Where Are the Best Cities To Buy a Home in 2023? (Hint: They’re All Down South)

Couple embracing in the living room and holding keys of their new home.
bernardbodo / Getty Images/iStockphoto

A combination of factors — including soaring mortgage rates, inflation and short supply — made becoming a homeowner a difficult path for many Americans in 2022.

See: 2023’s Housing Correction Could Be the Largest Since Post-WWII
Read: 3 Things You Must Do When Your Savings Reach $50,000
Find: 40 Cities That Could Be Poised For a Housing Crisis

The National Association of Realtors (NAR) added that as rents have increased as well, it’s also difficult for potential first-time buyers.

“Existing-home sales have experienced the most prolonged slump in history, returning to 2011 levels near 4.4 million homes,” NAR’s 2022 Profile of Home Buyers and Sellers reported. The share of first-time home buyers “shrunk to all time-lows at 26% in 2022 from 34% just a year ago,” the NAR report detailed.

Yet the housing market may turn around in 2023, as contract signings fell slower than the previous month, mortgage rates have likely peaked and rates are finally moving down as inflation cools.

Take Our Poll: Are You In Favor of More Inflation Relief in 2023?
More: More Younger Americans Have Been Able To Buy Houses Because of the Student Loan Payment Pause

Here are the best markets to buy a home in 2023, according to the NAR. Several criteria were considered, including home affordability, job growth, migration gains and housing supply. Interestingly, all following markets are in the South, and their median home prices come courtesy of CNBC:

  • Atlanta-Sandy Springs-Marietta, Georgia: median home price of $371,200.
  • Raleigh, North Carolina: median home price of $460,500.
  • Dallas-Fort Worth-Arlington, Texas: median home price of $390,100.
  • Fayetteville-Springdale-Rogers, Arkansas-Missouri: median home price of $328,400.
  • Greenville-Anderson-Mauldin, South Carolina: median home price of $335,400.
  • Charleston-North Charleston, South Carolina: median home price of $416,800.
  • Huntsville, Alabama: median home price of $327,500.
  • Jacksonville, Florida: median home price of $398,000.
  • San Antonio-New Braunfels, Texas: median home price of $342,700.
  • Knoxville, Tennessee: median home price of $331,100.
Building Wealth

More From GOBankingRates

Share This Article:

facebook sharing button
twitter sharing button
linkedin sharing button
email sharing button
Building Wealth

About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
Learn More

BEFORE YOU GO

See Today's Best
Banking Offers

1pximage