Here are the 10 hottest housing markets in 2024

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The top 10 hottest housing markets are expected to be spread across the South, Northeast and Midwest this year, according to an analysis by real estate marketplace Zillow. But a “hot” market isn’t always great for would-be buyers.

Buffalo, New York, made the top of the list, as the area is slated to see increased job growth compared with the number of approved construction permits for new homes.

“In markets where you’re going to have a ton more job creation than there is housing supply, you’re likely going to see homes move faster, stronger home value appreciation,” said Orphe Divounguy, a senior economist at Zillow.

The list is based on an analysis of home value appreciation, how long it takes to sell a home and job growth relative to housing supply. That’s important information that can help you decide where you may want to look for a home — and places you may want to avoid.

What a ‘hot’ market means for buyers

Where the housing market is cooling

Meanwhile, home values are expected to decline this year in the “coolest markets,” or places that will be less competitive. These places are New Orleans; San Antonio; Denver; Houston; and Minneapolis.

“It’s a matter of affordability as well; if a market has gotten less affordable … you’re likely not going to see that type of heat in the market,” Divounguy said.

Denver, for instance, was a popular attraction for homebuyers during the pandemic, but it has turned into an area where affordability was constrained.

“Denver had a massive population flow,” Lautz said. “Finding the new Denver will be important to buyers.”

Millennials will also be major buyers; most are in their prime homebuying age and some have reached their peak earning potential.

Unlike baby boomers who are looking for favorable areas to retire, this cohort may be seeking employment opportunities or the ability to work remotely in new areas.

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