Science

These 10 US cities offer homebuyers the most bang for their buck

The rising cost of homes in the nation’s metropolitan areas is forcing buyers to look elsewhere for cheaper options — particularly in mid-sized cities in the South and Midwest.

places like Chattanooga, Tennessee; Grand Rapids, Michigan; And Louisville, Kentucky, could soon become the nation’s hottest housing market, according to Realtor.com, as home prices are expected to climb next year.

The real estate listing firm also expects prices to rise in places like Columbia, South Carolina; El Paso, Texas; and Toledo, Ohio, as buyers move out of big cities — but who can now work remotely because of the pandemic — look for more affordable places to live.

Daniel Hale, chief economist at Realtor.com, told CBS MoneyWatch, “If you have a remote job that you can take with you, it might make sense to move there because you’ll be able to stretch your real estate dollars further.” will see.” ,

Here’s what Realtor.com expects to be the hottest housing markets around America next year, along with the cities’ median home prices as of November and how much they’re expected to rise in 2023:

  • Augusta, Georgia – $319,000, 5.7%
  • Buffalo, New York – $240,000, 6%
  • Chattanooga, Tennessee – $397,000, 8.2%
  • Columbia, South Carolina – $300,000, 3.6%
  • El Paso, Texas – $291,000, 5.4%
  • Grand Rapids, Michigan – $358,000, 10%
  • Hartford, Connecticut – $372,000, 8.5%
  • Louisville, Kentucky – $290,000, 8.4%
  • Toledo, Ohio – $161,000, 6.7%
  • Worcester, Massachusetts – $447,000, 10.6%

The Midwest in particular is expected to attract more first-time home buyers next year as people look for value, according to Zillow.

Zillow said last week, “Having homes available to choose from is another important component of a healthy market, and the Midwest stands out.” “Inventory is not in a hole as large as in pre-pandemic times and declines in new listings are below the national average – encouraged by more consistent demand from buyers.”


The Fed is expected to raise interest rates again, which could hit the housing market

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“major destination”

three cities in the Northeast – Buffalo, New York; Hartford, Connecticut; and Worcester, Massachusetts — also made Realtor.com’s hot markets list. Those locations historically haven’t been prime spots for Americans to buy a new home, Hale said, but for anyone looking to get the biggest bang for their buck, these areas are “the ultimate destination for home shoppers.” are about to appear on the U.S. radar.”

While people in high-paying tech jobs have helped drive trends in the housing market in recent years, workers in health care, education, manufacturing and the public sector are also taking a dive. Places like El Paso, Hartford and Toledo have a growing number of manufacturing or government jobs, Hale said.

Hale said Hartford is particularly attractive because of the growing number of education-related jobs.

“And the fact that it’s between New York and Boston gives people options,” Hale said. “So, in a year it’s going to be somewhat uncertain in terms of the economy, [Hartford] Opens up two potential job markets for someone.”

The median home price in Hartford was $372,000 in November, but that figure is expected to rise 8.5% next year, Realtor.com estimates.

El Paso has thousands of government jobs, several Border and Customs Department roles and the military base Fort Bliss, Hale said. The region’s unemployment rate is expected to continue declining next year, adding more than 474,000 new jobs in the construction, health care and financial sectors, according to a University of Texas at El Paso forecast.

Expect prices to keep going up

The US housing market is set to turn the page on 2022, a year that saw skyrocketing home prices and rising mortgage rates, cities such as Austin, Texas; Boise, Idaho; and Phoenix, Arizona were among the hottest markets in 2021 and for most of this year. Those markets have started to cool off as buyers take the edge off rising mortgage rates.

It’s common for house prices to drop at the end of the year, but Prices to climb in top 100 markets again in 2023, Hale predicted.

Still, the pace of those price increases is likely to be slower than the blistering growth of the past two years. Hale said prices will rise during the first half of 2023, but are likely to fall or remain stable during the second half of next year.

Realtor.com also expects mortgage rates to climb even further early next year as the Federal Reserve continues to raise its benchmark interest rate. The company said mortgage rates could reach 7.4% in the first half of 2023, falling to around 7.1% in the second half of the year.

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