Real Estate 2024: Buffalo Tops Zillow’s Hottest Market List — How Much Do Homes There Cost?
Written by
Yaël Bizouati-Kennedy
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Nicholas Morine
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Buffalo, New York, will be the hottest market in 2024, according to a new Zillow report. The report is based on predicted home value growth, recent housing market velocity and projected changes in the labor market.
“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,” Anushna Prakash, data scientist for Zillow Economic Research, said in a press release. “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.”
According to Zillow, a typical home value in Buffalo is $248,445, and with a 5% down payment, the mortgage would be $1,792, according to the report. In comparison, the average United States home value is $346,048.
In addition, a typical rent in the city is $1,257, compared to the national median rent of $1,999.
“Buffalo’s forecast might seem a little surprising because home values have been low there for decades,” said Jason Sorens, senior research faculty at the American Institute for Economic Research. He added, however, that Buffalo has become an attractive destination for younger people because of its affordable housing.
“It got its ‘hottest housing market’ forecast from Zillow because it has added a lot more jobs than new homes,” he said, adding that Buffalo already has a lot of housing stock. “But the job market there is also a surprising source of strength, having a lot to do with proximity to research universities and growing trade with the Toronto, Ontario region. Buffalo was economically depressed for decades but is finally turning around.”
Sen. Chuck Schumer Discusses the ‘Semiconductor Superhighway’
Of note, in October 2023, U.S. Senate Majority Leader Charles Schumer announced the Buffalo-Rochester-Syracuse region had won the federal Tech Hub designation he created in the CHIPS & Science Act, “putting Upstate New York further on the road to becoming America’s semiconductor superhighway,” according to an announcement at the time.
Cincinnati, Columbus, Indianapolis and Providence rounded out the top five hottest markets, according to Zillow.
“These should stand out as strong in a housing market still buffeted by low inventory and relatively high mortgage rates and prices,” Zillow suggested.
Yet, while mortgage rates have come down significantly in recent weeks — after hovering around 8% — and projections for improved affordability and more homes for sale have become more common, the challenges that limited the U.S. housing market last year are unlikely to disappear entirely in 2024, Zillow noted.
Zillow’s ranking came on the heels of Buffalo being named the No. 1 city in America by Clever Real Estate.
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