top up-and-coming real estate markets in 2024
Top up-and-coming real estate markets in 2024 require an understanding of various factors influencing the real estate industry. These factors include economic growth, housing supply and demand, job market strength, demographic trends, and technological advancements. Let’s explore some potential markets that are showing promising signs of becoming key real estate hubs in 2024.
1. Secondary Cities in the United States
Austin, Texas
- Economic Growth: Austin has been a hub for tech companies, fostering strong economic growth.
- Housing Market: The influx of new residents has led to a robust housing market, though affordability is an increasing concern.
- Tech Influence: Often dubbed as “Silicon Hills,” its tech-driven economy makes it a magnet for professionals.
Raleigh, North Carolina
- Job Market: Known for its Research Triangle Park, it offers abundant job opportunities in tech and academia.
- Demographic Appeal: Raleigh attracts a diverse population, including young professionals and families.
- Quality of Life: High quality of life with affordable housing options compared to other tech hubs.
As of December 2023, the real estate markets in Austin, Texas, and Raleigh, North Carolina, present distinct characteristics and trends:
Austin, Texas Real Estate Market
Market Dynamics
- Active Listings: Austin has seen a 24.7% increase in active home listings compared to October 2022, signaling more options for buyers.
- Sales Volume: There’s been a 6.3% increase in the total dollar volume of homes sold, indicating continued market activity despite other shifts.
- Home Prices: The median home price dropped by 7.5% to $435,000, reflecting a market correction and potentially more favorable conditions for buyers.
- Market Status: Although home prices are declining, there’s an increase in residential home sales (up by 4.1%), suggesting the market is transitioning rather than crashing.
Future Outlook
- Buyer’s Market Indications: The market is leaning towards a buyer’s market, with increasing inventory and declining prices.
- 2024 Prospects: Experts anticipate that 2024 could be a better year for homebuyers due to the combination of falling home prices and potentially lower interest rates.
- Overpricing Concerns: Despite the price corrections, Austin homes are still considered among the most overvalued in the U.S., with buyers paying significantly more than the expected prices.
Raleigh, North Carolina Real Estate Market
Market Performance
- Inventory and Listings: As of October 2023, Raleigh had 1,048 homes for sale and 491 new listings, reflecting a balanced market.
- Sale Prices: The median sale price was $409,000 as of September 30, 2023, with the median list price reaching $450,000 by October 31, 2023.
- Sales Dynamics: About 40.9% of sales were over the list price, indicating a competitive market.
Market Forecast
- 2023-2024 Outlook: The Raleigh MSA housing market is expected to see a modest change, with a slight decrease followed by a projected uptick by October 31, 2024.
- Market Appeal: Raleigh’s strong economy and robust tech sector continue to attract buyers, keeping the market dynamic.
Investment Perspective
- Rental Market: With a significant portion of the population renting, Raleigh remains an attractive location for real estate investment, especially in single-family homes and larger apartment complexes.
- Affordability Index: Raleigh’s affordability index is moderate, making it relatively expensive compared to other U.S. cities but still accessible to many buyers and investors.
Both Austin and Raleigh are witnessing significant real estate trends that are influenced by economic factors, housing supply, and buyer behavior. In Austin, the market is adjusting with price corrections and increased inventory, while in Raleigh, the market is balanced with a good mix of demand and supply. For investors and homebuyers, these markets offer diverse opportunities, but with unique challenges and considerations in each. Staying informed about the latest trends and forecasts is crucial for making strategic decisions in these dynamic markets.
2. International Markets
Lisbon, Portugal
- Investment Appeal: Increasing interest from foreign investors due to favorable tax policies.
- Tourism and Culture: A tourist hotspot, Lisbon’s rich culture and history continue to attract global attention.
- Real Estate Growth: Growing demand for both residential and commercial properties.
Bangalore, India
- Tech Boom: As the “Silicon Valley of India,” it’s a growing tech hub.
- Urban Development: Rapid urbanization and infrastructure development.
- Expanding Market: Increasing demand for housing from both local and expat communities.
3. Emerging Market Trends
Green and Sustainable Developments
- Eco-friendly Construction: Growing demand for sustainable and energy-efficient homes.
- Location Choice: Preference for locations with green spaces and eco-conscious communities.
Smart Cities
- Technological Integration: Cities that integrate technology in urban planning and infrastructure.
- Investor Interest: Attracting investors looking for innovative and future-proof real estate opportunities.
FAQ
Q: What makes a real estate market “up-and-coming”? A: An up-and-coming real estate market is typically characterized by rapid economic growth, increasing job opportunities, growing population, and a rising demand for housing. Such markets often offer attractive investment opportunities due to their potential for future growth and appreciation in property values.
Q: How do tech industries influence real estate markets? A: Tech industries can significantly impact real estate markets by creating high-paying jobs, attracting a skilled workforce, and fostering economic development. This, in turn, increases demand for housing and commercial spaces, often leading to higher property values and new development projects.
Q: Are international real estate markets a good investment in 2024? A: International real estate markets can be lucrative investments, especially in emerging economies or cities undergoing significant development. However, they also come with unique risks such as currency fluctuations, political instability, and different legal frameworks. Thorough research and local expertise are crucial.
Understanding these dynamic markets requires staying informed about global economic trends, local market conditions, and emerging technologies in real estate. For real estate professionals, being adaptable and knowledgeable about these evolving markets can provide a competitive edge in the industry.
Up and Coming Real Estate Markets 2024
Bill Brown
It's Nice to Share
Comment, Write a Blog Post, Create Groups, Get Seen!
Comments, Opinions and Facts Go Here...👇
## 1. Toledo, Ohio
- **Median Home Price (Nov 2023):** $200,000
- **2024 Forecasts:**
- Sales Change: +14.0%
- Price Change: +8.3%
- **Combined Sales and Price Change:** +22.3%
- **Key Insight:** 41.2% of homeowners own their homes outright, providing some insulation against mortgage rate fluctuations.
## 2. Oxnard-Thousand Oaks-Ventura, California
- **Median Home Price (Nov 2023):** $1,037,000
- **2024 Forecasts:**
- Sales Change: +18.0%
- Price Change: +3.3%
- **Combined Sales and Price Change:** +21.3%
## 3. Rochester, New York
- **Median Home Price (Nov 2023):** $239,000
- **2024 Forecasts:**
- Sales Change: +6.2%
- Price Change: +10.4%
- **Combined Sales and Price Change:** +16.6%
## 4. San Diego-Chula Vista-Carlsbad, California
- **Median Home Price (Nov 2023):** $995,000
- **2024 Forecasts:**
- Sales Change: +11.0%
- Price Change: +5.4%
- **Combined Sales and Price Change:** +16.4%
## 5. Riverside-San Bernardino-Ontario, California
- **Median Home Price (Nov 2023):** $585,000
- **2024 Forecasts:**
- Sales Change: +13.8%
- Price Change: +2.0%
- **Combined Sales and Price Change:** +15.8%
## 6. Bakersfield, California
- **Median Home Price (Nov 2023):** $385,000
- **2024 Forecasts:**
- Sales Change: +13.4%
- Price Change: +2.3%
- **Combined Sales and Price Change:** +15.7%
## 7. Springfield, Massachusetts
- **Median Home Price (Nov 2023):** $350,000
- **2024 Forecasts:**
- Sales Change: +10.5%
- Price Change: +4.2%
- **Combined Sales and Price Change:** +14.7%
## 8. Worcester, Massachusetts-Connecticut
- **Median Home Price (Nov 2023):** $475,000
- **2024 Forecasts:**
- Sales Change: +9.1%
- Price Change: +4.8%
- **Combined Sales and Price Change:** +13.9%
## 9. Grand Rapids-Kentwood, Michigan
- **Median Home Price (Nov 2023):** $390,000
- **2024 Forecasts:**
- Sales Change: +6.1%
- Price Change: +7.2%
- **Combined Sales and Price Change:** +13.3%
- **Key Insight:** Known for its affordability, strong job market, and vibrant quality of life.
## 10. Los Angeles-Long Beach-Anaheim, California
- **Median Home Price (Nov 2023):** $1,150,000
- **2024 Forecasts:**
- Sales Change: +9.2%
- Price Change: +3.5%
- **Combined Sales and Price Change:** +12.7%
---
### Key Insights and Wildcards:
- **Affordability:** Northeastern and Midwestern top markets are more affordable than the national average, offering a high quality of life with recreational, cultural, and educational amenities.
- **Southern California Trends:** These markets, particularly Oxnard, Riverside, Bakersfield, and San Diego, are expected to see an average sales growth of 13.1% in 2024, though they are more sensitive to mortgage rate changes.
- **Labor Market & Macroeconomy:** The strength of local economies, particularly in sectors like education, healthcare, manufacturing, and government, will significantly influence these markets.
- **Mortgage Rates:** The trajectory of mortgage rates, especially in California, will be crucial. A gradual easing to an estimated 6.5% by the end of 2024 is expected, which could impact sales growth.
### First-Time Homebuyers:
- Despite the challenging environment, a substantial percentage of first-time buyers believe in the feasibility of homeownership and are saving actively for it. FHA and VA loans are playing a significant role in assisting these buyers, particularly in areas like Bakersfield and San Diego.
#Real-Estate-Market #Hot-Markets