Blog > Zillow Predicts Buffalo as 2024's Hottest Housing Market
Zillow has released its annual predictions for the hottest housing markets in 2024, taking into account factors such as expected home value growth, changes in owner-occupied households, job growth compared to new construction, and overall economic fundamentals. The hottest markets for 2024 are predominantly located in the Midwest, Great Lakes, and South, with Buffalo, N.Y., Cincinnati, Columbus, Ohio, Indianapolis, and Providence, R.I., topping the list. Despite fluctuations in mortgage rates and prices, these markets are expected to exhibit strong economic fundamentals, a fast-moving housing inventory, and stable home values.
Buffalo, N.Y., is projected to be the hottest housing market in 2024, with factors such as job creation outpacing new home construction projects and expectations for steady home values contributing to its top ranking. Cincinnati follows closely at second place, attributed to its high market velocity, where homes went pending in a median of just five or six days for most months in 2023. The report highlights price growth, inventory, velocity, and demographics as key factors influencing the housing market landscape in 2024.
In terms of price growth, home value growth in 2023 slowed due to high mortgage interest rates, and only 15 of the 50 largest markets are expected to see home values grow in 2024. Inventory and velocity play a crucial role, with low inventory markets experiencing outsized demand relative to supply. Demographics, particularly the activity of baby boomers and millennials in the housing market, are also emphasized. Zillow's predictions are based on a comprehensive methodology that includes forecasted annual home value appreciation, acceleration in home value appreciation, listing days per home, changes in employment, building permit data, and projected changes in owner-occupied households.
The coolest metro areas of 2024, with expected annual home value declines, include New Orleans, San Antonio, Denver, Houston, and Minneapolis, with projected declines in the number of owner-occupied households. The Zillow report provides a detailed analysis of the housing market landscape and factors contributing to the ranking of markets for the year 2024.