Sizzling in 2024: The 9 “Hottest” Housing Markets

Even though 2023 home sales dropped to near-record lows, some real estate markets didn’t get the memo. These particular housing markets kept growing, increasing their home sales and median prices despite the overarching affordability challenges. It’s setting them up as 2024’s “hot” real estate markets.

What it takes to be a “hot” market

Take Denver, which topped the 2024 housing market index published by US News and World Report. A low unemployment rate and increasing population kept homes flying off the market in 2023. They pushed up its median prices above the national average. It proves that housing market growth in 2024 is possible if the local economy has the right fundamentals. 

Those fundamentals are:

• an already strong job market with low unemployment and anticipated expansion
• living wages that can keep pace or stay above inflation
• a high quality of life that encourages people to move there
• affordable housing 

Experts expect affordability to remain a key driver in sales activity, so areas where homes are priced competitively are more likely to experience higher sales and pricing increases. It’s a motivator behind why people are moving towards more mid- and small-size cities. These communities are at the intersection between high quality of life and affordability. 

All those fundamentals position the South and Midwest as big growers in 2024. Both regions possess strong economic centers and housing markets below the national median prices. 

In picking our choices for 2024’s hottest housing markets, we looked at which have these economic indicators. The markets chosen stand out in a particular area, such as having high pricing growth throughout 2023 (a sign of demand) or a high number of closed sales. They may have experienced some of the highest migration rates or the most economic growth. Keep your eye on these cities for 2024.

Toledo, Ohio

By one projection, Toledo’s sales activity will increase 14% during 2024–on top of an 8.3% bump in its median sale prices. This Midwestern city on the Ohio-Michigan border ticks many boxes, starting with homes priced at a median $143,750 in 2023.

Its economic prospects are also turning a corner. Unemployment is tracking with the US rates, while its economic development council is touting its strategic location to attract new businesses. US News and World ranked it the 19th best place to retire in the nation because of its high affordability. 

Buffalo, NY

This northeastern market stands poised for growth based on early economic indicators. By one estimate, it’s the city most likely to be the hottest in the nation in 2024. 

Housing permits are way up, but that hasn’t shrunk the available number of jobs available. Buffalo has been designated a federal technology hub, and billions are slated to pour into the area to build semiconductor manufacturing facilities. Read: highly skilled, highly technical work that will boost its workforce and income. Thanks to two colleges and a large medical campus, that talent expansion is on top of an already educated workforce.

Local housing is already relatively affordable at an average value of $248,445. For January 2024, regional home prices were already at $225,250, up 4.8% from the prior year.

Tampa-St. Petersburg

Tampa’s projected sales growth metrics are down, but that’s deceptive in this affordable Gulf Coast city. It persistently has a strong economy, one robust enough to rank seventh in the nation for 2023. Overall, the Milken Institute ranked the Tampa Bay Area eighth across all economic factors. That combines job creation, wage growth, technology, and the economy. 

Houses sell quickly in the Tampa region, too, at a median of 24 days on the market. And while its home values are aligned with the national going rate, consider what you get for buying a home here: miles of waterfront access, a vast shopping and entertainment scene, and world-class museums. Infrastructure-wise, it has some of Florida’s top hospitals and quality schools. 

Myrtle Beach-Conway

Myrtle Beach metro reported an incredible 16% increase in sales activity for 2023. With a median home price of $373,500, it’s an ideal place to live between its warm and mild climate, vacation amenities, and high quality of life. 

Another reason not to count the Myrtle Beach housing market out? It was one of the fastest-growing cities in the nation, with a net migration of 4.46%. Some of that may be its popularity as a retirement destination. The nation is aging, after all, and the city’s median age of 49.4 matches up with that. 

However, it’s not necessarily a retirement-forward city. Its “prime workforce” rank in the Miliken Study placed Myrtle Beach second in the nation. That metric reflects how the city’s emerging workforce was one of the most prepared for their careers and its high concentration of STEM workers. 

On top of the economic factors, Myrtle Beach’s high quality of life ranked 18th in the nation by US News and World for 2023-2024. 

Worcester, MA

Sales are projected to increase 9.1%, accompanied by sales price growth of 4.8%. Prices are higher than the national median here–$475,000 in November 2023–but the high quality of life balances that out. Locals like “Wormtown” for its combination of eclectic neighborhoods, college districts, art districts, and an underground music scene. 

Worcester is about an hour west of Boston. Its population is encroaching on one million people, adding 14% more people in the last Census count. And it’s still growing, which is why it could be a “hot” housing market in 2024. Location is a definite perk, as it has way more affordable housing than Boston, but you can still get into Beantown when desired. 

Miami, FL

Even though Miami is one of the more expensive housing markets on this list, the international hub remains a top contender for market growth. Its economy remains strong, driven by its Latin American commerce markets and vacation appeal. A Milken Institute study ranked Miami fourth in the nation for its economic growth and activity in 2023. In terms of core economic indicators, it jumped up to second.

Prices are projected to grow 5% in 2024, and sales in the metro might increase by 3.8%. Miami leans heavier on the condo market to accommodate its population growth.

El Paso, TX

Texas was the top state people moved to in 2023, so some Texas cities should be on the radar as a hot market. El Paso, the state’s sixth largest city, makes the cut. In 2023, its sales prices jumped by 15.2% to a median $244,500. El Paso also has high projected sales growth–6.35%– and a 4.8% increase in its home prices for 2024.  

Economically, it ranks among the top 20% in terms of growth and performance. That’s helped by the state’s business-friendly environment and being at the center of a large manufacturing region called the “Borderplex.” Even though it’s a border city, Advisor Smith ranked El Paso the third-safest large city in 2021. 

Oxnard, CA

Even though California’s housing prices are driving out-migration, some California cities are still desirable places to live. In one projection by US News, Oxnard’s sales activity could accelerate as much as 18%. Sales price growth is more moderate at 3.8%, which makes sense given its November 2023 median home price of $1.037 million. 

A Naval base stabilizes this southern California region in Ventura County. Residents love living close to an expansive, wide oceanfront with free beach parking. Plus, there are many community events, from steampunk festivals to plays at the performing arts center. This adds to Oxnard’s high quality of life and why people want to live in this residential community.

Rochester, NY

Another northeastern entry, Rochester’s sales prices could increase as much as 10.4% this year. Sales activity will also be above average at 6.2%. Affordability is the main story here, as Monroe County had a median home price of $235,616 across 2023–up 11.9%. Demographia ranked Rochester as the nation’s third-most affordable city for housing in 2022.

It’s clear Rochester homes are in high demand, as the county had a median seven days on the market. Homes typically received 15% above their list price in 2023. 

Like Buffalo, Rochester stands to benefit from billions in federal investments. It already earned accolades as having one of the best business climates and most innovative cities. These investments build on the foundation of a city already strong in tech jobs and manufacturing. 

Add to that an easy commute, quality schools, and many community recreation options, and it’s easy to see why someone might want to live in Rochester.