Yet again, Florida features in the latest list of the hottest real estate markets in the US this year. The property portal Zillow ranks two Sunshine State metros in its ranking, with the Jacksonville property market in sixth position and Miami in eighth. All metros in the top ten have four common denominators: strong price growth, solid economic fundamentals, relatively brisk sales and plenty of would-be buyers.
Hottest real estate markets this year
In its latest annual ranking, Zillow notes that the US housing market is forecast to continue to cool this year. However, the brakes on sales will have a more significant effect on some metros, while others will weather the storm with fewer negative outcomes.
The metros expected to fare best this year are all in the eastern half of the US, with two of the top ten in Pennsylvania and two others in Florida. Zillow forecasts that Charlotte in North Carolina will have the hottest real estate market in the US in 2023, with Cleveland, Pittsburgh, Dallas and Nashville completing the top five positions.
At the other end of the table, the coolest markets this year lie in California, with San Jose and Sacramento forecast to have the slowest performance. Minneapolis and Denver also feature in the bottom four. Zillow believes the quartet will experience price drops this year and more stagnant market conditions.
Prices in the hottest real estate markets in the US
Price performance ranks as one of the fundamental aspects in the Zillow research, although not all markets in the top ten will experience growth in 2023. Charlotte has the top position because of its significant home value growth forecast this year. However, prices in Pittsburg are expected to fall.
In Miami, this year’s eighth hottest real estate market in the US, prices are forecast to remain on a moderate trajectory. Jacksonville should see slight price gains, while Tampa will continue to occupy its position at the top of the price hikes table.
Demographics
Gauging a property market’s performance always involves demographics, an essential factor in predicting demand for housing in an area. Zillow highlights two generations, baby boomers and millennials. Between them, they represent a significant proportion of the US population and by extension, two large groups of homebuyers.
The research highlights two aspects of these generations. Firstly, baby boomers remain active in the property market as they grow older, particularly downsizing and relocating to warmer climates. Not for nothing do Florida metros attract a high proportion of newly-retired buyers from the cooler states in the northeast. Secondly, millennials are emerging as one of the most active population segments for property purchase.
As a result, Austin tops the list for new homebuyers in this year’s hottest real estate markets in the US. This metro expects to welcome 8.1% new homeowning households this year. Charlotte stands in second place, with a 6% increase and Jacksonville is in third, with 5.7% more.
The PWC Emerging Trends in Real Estate in 2023 also ranks Jacksonville as one of the markets to watch this year. It specifically highlights Jacksonville as a one of the ‘Supernova Metros’. Tamp and Miami also made the top seven picks for Super Sun Belt Metros.
(Source: Zillow)
