Emerging Real Estate Markets to Watch in 2023

After two years of constant growth in property prices, the residential housing market in the United States experienced a significant slowdown during the first half of 2022, which continued into the early months of 2023.

With property prices climbing up the chart by 40% during these two years, many investors and buyers are now facing difficulties to afford new properties. With little space for doubt in mind related to future growth prospects and rising inflation across sectors, combined with declines in the stock market, have made it more challenging for people to save enough money for investing in emerging real estate markets.

Higher interest rates is another factor that has increased borrowing costs, making it harder for buyers and first-time purchasers who have limited down payment funds.

As a result of these factors combined, there has been a decrease in market activity. One area that has been significantly affected by these developments is home sale prices. The surge in housing prices was particularly prominent during COVID-19 when low-interest rates, increased household savings, and strong investment returns coincided with people spending time at home. The year-over-year growth rate reached a peak of 26.1% in May 2021. Remained at double-digit percentage growth until mid-2022. However, by the end of 2022, home prices had only risen modestly by 1.3% compared to the year prior.

However, some parts of the country have defied the norm and shown decent levels of real estate activity in the beginning of 2023. While prices have remained stable in specific areas states, some regions have experienced a trend of homes being sold at prices higher than their initial listing. Some markets have shown resilience despite the overall decline in housing demand.

To identify the hottest real estate markets for 2023, we will discuss some key indicators and the overall market outlook. Here are some key indicators that can help you give a perspective on the market:

1. One-year change in median sale price (with higher values ranking higher)
2. The proportion of homes sold above the asking price (with higher values ranking higher)
3. Number of days a property remains on the market (with lower values ranking higher)
4. Sale-to-list percentage (with higher values ranking higher)
5. Percentage of listings with price reductions (with lower values ranking higher)

In the next section, you will find the top six emerging markets with the most dynamic real estate and potential for growth.

50 Emerging Real Estate Markets to Lookout for in 2023

Let us understand the specifics of each of the 50 top emerging real estate markets in the US to look out for in 2023. First, let us understand the top 10.

Top 10 Emerging Real Estate Markets

#1 Charlotte (North Carolina)

 

MSP	$390,537
One-Year % Change in Median Sale Price	+6.8%
Homes Sold Above Asking	48.9%
Average Days on the Market	31.2
Sale-to-List Percentage	101.4%
Percentage of Listings with Price Reductions	24.0%

 

Situated in the heart of North Carolina, Charlotte is a city known for its economy, vibrant culture, and abundance of outdoor activities. With a growing population and thriving job market, Charlotte’s real estate sector is expected to experience growth in the coming years. The projected market outlook for the year indicates an 8.2% increase, presenting an excellent opportunity for investors.

One compelling reason to consider investing in Charlotte’s real estate market is the city’s job market. With a range of industries and major companies like Bank of America and Duke Energy headquartered here, Charlotte maintains an unemployment rate and continues to attract more people. These factors contribute to the demand for properties within the city.

#2 Austin (Texas)

MSP	$604,344
One-Year % Change in Median Sale Price	-3.9%
Homes Sold Above Asking	47.1%
Average Days on the Market	37.2
Sale-to-List Percentage	97.1%
Percentage of Listings with Price Reductions	42.5%

The market has seen some disruptions due to all the commotion. Despite the nationwide inflation and rising interest rates, Austin will remain a popular place for sellers. The Austin Metropolitan Statistical Area (MSA) prices are still climbing because of an influx of new residents and a rapidly recovering local economy.

 

#3 Aurora (Colorado)

 

MSP	$476,319
One-Year % Change in Median Sale Price	-1.3%
Homes Sold Above Asking	54.5%
Average Days on the Market	10.7
Sale-to-List Percentage	102.4%
Percentage of Listings with Price Reductions	44.3%

The city encompasses industries including transportation, commercial centers, healthcare facilities, and government services. Job opportunities in Aurora are projected to grow by 42% over the next decade. These factors make it an appealing prospect for buyers. Investors can confidently regard Aurora as a long-term investment opportunity.

 

Aurora has exceptional public schools, low crime rates, family-friendly neighborhoods, and progressive values.

#4 Raleigh (North Carolina)

 

MSP	$410,064
One-Year % Change in Median Sale Price	-1.3%
Homes Sold Above Asking	55.6%
Average Days on the Market	30.8
Sale-to-List Percentage	103.1%
Percentage of Listings with Price Reductions	23.9%

With a large community of students in Raleigh, it offers a good growth opportunity for real estate investors looking to invest in something and earn passive income. In addition to being the location of three known universities, job opportunities are on the horizon.

The presence of institutions and the promising job market have led to a community of renters with steady incomes. Raleigh is currently experiencing an increase in both housing prices and rental rates, which reflects its status as one of the best housing markets in the country.

 

#5 El Paso (Texas)

 

MSP	$231,843
One-Year % Change in Median Sale Price	+9.3%
Homes Sold Above Asking	48.3%
Average Days on the Market	19.9
Sale-to-List Percentage	101.0%
Percentage of Listings with Price Reductions	16.6%

The real estate market in El Paso is receiving support from the economy, particularly regarding job opportunities. While the local unemployment rate is comparable­ to the national average, there has been a notable­ increase of 2.3 percent in job growth over the past year, surpassing the national average by nearly half a percentage point. These statistics suggest that El Paso’s job market is outperforming other regions.

El Paso’s real estate market may not be on par with other cities in Texas, but it has shown progress since the rece­ssion. The job sector is also strengthe­ning, which is expected to benefit those who are currently investing in real estate­ in El Paso.

 

#6 Oakland (California)

 

MSP	$906,959
One-Year % Change in Median Sale Price	-0.9%
Homes Sold Above Asking	72.1%
Average Days on the Market	18.9
Sale-to-List Percentage	113.1%
Percentage of Listings with Price Reductions	22.6%

Oakland seems to be a sought-after market for sellers at the moment. Many investors and individuals are searching for homes; surprisingly, there is a bit of a shortage from the seller’s side. This situation could be a chance for investors who know how to navigate the market.

Over the ten years, Oakland has experienced growth in its real estate sector. Currently, local home values are reaching all-time highs, causing many people to question whether it’s the time to take action.

 

#7 Dallas (Texas)

MSP	$417,510
One-Year % Change in Median Sale Price	-11.5%
Homes Sold Above Asking	46.7%
Average Days on the Market	21.8
Sale-to-List Percentage	101.4%
Percentage of Listings with Price Reductions	26.0%

Many investors have been questioning the viability of purchasing property in Dallas. To gain insight into the 2023 real estate market for both investors and regular buyers, it is essential to research trends. The housing market in Dallas presents a great opportunity if you are interested in expanding your real estate portfolio with deals with great potential.

Regarding real estate, the importance of location cannot be overstated, and Dallas excels in this aspect. In fact, Dallas leads the nation with 11,636 approved projects that include both single-family and joint-family units. This statistic highlights the potential of Dallas within the real estate industry.

#8 Jacksonville (Florida)

MSP	$299,529
One-Year % Change in Median Sale Price	-1.1%
Homes Sold Above Asking	34.4%
Average Days on the Market	28.0
Sale-to-List Percentage	99.2%
Percentage of Listings with Price Reductions	29.0%

As of July 31, 2023, the Jacksonville housing market is showing a great projection for the future. When inve­sting, it’s essential to balance both the value and the strategy. If your goal is solely to generate high monthly rental income, buying real estate in Jacksonville­ may not be the most suitable choice. However, if you’re a savvy inve­stor with a long-term vision, Jacksonville could be an excellent opportunity.

#9 Tampa (Florida)

MSP	$390,967
One-Year % Change in Median Sale Price	+10.6%
Homes Sold Above Asking	40.4%
Average Days on the Market	14.5
Sale-to-List Percentage	99.9%
Percentage of Listings with Price Reductions	31.1%

Tampa, situated in Hillsborough County, is a city known for its walkability. It has a population of 335,749 residents. When we consider the area of Greater Tampa Bay, which includes both Tampa and Sarasota metro regions, the population expands to over 4 million. This region not only serves as an urban center but also holds significant appeal as a popular tourist destination.

Recently, Tampa has been gaining attention for its thriving housing market, attracting investors. The rental market in the Tampa Bay area displays strength, making it an excellent choice for those purchasing rental properties in Florida.

#10 Madison (Wisconsin)

MSP	$365,389
One-Year % Change in Median Sale Price	+6.4%
Homes Sold Above Asking	57.4%
Average Days on the Market	39.6
Sale-to-List Percentage	103.4%
Percentage of Listings with Price Reductions	12.4%

Currently, Madison, Wisconsin, is experiencing a seller’s market, indicating a demand for properties in the area. This increased demand can be attributed to Madison’s location, thriving economy, and exceptional quality of life.

Madison stands out as it is home to the University of Wisconsin Madison, creating a need for rental properties. Additionally, the city boasts a job market supported by known employers, like American Family Insurance and the University of Wisconsin Madison.

Other 40 Emerging Real Estate Markets To Watch For

#11 Salt Lake City (Utah)

 

MSP	$553,421
One-Year % Change in Median Sale Price	+1.6%
Homes Sold Above Asking	46.6%
Average Days on the Market	19.4
Sale-to-List Percentage	101.3%
Percentage of Listings with Price Reductions	36.4%

 

Salt Lake City in Utah often goes unnoticed by real estate investors. Often overlooked by investors, it is nearly half of the job opportunities in Utah, and 40% of its population can be found within Salt Lake.

Salt Lake City has emerged as a “number one” choice for long-term investments in properties across the US. Not only this, recent data shows that this understated city, since the last decade or so, has shown an appreciation rate of 161.55%, resulting in an average annual home appreciation rate of 10.09%. This accomplishment puts Salt Lake City among the 10% of cities nationwide regarding real estate value growth.

#12 Nashville-Davidson (Tennessee)

 

MSP	$453,068
One-Year % Change in Median Sale Price	+2.1%
Homes Sold Above Asking	44.4%
Average Days on the Market	29.3
Sale-to-List Percentage	101.1%
Percentage of Listings with Price Reductions	25.7%

Nashville, Tennessee, is famous for its known attractions, such as the Grand Ole Opry, a replica of the Parthenon, and its lively country music. As a tourist destination in the heart of America, Nashville has established itself as a city with its unique charm. Nashville, with a population of over 600,000 residents, is one of the most populous cities in the United States. When we take into account the areas within Davidson County, the Nashville real estate market e­ncompasses around 700,000 people.

Over the past years, the housing market in Nashville­ Davidson has been highly favorable for se­llers with rising property prices. It has garne­red a reputation as one of the­ most desirable housing markets in the United States. This positive trend in real estate started a decade ago, and expe­rts anticipate that it will continue well into 2023 and beyond.

#13 Orlando (Florida)

 

MSP	$353,400
One-Year % Change in Median Sale Price	+2.9%
Homes Sold Above Asking	37.6%
Average Days on the Market	15.1
Sale-to-List Percentage	99.6%
Percentage of Listings with Price Reductions	26.8%

 

The real estate market in Orlando has a lot of potential for growth because of its expansion and the increasing number of people moving to the city. Since 2018, Orlando has maintained stability mostly due to its tourism industry. However, it’s not only tourism that plays a role in the city’s economy. Nashville­ has also emerged as a ce­nter for high-tech industries.

With the incre­ase in job opportunities, Orlando has become a popular choice for people from various parts of the­ country and even abroad to settle­ down. This growing trend has resulted in a higher demand for both residential and comme­rcial properties. For investors seeking profitable rental income, Orlando is worth considering as over 46% of households in the city are occupied by rente­rs.

#14 Boise (Idaho)

 

MSP	$514,184
One-Year % Change in Median Sale Price	-1.6%
Homes Sold Above Asking	26.2%
Average Days on the Market	20.0
Sale-to-List Percentage	99.3%
Percentage of Listings with Price Reductions	48.8%

 

Lately, the housing market in all over the US has seen a dip, and Idaho was not spared. But that’s not why it is on this list. Idaho is still attracting interest because it’s affordable and offers a quality of life. If there’s no supply, sellers might have chances to raise prices and wait for the buyer patiently.

#15 Charleston (South Carolina)

 

MSP	$493,750
One-Year % Change in Median Sale Price	+10.2%
Homes Sold Above Asking	35.2%
Average Days on the Market	43.8
Sale-to-List Percentage	100.1%
Percentage of Listings with Price Reductions	17.8%

Charleston’s real estate market often goes unnoticed compared to the other markets, like in Texas and Florida. However there are reasons why property investors find Charleston an attractive destination. This coastal city has consistently shown growth, making it an appealing option for those interested in real estate investment.

Charleston is known for being favorable to landlords. The city’s economic prospects indicate that housing demand and rental rates will continue to rise, making it a more encouraging buy for real estate investors.

#16 Knoxville (Tennessee)

 

MSP	$293,612
One-Year % Change in Median Sale Price	+7.3%
Homes Sold Above Asking	46.6%
Average Days on the Market	40.5
Sale-to-List Percentage	101.1%
Percentage of Listings with Price Reductions	22.9%

With mortgage rates at their highest levels in ten years and concerns about inflation, the housing frenzy caused by the pandemic is naturally calming down. However, the real estate market in Knoxville is handling it really well, and even the MSP has changed substantially in favor of Knoxville, where other investors are facing substantial losses.

Investing in the Knoxville real estate market might be a good choice for those looking for the right entry points and potential solid growth of their portfolio.

#17 Des Moines (Iowa)

 

MSP	$189,597
One-Year % Change in Median Sale Price	+2.9%
Homes Sold Above Asking	36.8%
Average Days on the Market	12.7
Sale-to-List Percentage	99.4%
Percentage of Listings with Price Reductions	38.5%

Des Moines has a foundation for growth. Des Moine­s boasts an impressively low unemployme­nt rate of just 3.9 percent, we­ll below the national average­ of around 5.6 percent. However, the city could work towards increasing its job growth rate, which currently stands at 1.1 percent, nearly half the national average of 1.9 percent. If Des Moines can continue to produce positive economic indicators like this in the future, inve­stors may see substantial returns, particularly in the­ thriving housing market. 

#18 Miami (Florida)

 

MSP	$533,410
One-Year % Change in Median Sale Price	+9.6%
Homes Sold Above Asking	22.2%
Average Days on the Market	55.1
Sale-to-List Percentage	97.5%
Percentage of Listings with Price Reductions	12.4%

In the ten years, real estate market in Miami has experienced growth with an overall appreciation of 188.09%. This impressive figure translates to an annual appreciation rate of 11.16%, placing Miami in the top 10% nationwide.

However, whether purchasing a house in Miami is advisable depends on circumstances and objectives. Considering the potential for increases in home value so far, it may present a favorable opportunity for buyers with long-term investment goals or those capable of making quick decisions in this fast-paced market.

#19 Omaha (Nebraska)

 

MSP	$254,817
One-Year % Change in Median Sale Price	+8.9%
Homes Sold Above Asking	51.8%
Average Days on the Market	7.8
Sale-to-List Percentage	102.1%
Percentage of Listings with Price Reductions	29.5%

The real estate market in Omaha is poised for long-term growth largely due to its demographics. The average age of residents is 35, which is younger than the state average. The presence of colleges in the housing market further influences the young population in Omaha. Moreover, many college graduates choose to stay in this job market. This contributes to increased demand for property value in Omaha, which is remarkable considering it’s a region known for its declining small towns.

The market’s resilience can be attributed to factors such as a supply of affordable starter homes and a strong economy that attracts individuals from across the region seeking employment opportunities here.

#20 Tallahassee (Florida)

 

MSP	$231,369
One-Year % Change in Median Sale Price	+15.9%
Homes Sold Above Asking	38.7%
Average Days on the Market	42.7
Sale-to-List Percentage	99.8%
Percentage of Listings with Price Reductions	12.4%

Since August 2023, there has been a rise, in home prices in Tallahassee. In fact, they have increased by 15.9% compared to the last year. This price surge can be attributed to a combination of factors that have come together to shape the housing market in the city.

One major factor contributing to this price increase is the availability of constructed homes. Previous years have faced a decrease in housing projects that created a shortage – which in turn led to this growth.

#21 Denver (Colorado)

 

MSP	$589,325
One-Year % Change in Median Sale Price	-3.6%
Homes Sold Above Asking	49.8%
Average Days on the Market	10.4
Sale-to-List Percentage	102.5%
Percentage of Listings with Price Reductions	38.5%

Denver has consistently proven itself to be one of the best long-term real estate investments in the United States. The city’s strong economy is a factor in its reputation as it allows buyers to allocate financial resources towards housing, which drives up real estate prices.

Looking ahead to the year 2023, the market forecast predicts a growth rate of 3.5%. This forecast suggests an outlook for the Denver housing market, indicating a potential recovery from the recent decline in real estate values. It’s news for both homeowners and prospective buyers. A noteworthy indicator of market stability is the number of days it takes for a property to sell, which is 10.4 days as of the recent data of 2023. This short period emphasizes that properties are quickly transitioning due to the demand for homes in the Denver area. This strong demand solidifies Denver’s position as an attractive long-term investment opportunity.

#22 San Jose (California)

 

MSP	$1,330,942
One-Year % Change in Median Sale Price	-8.9%
Homes Sold Above Asking	65.9%
Average Days on the Market	16.6
Sale-to-List Percentage	106.9%
Percentage of Listings with Price Reductions	26.1%

San Jose’s real estate market has been a top choice for long-term inve­stments across the country for the past de­cade. The housing landscape in San Jose­ consists of a mix of owner-occupied and rental properties.

Despite some decreases in home­ prices, the market remains highly competitive. In fact, an impressive­ 65.9% of properties sell above their listed prices, with a proje­cted growth rate of 1.7%. It is worth noting that the de­cline in prices may be a necessary adjustment within the marke­t rather than an indication of a slowing market overall.

#23 Columbus (Ohio)

 

MSP	$259,695
One-Year % Change in Median Sale Price	+6.4%
Homes Sold Above Asking	52.6%
Average Days on the Market	36.2
Sale-to-List Percentage	102.3%
Percentage of Listings with Price Reductions	20.9%

Investing in Columbus presents a range of opportunities, from single-family residences to apartment complexes with multiple units. The city has an economy, an unemployment rate, and a steadily growing population, making it an attractive market for rental properties.

However, it’s important to choose the right location. For example, Italian Village has a home value of $397,113, whereas in Milo Grogan, it’s $114,460. Therefore it is highly recommended to conduct research on neighborhoods and seek guidance from local real estate experts who have extensive knowledge of the market.

#24 San Diego (California)

 

MSP	$869,443
One-Year % Change in Median Sale Price	-1.1%
Homes Sold Above Asking	52.4%
Average Days on the Market	15.9
Sale-to-List Percentage	102.2%
Percentage of Listings with Price Reductions	12.4%

The real estate market in San Diego is known for being one of the most expensive in the country, although there are cities on the West Coast that surpass it in terms of cost. This pricing situation has led to increased demand for rental properties in San Diego, specifically for those who face financial challenges when it comes to owning a home.

With the expected population growth of 500,000 people by 2050, which is steadily increasing by tens of thousands each year by the way, the rental market is set to experience expansion. Currently, the average rent in San Diego is $2,700 per month, and it can be much higher depending on the location and availability.

#25 Reno (Nevada)

 

MSP	$543,806
One-Year % Change in Median Sale Price	-2.9%
Homes Sold Above Asking	34.1%
Average Days on the Market	38.4
Sale-to-List Percentage	99.5%
Percentage of Listings with Price Reductions	29.8%

Reno is an amazing destination for tourists. Its attractions like the beautiful Lake Tahoe and the exciting Reno Air Races, are one of the exciting places tourists can visit here. For those interested in real estate investment, the thriving tourism industry in Reno offers an income opportunity through short-term rentals and vacation homes.

Additionally, Reno’s strategic placement with close distance to cities like San Francisco, Sacramento and Las Vegas makes it an attractive choice for both businesses and residents. Subsequently, it increases housing demand, making Reno a promising market for real estate investors.

#26 Phoenix (Arizona)

 

MSP	$441,268
One-Year % Change in Median Sale Price	-1.4%
Homes Sold Above Asking	39.6%
Average Days on the Market	33.4
Sale-to-List Percentage	100.0%
Percentage of Listings with Price Reductions	31.6%

Phoenix has experienced a significant rise in its population, but the housing market has not kept up with the pace creating demand for housing. According to a study, Arizona fell short by 505,134 housing units between 2000 and 2015. This shortage has resulted in a housing crisis in Phoenix. To put it into perspective, over the thirty years or so, around 220,000 new housing units were built in Phoenix while the population surged by a staggering figure of 820,000 people. It’s quite clear that the rate of housing production in Phoenix hasn’t been able to match the increase in population.

The presence of universities within the city also plays a role in shaping housing prices and rental rates. These campuses collectively accommodate over seventy thousand students, which further impacts positively the housing landscape.

#27 Elk Grove (California)

 

MSP	$642,447
One-Year % Change in Median Sale Price	-12.5%
Homes Sold Above Asking	56.5%
Average Days on the Market	17.0
Sale-to-List Percentage	101.5%
Percentage of Listings with Price Reductions	38.4%

The historic district of Elk Grove is a hub that brings the community together. Elk Grove, as a whole, offers a variety of properties to cater to everyone’s tastes. Whether you’re looking for ranches with plenty of land, luxurious homes with stunning golf course views, or charming family residences tucked away on suburban streets, you’ll find your perfect fit right here.

Although the recent decline indicates a “slippery” slope but the long-term view provides a look at many opportunities here. With 56.5% of homes selling above the asking price with an average of just 17 days in the market.

#28 Seattle (Washington)

 

MSP	$844,285
One-Year % Change in Median Sale Price	+0.6%
Homes Sold Above Asking	42.7%
Average Days on the Market	11.0
Sale-to-List Percentage	103.5%
Percentage of Listings with Price Reductions	26.9%

Seattle’s housing market is booming – This surge can be primarily attributed to the arrival of paid tech professionals from companies like Amazon, Microsoft, Google, and Facebook. Workforces from these companies are actively seeking homes with dedicated workspaces, which has become a growing trend during the pandemic when remote work became prevalent.

Although there has been an increase in housing inventory, the real estate market in the Puget Sound region remains tight. There is less than a two-month supply of homes, making it a seller’s market where limited properties face demand from buyers. As a result, home prices will likely stay at the top for the foreseeable future.

 

#29 Lincoln (Nebraska)

 

MSP	$269,829
One-Year % Change in Median Sale Price	+11.1%
Homes Sold Above Asking	51.0%
Average Days on the Market	10.1
Sale-to-List Percentage	101.3%
Percentage of Listings with Price Reductions	17.4%

The housing market in Lincoln, Nebraska is an example of how gradual growth can bring great advantages. Although the increase in home prices may not be extremely impressive the presence of elements suggests that this growth is sustainable.

A combination of factors such as unemployment rates, robust job growth, managed foreclosure levels, and high affordability all contribute to an economy that can handle small fluctuations. With continued expansion, the real estate market in Lincoln has the potential to set an example for other cities across the USA to follow.

#30 Houston (Texas)

 

MSP	$319,747
One-Year % Change in Median Sale Price	+0.0%
Homes Sold Above Asking	30.1%
Average Days on the Market	21.2
Sale-to-List Percentage	98.9%
Percentage of Listings with Price Reductions	26.4%

The Houston housing marke­t is currently balanced between buyers and selle­rs. While home values did experience a slight de­cline over the past year, future indicators suggest the potential for growth. With a diverse range of pricing strategies and quick pending transaction times, both buye­rs and sellers have advantage­ous opportunities. To make well-informe­d decisions in this market, individuals should assess their objectives, gather valuable­ market insights, and seek guidance­ from industry experts.

#31 Atlanta (Georgia)

 

MSP	$410,742
One-Year % Change in Median Sale Price	+2.6%
Homes Sold Above Asking	39.3%
Average Days on the Market	24.1
Sale-to-List Percentage	99.9%
Percentage of Listings with Price Reductions	24.6%

Atlanta has consistently ranked as one of the best real estate markets for investors, especially when it comes to investing in rental properties. The city has experienced population growth, with around 285,000 people moving to Georgia in 2019. This increase in migration can be credited to Atlanta’s business environment and its reputation for being more affordable compared to big cities. As a result, there is a growing demand for housing in Atlanta that surpasses the rate of construction.

The shortage of housing remains a challenge in Atlanta. It is expected that this scarcity will continue driving up property prices in the foreseeable future.

#32 Riverside (California)

 

MSP	$597,515
One-Year % Change in Median Sale Price	-2.6%
Homes Sold Above Asking	57.5%
Average Days on the Market	29.0
Sale-to-List Percentage	101.3%
Percentage of Listings with Price Reductions	24.1%

Riverside is a vibrant city that offers benefits for people looking to buy homes or invest in the real estate market. The city boasts a population with a thriving economy and a wide variety of housing options. The Riverside real estate market has been on a trajectory, with home prices consistently increasing.

Several key factors contribute to this trend in the Riverside real estate market. One of these factors is the economy, supported by major employers like Kaiser Permanente and the University of California. Additionally, Riverside’s strategic location near Los Angeles plays a role in driving its real estate growth. Being just a short distance away from Los Angeles makes Riverside an attractive choice for many commuters.

#33 Port St. Lucie (Florida)

 

MSP	$384,165
One-Year % Change in Median Sale Price	+16.1%
Homes Sold Above Asking	34.9%
Average Days on the Market	42.5
Sale-to-List Percentage	99.6%
Percentage of Listings with Price Reductions	24.3%

The housing market, in Port St. Lucie has seen a constant trend for the past few years. This can be attributed to the growing demand for homes combined with a supply of properties.

Moreover, the city’s advantageous location on the East Coast near centers such as Miami and West Palm Beach has contributed to the increased demand. As a result, property prices in Port St. Lucie have been steadily rising, making it an attractive option for both homeowners and investors.

#34 Virginia Beach (Virginia)

 

MSP	$336,786
One-Year % Change in Median Sale Price	+4.6%
Homes Sold Above Asking	54.9%
Average Days on the Market	19.2
Sale-to-List Percentage	101.6%
Percentage of Listings with Price Reductions	19.9%

Virginia Beach is known for being a location for real estate investments due to its strong and competitive housing market. With a range of property choices from beachfront houses to condos, townhouses, and large single-family homes, there is something for everyone. Looking ahead, the future looks promising for Virginia Beach’s real estate scene, with a projected growth rate of 4.4% by next year.

#35 Huntsville (Alabama)

 

MSP	$325,483
One-Year % Change in Median Sale Price	-0.9%
Homes Sold Above Asking	43.1%
Average Days on the Market	26.6
Sale-to-List Percentage	101.2%
Percentage of Listings with Price Reductions	19.8%

Huntsville real estate market stands out for being surprisingly affordable compared to markets even those facing less favorable economic conditions. The city boasts a thriving economy, a strong job market, and housing that remains easily accessible to residents.

These factors combined make Huntsville’s real estate sector benefit from a blend of circumstances. Additionally, home values in Huntsville have consistently exceeded the average over the ten years.

#36 Bakersfield (California)

 

MSP	$385,687
One-Year % Change in Median Sale Price	+3.8%
Homes Sold Above Asking	46.4%
Average Days on the Market	19.1
Sale-to-List Percentage	100.5%
Percentage of Listings with Price Reductions	27.2%

Bakersfield, located in California, holds a place within the Inland Empire even though it often gets overshadowed by famous coastal cities like San Francisco and Los Angeles. Around 400,000 people call Bakersfield home within its city limits, which makes it the largest city in California.

The real estate market in Bakersfield has been experiencing growth, placing it among the 10% nationally for property appreciation. Over the decade, property values in Bakersfield have seen an increase of 150.36 percent—equivalent to an average annual appreciation rate of 9.61 percent.

#37 Indianapolis (Indiana)

 

MSP	$232,593
One-Year % Change in Median Sale Price	+2.3%
Homes Sold Above Asking	40.2%
Average Days on the Market	9.1
Sale-to-List Percentage	100.1%
Percentage of Listings with Price Reductions	37.9%

The real estate market in Indianapolis has been marked by competition and quick sales, often leading to properties being bought at higher prices than their initial listings. The one-year market forecast predicts a growth projection of 7.6%, indicating a demand in the future. This forecast reinforces the notion that the market is not showing any signs of slowing down but rather maintaining its momentum.

#38 Richmond (Virginia)

 

MSP	$339,168
One-Year % Change in Median Sale Price	+7.7%
Homes Sold Above Asking	58.8%
Average Days on the Market	10.6
Sale-to-List Percentage	104.1%
Percentage of Listings with Price Reductions	28.1%

Richmond, the capital city of Virginia (VA), offers a vibrant blend of culture, history, and economic opportunities. Its diverse economy is flourishing in various se­ctors. Experts predict that the Richmond re­al estate market will continue to experience growth, with prices expecte­d to rise gradually rather than seeing a surge. However, limite­d inventory may lead potential home­buyers to face competition and pote­ntially pay above the asking price for de­sirable properties.

If you’re a landlord or property investor, it might be worth considering the Richmond rental market. Indications show that rental price­s are on the rise, and the market is gaining momentum. However, potential buyers may encounter difficulties due to mortgage re­lated challenges.

#39 Baltimore (Maryland)

 

MSP	$216,060
One-Year % Change in Median Sale Price	+6.6%
Homes Sold Above Asking	36.6%
Average Days on the Market	30.8
Sale-to-List Percentage	102.2%
Percentage of Listings with Price Reductions	26.7%

Baltimore is well-known for its affordable real estate­ market, particularly in comparison to cities like Los Angeles or New York. Investors have the opportunity to purchase properties at a significantly lower cost compared to these­ metropolitan areas. Additionally, Baltimore’s real estate market has seen consistent growth in the recent years, primarily due to its strong local economy.

The re­ntal market in Baltimore is thriving due to several factors, including a growing population and relatively affordable­ living costs. This creates an appealing opportunity for inve­stors looking to buy properties and rent them out to tenants.

#40 Wichita Falls (Texas)

 

MSP	$152,697
One-Year % Change in Median Sale Price	+47.2%
Homes Sold Above Asking	21.2%
Average Days on the Market	46.9
Sale-to-List Percentage	96.4%
Percentage of Listings with Price Reductions	29.7%

 

If you’re looking for homes that have the potential for flipping, Wichita Falls is a great choice for investing in properties. However, if you’re thinking of making it your permanent residence, you’ll discover that the cost of living in Wichita Falls is 1% lower compared to the state average and 9% lower than the average.

Moreover, housing expenses in Wichita Falls are 20% below the average across the United States. When you consider all these factors together, it becomes an investment opportunity.

#41 Portland (Oregon)

 

MSP	$545,469
One-Year % Change in Median Sale Price	-1.8%
Homes Sold Above Asking	50.3%
Average Days on the Market	14.1
Sale-to-List Percentage	102.4%
Percentage of Listings with Price Reductions	36.0%

Portland is a city that attracts homebuye­rs and real estate e­xperts for several reasons. Its stunning landscapes, vibrant culture, and flourishing real e­state market are just some of the factors that make it a desirable­ location. With a strong economy, growing population, and thriving rental market, Portland offers promising opportunities for real estate­ investment. Investors are drawn to the potential for long-term appre­ciation and consistent cash flow in this dynamic city.

Portland offers a strong job marke­t as another appealing aspect for inve­stors. The city is home to a range of industries, including technology, healthcare, e­ducation, and manufacturing. With the presence­ of major employers and a growing entre­preneurial ecosyste­m, Portland provides a stable economic e­nvironment that attracts potential tenants and buye­rs for investment properties.

#42 Lexington-Fayette (Kentucky)

 

MSP	$292,038
One-Year % Change in Median Sale Price	+11.4%
Homes Sold Above Asking	42.0%
Average Days on the Market	11.4
Sale-to-List Percentage	100.4%
Percentage of Listings with Price Reductions	27.1%

The population of Lexington is increasing, which has resulted in an increase, in the cost of living. However, when compared to cities across the country, Lexington remains quite affordable. Due to its college population, there are plenty of housing options available at reasonable prices. Whether you’re looking to rent or buy a home, your money can go further in Lexington than in American cities.

That being said, like metropolitan areas, housing prices in Lexington have been trending upward in recent years. For buyers who prefer neighborhoods with competition, it might be worth exploring areas such as Castlewood, Irishtown, or Eastland.

#43 Tulsa (Oklahoma)

 

MSP	$218,904
One-Year % Change in Median Sale Price	+4.0%
Homes Sold Above Asking	41.3%
Average Days on the Market	11.2
Sale-to-List Percentage	99.7%
Percentage of Listings with Price Reductions	31.6%

Over the past year, the housing market in Tulsa has experienced significant growth, with an ave­rage increase of 4% in home­ values. The median home­ value now stands at $218,904. Additionally, there is a strong se­ller’s market, as indicated by the­ current median sale-to-list ratio. Furthermore, homes are se­lling relatively quickly, with a short median days to pe­nding sale. These trends point to a high demand for homes in Tulsa.

Tulsa’s rental marke­t is thriving, with high demand for rental properties and low vacancy rates. This creates opportunitie­s for investors to generate­ passive income through rentals. Additionally, Tulsa’s large­ student population makes it an attractive inve­stment option, thanks to the prese­nce of multiple college­s and universities in the are­a. These institutions include the­ University of Tulsa, Oral Roberts University, Oklahoma State­ University, and the Spartan School of Aeronautics.

#44 Arlington (Texas)

 

MSP	$339,551
One-Year % Change in Median Sale Price	+10.0%
Homes Sold Above Asking	54.0%
Average Days on the Market	20.1
Sale-to-List Percentage	101.9%
Percentage of Listings with Price Reductions	30.9%

Arlington offers an ide­al location and affordable real estate­ options, combining the benefits of suburban living with conve­nient access to a major city. With its diverse­ business scene, Arlington is an attractive­ choice for real estate­ investment. The city boasts a wide­ range of businesses and e­mployers, from large corporations to small ente­rprises. Its prime location has contributed to a thriving re­al estate market, with high de­mand for homes, including luxury properties.

#45 Cape Coral (Florida)

 

MSP	$414,440
One-Year % Change in Median Sale Price	+8.5%
Homes Sold Above Asking	31.7%
Average Days on the Market	17.3
Sale-to-List Percentage	99.1%
Percentage of Listings with Price Reductions	32.7%

Now is a time to explore your options if you’re thinking about buying a home in Cape Coral. The prices of homes are still quite affordable. There are plenty of choices. However it’s an idea to act because the market is expected to soften in the next few months gradually.

When it comes to the cost of living, Cape Coral is slightly higher than the average. It’s important to keep in mind that Cape Coral is a tourist spot during the winter season, which can lead to more traffic and congestion. Cape Coral School District has an average ranking, making it more appealing as a place to live.

#46 Sacramento (California)

 

MSP	$497,707
One-Year % Change in Median Sale Price	-5.8%
Homes Sold Above Asking	56.2%
Average Days on the Market	15.2
Sale-to-List Percentage	101.6%
Percentage of Listings with Price Reductions	37.5%

Sacramento County, located in the heart of the Central Valley region, is a lively area. It has a history, a culture, and a strong economy that have all attracted many people looking for a great quality of life and promising opportunities.

The county’s prime location along with its transportation infrastructure and abundance of amenities, has made it very appealing to both residents and those from out of state who are looking to buy homes. The housing market in Sacramento has experienced an increase in sales activity, although the median sales price has decreased. One significant factor contributing to this trend is the availability of homes for sale, which has decreased by 46% compared to the year.

#47 Sioux Falls (South Dakota)

 

MSP	$300,959
One-Year % Change in Median Sale Price	+13.4%
Homes Sold Above Asking	48.9%
Average Days on the Market	42.6
Sale-to-List Percentage	101.9%
Percentage of Listings with Price Reductions	9.4%

Sioux Falls has become a spot for real estate investors in the few years due to its strong economy, affordable housing choices, and excellent quality of life. If you’re thinking about investing in the Sioux Falls real estate market, there are plenty of reasons to explore this opportunity.

The city has a diverse economy, with major employers in healthcare, finance, and manufacturing playing roles. This economic vitality has led to a demand for housing in the rental market.

#48 Greensboro (North Carolina)

 

MSP	$255,741
One-Year % Change in Median Sale Price	+16.4%
Homes Sold Above Asking	56.4%
Average Days on the Market	22.1
Sale-to-List Percentage	101.9%
Percentage of Listings with Price Reductions	21.9%

Gree­nsboro, NC, is currently experiencing a seller’s market, where there is high demand for homes but limited inventory available­. As a result, sellers have the advantage, often selling their homes at or close to the listing price. The shortage of available­ homes and the fast pace of sale­s contribute to this seller’s marke­t.

#49 Providence (Rhode Island)

 

MSP	$379,048
One-Year % Change in Median Sale Price	+11.4%
Homes Sold Above Asking	58.7%
Average Days on the Market	22.7
Sale-to-List Percentage	102.3%
Percentage of Listings with Price Reductions	17.2%

The Providence real estate market maintains a relatively high level of affordability. While it may not match the prices of properties in Toledo, Providence still offers more affordability than the majority of markets nationwide. Notably, affordability remains robust within the Providence housing market and displays no indications of decline.

For context, homeowners in Providence typically allocate around 11.1 percent of their income to cover monthly mortgage payments. In contrast, the national average hovers at approximately 15.1 percent. In essence, living in Providence proves to be more cost-effective than residing in most other markets throughout the country.

#50 Las Vegas (Nevada)

 

MSP	$410,488
One-Year % Change in Median Sale Price	-1.3%
Homes Sold Above Asking	41.1%
Average Days on the Market	29.6
Sale-to-List Percentage	99.8%
Percentage of Listings with Price Reductions	26.9%

Las Vegas, located in Nevada, is a city that provides limited walkability. It ranks as the­ 32nd most walkable large city in the U.S. and is home­ to 583,756 residents. Although Las Vegas does offer some public transportation options, it doesn’t have an extensive ne­twork of bike lanes. The downtown area of Las Vegas, famous for its casinos and hotels, stands out as the most acce­ssible neighborhood in the city. Howe­ver, housing options in this area are re­latively limited. Las Vegas has a mix of owne­r-occupied and renter-occupie­d housing units, making it a significant rental property market.

The strong job market in Las Vegas is a significant factor fueling this growth. With major industries like hospitality, gaming, and entertainment, the­ city offers plentiful employment opportunities that attract many individuals to relocate. As a re­sult, the increased de­mand for housing in the area contributes to the­ rise in home values.

Conclusion

Whether you’re looking to buy your dream or make an investment, 2023 could be the perfect time to get started. After a slowdown in housing markets last year, the spotlight is now turning towards markets with a reputation for steady and reliable performance.

These are the markets that have consistently maintained a pace. It’s expected that they will continue to remain active throughout 2023. And mind you, it’s always good to do more research before making real estate investments.

 

All data source: FRED

All image source: Wikipedia