Real estate activity has been on the rise for many years, and buyers and sellers alike have taken advantage of the opportunities available. As real estate markets continue to shift, 2023 is an ideal time to invest in the right market. Whether you're looking at local or regional trends, there are a few key areas to watch.
The real estate industry expects certain regions to outpace others. The South, Midwest, West Coast, and emerging markets are all expected to be top performers this year. Investors should keep an eye on these markets for potential opportunities.
This post will explore this year's top trending real estate markets and discuss why they are worth watching out for. Whether you're already familiar with these regions or new to the area, something here could benefit your real estate investment portfolio. So let's dive into the hottest housing markets of 2023.
The South Is Booming
The South is quickly becoming one of the hottest real estate markets in the US. With increasing population growth and a plethora of job opportunities, people are flocking to this region for affordable housing and more. Florida, Texas, and North Carolina are popular destinations for new homeowners and investors.
North Carolina has seen a 3.6% increase in its employment rate from January 2022 to January 2023, making it even more attractive for those looking for jobs and housing. Similarly, Texas has an incredibly low housing wage of $23, making it one of the most affordable states. This makes the South an ideal investment option for those looking to increase their real estate portfolio.
The Midwest Is on the Rise
If you're looking for an affordable and up-and-coming real estate market in the United States, look no further than the Midwest. While traditionally not known as a hotbed of activity, states like Ohio, Indiana, and Michigan are experiencing a significant resurgence in real estate.
The Midwest is attractive to potential homebuyers due to its affordability. In Ohio, for example, the typical home price is about $213,360—66% of the typical US price. With so much value in the region, it's no wonder this area is becoming increasingly popular among investors and homebuyers.
The Midwest's wide range of amenities and job opportunities makes it a desirable destination for potential buyers. With new businesses, restaurants, and educational institutions popping up across the region, there are plenty of things to do here. Plus, with its central location, the Midwest is becoming an even more attractive choice for those looking to move away from the hustle and bustle of larger cities.
The West Coast Continues to Perform
California, Washington, and Colorado are consistently some of the most popular real estate markets in the US. Each state has a strong economy and desirable locations that attract prospective buyers. In California alone, job growth is up 3.5% over the past year, while the average home value is $718,687 — about 1% over the past year.
Washington has seen a 6.1% increase in population from 2016 to 2021, further driving up home values.
The rising environmental concerns have made the region a hotspot for natural disaster preparedness and eco-friendly living, further increasing its appeal as a real estate destination.
Emerging Markets to Watch Out for
As the real estate market grows, some lesser-known markets are worth watching out for. These emerging markets offer opportunities for investors to capitalize on the hottest markets of 2023 without competing with larger, more established players.
1. Boise, ID
Boise City Metro is an up-and-coming real estate market worth watching. With a typical home value of $480,172 and expected to rise 1.9% between December 2022 to December 2023, this area provides plenty of opportunity for investors looking for value.
Boise is known for its excellent outdoor activities, such as skiing, hiking, mountain biking, and rafting in the nearby mountains. Plus, the city is home to some of the best universities in the region, making it a great place to live for students and professionals alike.
2. Greenville, SC
The charming city of Greenville, SC, is becoming an increasingly popular real estate market. With a median home listing price of $337,600 and the median price of $299K, this area provides plenty of opportunity for investors looking for value.
Greenville offers many reasons why investors will love it:
- Low income and property taxes
- Small-town living with great weather
- Thriving job market, especially in the medical and technology industries
- Excellent educational opportunities for both students and professionals
- Affordable housing options, making it attractive to first-time homebuyers
On average, homes in Greenville sell after 68 days on the market, making it an excellent option for investors looking to turn a profit quickly.
3. Nashville, TN
You can find a desirable real estate market in the US without looking far. Nashville, TN, is one of those markets that stands out. With an impressive appreciation rate of 10.88% annually over the past ten years and prices that tend to be higher than average due to high buyer demand, it's no wonder why so many investors are looking at Nashville as their next destination.
Home values in Nashville have been steadily increasing, and the city is an excellent option for homebuyers looking for affordability. The median listing home price in November 2022 was $489.9K, up 22.5% from the previous year. Additionally, the median listing home price per square foot was $289, making it attractive to first-time buyers looking to invest in a property without breaking the bank.
Of course, Nashville also has many other aspects that make it an ideal place to live. It's the hometown of country music and the birthplace of bluegrass, making it a great place to enjoy the culture offered in the city. Plus, there are plenty of outdoor activities, such as hiking and skiing in the nearby mountains.
4. Tampa/St. Petersburg, FL
According to Zillow, Tampa is experiencing a higher home price increase than the national average this year. The market boasts an impressive 18% appreciation rate, only 11% nationwide.
What's more, Tampa-St. Petersburg-Clearwater MSA has seen an increase of 214.3% in housing supply over the past year. This has resulted in bidding wars between buyers and investors competing to secure the available listings, often offering cash prices equal to or even higher than the asking price.
The real estate market in Tampa is booming due to a steadily thriving economy and increasing job opportunities. This has caused an influx of people moving to the city, making it one of the hottest housing markets in the US.
With more people seeking housing in Tampa, prices have increased significantly and are expected to continue. This makes it an ideal time for buyers and investors to capitalize on the price increases in Tampa's booming real estate market.
5. Cleveland, OH
Cleveland is becoming a sought-after city for real estate investors and buyers. With a projected change in owner-occupied households and job growth, the demand for housing will only continue to rise. This, combined with an expected home value growth, makes Cleveland more attractive to those looking to invest in the city's real estate market.
The manufacturing industry has also benefited from Cleveland's strategic positioning between the river banks and the shore of Lake Erie. This has resulted in a large number of employment opportunities, thus further increasing the demand for housing. On average, homes in Cleveland sell after 51 days, making it an ideal choice for investors looking to make a quick profit.
6. Raleigh, NC
Raleigh is quickly becoming a desirable location for luxury real estate. This growth has primarily been driven by the influx of Apple executives and employees in the area, with homes in Raleigh, North Hills, and Wake Forest in high demand. Prices for these properties start at $2 million, making them an attractive investment option.
A report from Deloitte has indicated that this trend will continue into 2023, causing a surge in luxury housing prices. The city of Raleigh and the Homebuilders Association of Raleigh and Wake County have also taken steps to ensure the future housing supply by introducing ordinances that make it easier for tiny homes and Missing Middle Housing to be constructed in residential neighborhoods. These measures are expected to take effect in 2022, making Raleigh an even more sought-after market for real estate investors.
Real Estate Opportunities Abound – Make the Most of Them
The real estate markets of 2023 are rife with potential for savvy investors. From the southern states to the Midwest and the West Coast to emerging markets like Cleveland and Raleigh, options are abundant for those looking to capitalize on their investments.
However, research and due diligence are essential before making any decisions. While these markets offer the potential for great returns, there are always risks involved in investing in real estate that must be considered.
With careful planning and research, you can make the most of available opportunities and maximize your profits. Get started now and make your real estate dreams a reality.
