Top 10 Housing Markets Expected to See Significant Growth in 2023

Top 10 Housing Markets Expected to See Significant Growth in 2023

HARTFORD, Conn. (WTNH) – Dozens of markets across the country are poised to see a significant increase in potential buyers in 2023.

Realtor.com released its housing forecast and economic outlook for 2023, detailing which metro areas are expected to see growth – in both home sales and prices – during what is expected to be a tough time for the housing market. .

Connecticut’s Hartford-West Hartford-East Hartford metro area leads in Realtor.com’s report, which is expected to see sales growth jump 6.5% and produce an 8.5% price increase. With combined total growth of 15%, the Hartford metro area is expected to edge out the El Paso metro area in Texas and the Louisville metro area in Kentucky, which ranked second and third respectively in the 2023 housing forecast.

A ranking of the top 10 housing markets of 2023, as determined by Realtor.com, can be found below. (Metropolitan Statistical Areas, or MSAs, are defined by the U.S. Census Bureau.)

  • Hartford-West Hartford-East Hartford, Connecticut (combined 15% growth)
  • El Paso, TX (14.3%)
  • Louisville/Jefferson County, Kentucky/Indiana (13.6%)
  • Worcester, Massachusetts-Connecticut (13.1%)
  • Buffalo-Cheektawaga-Niagara Falls, New York (12.3%)
  • Augusta-Richmond County, Georgia/South Carolina (11.9%)
  • Grand Rapids-Kentwood, Michigan (11.6%)
  • Colombia, South Carolina (11.3%)
  • Chattanooga, Tennessee-Georgia (11.1%)
  • Toledo, Ohio (10.9%)

For comparison, the average combined growth for the entire United States, as projected by Realtor.com, is -8.7% (sales growth of -14.1%, price growth of 5, 4%).

Why is there such a presumed surge in interest in these particular metros? Realtor.com noted that this is likely due to the early stages of the COVID-19 pandemic, which saw mortgage rates fall to record lows. However, in 2022 the Fed raised the policy rate, making borrowing more expensive. Low prices have soared in 10 months, rising from 3.1% to almost 7.1%.

Many home buyers then searched for affordable metros, moving away from large urban centers towards medium-sized cities with strong economies.

Cities in the top 10 of Realtor.com’s Housing Report seem to fit this description, offering a greater share of affordable housing for median income.

Nor are those looking for a new home determined to stay where they are. The study found that more than 60% of homebuyers browsing Realtor.com are looking at properties away from their current cities – an increase from less than 50% of site users who were looking to move away from their residence. before the pandemic.

These smaller markets also attract retirees looking for a lower cost of living, young families looking for bigger homes, and people looking for a better quality of life.

“We expect cross-market activity to continue in 2023 as affordability keeps these key markets in the spotlight for homebuyers,” writes Realtor.com.

More information, as well as a ranking of the nation’s top 100 metros and their position in the report, can be found at Realtor.com.


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