These 10 Cities Could Be the Hottest Housing Markets in 2024

Home sales plummeted this year as housing prices and mortgage rates climbed to historic levels — but a new report suggests certain real estate markets could rebound in 2024.

Select markets in the Northeast, Midwest and Southern California are primed for sales and price growth next year, according to real estate broker Realtor.com’s new forecast. Among the cities where residential real estate is likely to be hot in 2024 are smaller, more affordable alternatives to big urban centers.

Realtor.com ranked the largest U.S. metropolitan areas based on expected sales and price growth in the coming year. Here are the results.

Ads by Money. We may be compensated if you click this ad.Ad

Your future dream home awaits — Unlock your interest rate now

Unlock your interest rate now

Your Information

State

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

New Loan Typei

Not sure which loan type to choose? Go with a 30 Year Fixed Rate Loan, 90%+ of Americans do.

30 Year Fixed Rate Loan15 Year Fixed Rate Loan30 Year Fixed FHA Loan30 Year Fixed Veteran (VA) Loan7/6 Adjustable Rate Loan10/6 Adjustable Rate Loan30 Year Fixed Rate Jumbo Loan15 Year Fixed Rate Jumbo Loan5/6 Adjustable Rate Jumbo Loan7/6 Adjustable Rate Jumbo Loan

Loan Amounti

You can enter the mortgage loan amount, or the total home price if you have a downpayment.

$

I or my spouse have served in the military

Enables VA loan eligibility (0% down, no PMI)

Thank you for your service!

Your estimate reflects 0% down with no PMI.

Rate data provided by RateUpdate.com. Displayed by Mortgage Research Center, LLC, NMLS# 1907, Equal Housing Opportunity, Payments do not include taxes or insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and Product details

Disclaimer

×

Disclaimer

The information on the daily averages includes financial product data that was in the MRC database at the time of publication. The assumptions used to calculate the rates are as follows: Rates are based on a $315,000 for conforming loans and $850,000 for non-conforming loans of an owner occupied, single-family residence with an 80% loan-to-value ratio, and rate lock ranging from 30 to 60 days. Rates are available for consumers for fico levels starting at 620 and up to 850. Rates are subject to change without notice. Quotes are for "no-cash-out" loans. All quotes are for products or loans that can be sold on the secondary market with no prepayment penalties nor negative amortization. Home Equity: The information on the daily averages includes financial product data that was in the Curinos database at the time of publication. Home Equity Loans - Rates are based on a fixed rate home equity loan for an owner-occupied residence, second lien, 15-year or 10- year repayment terms with an 80% loan-to-value ratio, Fico range of 740 and above, with a maximum loan amount of $50,000.00 . Home Equity Line of Credit - Rates are based on a variable rate, second lien revolving home equity line of credit for an owner-occupied residence with an 80% loan-to-value ratio, Fico range of 740 and above with a maximum line of credit of $50,000.00. Contact mediasupport@mortgageresearchcenter.com to have your rates included in this chart.

Your Estimated Rate

6.6%

Estimated interest rate*

Money’s Methodology

*Based on the U.S. average rate for consumers with an Exceptional Fico score (780+) getting a conventional loan, no points, and a 20% down payment. Actual rates may vary. Click "View Rates" to contact Mortgage Research Center Mortgage Rates (NMLS #1907) for a more accurate quote.

Find your actual rate today!

View Rates

Where will homebuyers go in 2024?

Realtor.com anticipates the top markets in 2024 will fall into two camps: affordable midwestern and northeastern alternatives to expensive major cities, and western metropolitan areas that saw major declines in sales in 2023.

Surprisingly, half the cities ranked in the top 10 are in famously expensive California, including the Los Angeles and San Diego areas. That's because sales slumped in much of the Golden State in 2023. As the Federal Reserve backs off its rash of rate increases and mortgage rates start to decline, Realtor.com expects new inventory will allow some SoCal markets to rebound next year.

The midwestern and northern cities ranked by Realtor.com are expected to attract homebuyers for a few reasons, the biggest being that most boast median housing prices under the national median of $431,000. They have been somewhat sheltered from the impact of high mortgage rates because many homeowners in these areas have already paid off their loans, according to the report.

They offer a high quality of life for a lower cost, as well as proximity to major metropolises (like in the case of Worcester, Massachusetts, which is near Boston). Residents enjoy plenty of cultural amenities, recreational opportunities and quality schools, making them attractive for homebuyers looking for big-city features at small-town prices.

What’s more, many of these metros have robust job markets — unemployment in every midwestern and northeastern metro ranked except Toledo, Ohio, is expected to be at or below the forecasted national rate of 4.2% at the end of 2024.

Top 10 cities for expected sales and price growth in 2024

The following metropolitan areas are expected to see the biggest gains in sales and price growth next year, according to Realtor.com.

1. Toledo, Ohio
2. Oxnard/Thousand Oaks/ Ventura, California
3. Rochester, New York
4. San Diego/Chula Vista/Carlsbad, California
5. Riverside/San Bernardino/Ontario, California
6. Bakersfield, California
7. Springfield, Massachusetts
8. Worcester, Massachusetts/Connecticut
9. Grand Rapid/Kentwood, Michigan
10. Los Angeles/Long Beach/Anaheim, California

More from Money:

Top 10 Big Cities With the Most Affordable Home Prices Right Now

Home Sales Rise as More Sellers Cut Prices and Grant Concessions to Buyers

How Much House Can You Afford? Many Buyers Are Ignoring a Classic Rule of Thumb