Residential activities are frequent take This year, however, concerns over housing affordability and fears of a recession have influenced seasonal trends. Mortgage rates have fallen sufficiently for housing transactions and construction activity, undulation As of February, these metrics looked weak in March. Many homeowners and renters are waiting for a possible recession to stay in place, while those looking to move are looking for more affordable areas.
As of January, almost 30% The total work done outside the home increased sixfold compared to pre-pandemic. In congested urban areas, the percentage is even higher. The availability of work-from-home jobs and the extremely high prices on the busiest subways are driving people to move. far away best ever. They are opting for smaller communities with more affordable housing prices and lower living costs to combat budget pressures, while aiming for booming, desirable locations that are not yet crowded with transplants.
quarterly magazine Wall Street Journal/Realtor.com Emerging Home Market IndexIt shows the most popular cities inundated with new homebuyers, announced in April. It is based on several indicators of economic health and quality of life, including supply and demand, affordability, median days on the market, and abundance of attractive amenities and high-paying jobs. increase. None of the emerging markets identified in the index are located in the western region, which is most notorious for housing prices. Instead, it’s in a small metropolitan area where first-time homebuyers can buy local home prices with local wages.
For example, Lafayette, Indiana tops the list with a March median list price that is about two-thirds of the national median. A major manufacturing center and college town, the city is close to both Indianapolis and Chicago. In 18 of the 20 emerging markets, the median list price was below the national median. Exceptions include Manchester, New Hampshire, an emerging market he is considered one. hottest housing market Knoxville, Tennessee currently tops national and US news lists best place to live.to both manchester and KnoxvilleRents are also rising sharply.
Top 20 promising real estate markets
These are the top markets to attract homebuyers in spring 2023, according to the Emerging Home Market Index and March 2023 median listed prices, population and unemployment rates.
rank | market | median suggested retail price | population | Unemployment rate |
---|---|---|---|---|
1 | Lafayette, Indiana | $289,000 | 224,709 | 2.8% |
2 | Bloomington, Illinois | $339,000 | 170,889 | 3.5% |
3 | Elkhart Goshen, Indiana | $275,000 | 206,921 | 3.2% |
Four | Lebanon, Pennsylvania | $372,000 | 143,493 | 3.1% |
Five | Fort Wayne, Indiana | $339,000 | 423,038 | 2.7% |
6 | Topeka, Kansas | $249,000 | 232,670 | 2.9% |
7 | Sioux City, IA-NE-SD | $305,000 | 149,365 | 2.6% |
8 | Omaha – Council Bluffs, Nebraska – Iowa | $345,000 | 971,637 | 2.4% |
9 | springfield, illinois | $144,000 | 206,898 | 3.9% |
Ten | Manchester Nashua, New Hampshire | $550,000 | 424,079 | 2.4% |
11 | Janesville, Wisconsin Beloit | $331,000 | 164,381 | 3.3% |
12 | columbus, ohio | $375,000 | 2,151,017 | 3.2% |
13 | LaCrosse Onalaska, Wisconsin, Minnesota | $334,000 | 139,211 | 2.4% |
14 | Johnson City, Tennessee | $413,000 | 208,068 | 3.4% |
15 | springfield, ohio | $172,000 | 125,622 | 3.8% |
16 | Hickory – Lenoir – Morganton, NC | $349,000 | 366,441 | 3.3% |
17 | Burlington, North Carolina | $368,000 | 173,877 | 3.6% |
18 | Columbia, Missouri | $367,000 | 213,123 | 1.9% |
19 | Waterloo – Cedar Falls, Iowa | $263,000 | 167,796 | 2.9% |
20 | Knoxville, Tennessee | $470,000 | 893,412 | 3.1% |
Conclusion for investors
For investors, this list of emerging markets is worth noting. An influx of homebuyers into the area could lead to higher home prices and rents. Additionally, most of these cities are still more affordable than the national median home listing price, offering beginners an opportunity to get into real estate investing while offering experienced investors a larger down payment. provide the opportunity to purchase at
However, the growing popularity of these markets does not necessarily protect them from falling prices in the event of a severe recession. And as always, it’s important to calculate the numbers for each individual deal to ensure you get the kind of cash flow you’re looking for. Still, if you’re particularly interested in the Southern and Midwestern regions of the United States, this list might be a starting point for your research.
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Note by BiggerPockets: These are opinions written by the authors and do not necessarily represent the opinions of BiggerPockets.