Zillow Names Buffalo Hottest City Of 2024

Buffalo, NY, is slated to be the hottest market of 2024 as affordable metros gain popularity among money-minded Americans.

Cincinnati and Columbus took numbers two and three on Zillow’s Hottest Markets of 2024 list, driving home the importance of savings for homebuyers this year.

The list is made up of relatively low-cost cities, primarily in the Midwest and South. Indianapolis, IN; Providence, RI; Atlanta, GA; Charlotte, NC (2023’s hottest city, now in 7th place); Cleveland, OH; Orlando, FL, and Tampa, FL, rounded out the top ten.

Zillow’s analysis looks at the 50 most populous metros and measures local home value growth and the speed at which home sellers are entering contracts with buyers, as well as job growth per new home permitted and growth in owner-occupied households.

Buffalo topped the list partly due to its booming job market, having the highest number of new jobs per new home permitted. New jobs mean new job hunters looking for a place to live.

At the same time, Cincinnati is seeing inventory get snapped up fast, while Columbus has the fastest expected rise in owner-occupied households.

“Housing markets are healthiest where affordable home prices and strong employment are giving young hopefuls a real shot at buying and starting to build equity,” said Anushna Prakash, data scientist for Zillow Economic Research.

“I’m cautiously optimistic that the housing market will get back on stable footing in 2024 — we shouldn’t see the massive price spikes of the early pandemic or fast-rising mortgage rates of recent years.”

Many analysts are cautiously hopeful that 2024 will bring better affordability. They see a mixed bag of softening rates and slightly more inventory, the beginning of a turnaround that won’t fully flower until 2025.

“Our 2024 housing forecast reveals the green shoots we’ve been waiting to see in the housing market and should give buyers some optimism after a grueling few years,” Danielle Hale, chief economist for Realtor.com, said.

Though the data suggests homebuyers may have better luck in 2024, it’s best not to hope for too much.

“In 2024, the housing market will not be pandemic hot, nor monetary-tightening cold, but it may not be quite right either,” Mark Fleming at First American Financial recently noted.