The U.S. housing market is expected to continue cooling throughout 2023 as rising mortgage rates further dampen buyer demand and lead to slower sales in once popular markets, but according to Zillow, some housing destinations are better prepared to weather a downturn than others. With strong forecasted home value growth, a healthy local economy, fast-moving inventory, and a growing share of prospective buyers, Charlotte, NC is predicted to be the hottest housing market of 2023.
On the contrary, markets like San Jose, Sacramento, Minneapolis, and Denver will likely see annual home value declines and slower market activity after topping the charts of a mid-pandemic housing boom.
Zillow’s list of the hottest markets in 2023 is based on an analysis of forecast home value growth, recent housing market velocity and projected changes in the labor market, home construction activity and number of homeowner households.
Pushing Charlotte to the top of the list is its forecasted annual home price growth, and Cleveland’s second-place rank can be attributed to its high market velocity and job growth. While Pittsburgh is the only market in the top five with forecasted household declines, it makes up for the drop in owner-occupied homes with the fourth-highest ratio of jobs added per new home permitted.
Advertisement
Related Stories
Business Management
How 2023's Housing Market Conditions Are Affecting the 2024 Housing Market
Last year ended on an optimistic note, but persistent headwinds still exist to keep 2024 from getting the housing market back to pre-pandemic levels
Affordability
Median US Down Payment Falls by More Than $4,000
The recent decrease in costs is welcome relief for homebuyers, but many West Coast markets remain expensive
Housing Markets
10 Biggest Publicly Traded Home Builders Undeterred by High Mortgage Rates
Together, the 10 biggest builders recorded 77,255 new homes in Q1 2024, an increase of more than 18% from Q1 2023