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Mortgage rates may be falling from their 2023 highs, but affordability still remains a major factor for the average homebuyer, as asking prices continue to climb upwards.
With that in mind, listings giant Zillow is predicting that more affordable markets will be the ones to watch in 2024 as the housing market looks to return to some semblance of health.
“Housing markets are healthiest where affordable home prices and strong employment are giving young hopefuls a real shot at buying and starting to build equity,” said Anushna Prakash, data scientist for Zillow Economic Research. “I’m cautiously optimistic that the housing market will get back on stable footing in 2024 — we shouldn’t see the massive price spikes of the early pandemic or fast-rising mortgage rates of recent years.”
Zillow released its predictions for the top 10 housing markets of 2024 on Tuesday, highlighting markets that offer both affordable options for young homebuyers and plentiful job options.
1. Buffalo, New York
Buffalo, New York / Getty Images
The city in Western New York topped Zillow’s list for 2024, with Zillow economists highlighting the fact that it has the highest number of new jobs per new home permitted — a measure of expected demand, with new jobs often meaning new residents. The typical home value in Buffalo is $248,445 and the typical asking rent is just $1,257, both well below the national averages of $347,415 and $1,982.
2. Cincinnati, Ohio
Cincinnati, Ohio, is situated on the Kentucky border, where the Licking and Ohio Rivers meet.
Cincinnati came in second on Zillow’s list. The Ohio city has a typical home price of $270,826 and a typical rent of $1,527. The typical 5 percent down payment on a mortgage was $1,959, and properties typically sat on the market for 11 days.
3. Columbus, Ohio
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Reflecting Ohio’s deep affordability, Columbus landed third on the list right behind Cincinatti. Houses in the home of Ohio State are typically worth $301,138 and the typical asking rent is $1,431.
4. Indianapolis, Indiana
Indianapolis, Indiana / Unsplash: Josh Hild
The city at the center of Indiana ranked number four on Zillow’s list with an average home value of $268,125 and a typical rent of $1,468. Houses in Indianapolis typically sit on the market for 19 days, according to Zillow.
5. Providence, Rhode Island
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The biggest city in the smallest state landed fifth on Zillow’s list, one of the handful of cities on this year’s list that has a typical home value above the national average at $455,609, and an average rent of $2,039, also above the national average.
6. Atlanta, Georgia
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The ATL landed sixth on Zillow’s list for 2024. Atlanta has been in growth mode for the better part of the past decade, fueled by job creators like the entertainment and healthcare sectors. The typical home value stands at $373,212, while the typical asking rent is $1,903.
7. Charlotte, North Carolina
Charlotte, North Carolina / Getty Images: Andrea Evangelo Giamou
The city that landed at number one on Zillow’s 2023 list has fallen to number seven a year later. The North Carolina city has a typical home value of $371,844 and a typical asking rent of $1,791, according to Zillow.
8. Cleveland, Ohio
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Highlighting the Midwest’s deep affordability, Cleveland is the third Ohio city to appear on Zillow’s top 10 list. The city on the shores of Lake Erie has a typical home value of $215,597 — the lowest on Zillow’s 2024 top 10 — and a typical asking rent of just $1,330.
9. Orlando, Florida
Orlando, Florida / Unsplash: Cody Board
The home of Disney World ranks ninth on Zillow’s list, highlighting the desirability of Florida cities in recent years. Orlando has a typical home value of $388,048 and a typical asking rent of $2,013.
10. Tampa, Florida
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Tampa ranked number one on Zillow’s 2022 list but has fallen to number 10 as affordability has become increasingly important to the typical homebuyer. The Gulf Coast city has a typical home value of $375,338 and a typical asking rent of $2,091.
