In the face of inflation and a cost-of-living crisis, home shoppers are searching for the sweet spot in underrated metropolitan areas offering lower living expenses, fewer people, and a stable local economy. Whether you’re planning to live or rent to others in a new location, Realtor.com’s index ranked the top emerging housing markets that could be contenders for your next move. Here's a look at the top 10.
How much buyers could save
Nationwide median housing prices have made a subtle decline of 0.9% in July 2023 versus the previous year, according to Realtor.com, but the drop does little to quell other cost concerns for potential buyers across major metropolitan cities in this high interest rate environment. Even with the decline in price, the median home price still stood at $445,000 in June and $440,000 in July.
At number 16 on the full list of 20 metropolitan areas, Akron, Ohio, offers the lowest median home price at $226,000. Compared to June’s nationwide median, that’s $219,000 lower in price. That’s a significant savings for buyers and investors who are tired of excessive listing prices.
Besides the substantial change in pace compared to bustling major cities, the trade-off for these deep cuts in price is slightly higher property taxes. The property tax in these areas sits above the U.S. national average by 1.2 percent.
Where do the buyers live?
A majority of the interest in these emerging markets is driven by people in the New York, New Jersey, and Pennsylvania metro areas at 28.2% of the cross-market demand for the second quarter. There’s also significant interest from the DC metro area, including Maryland, Virginia, and West Virginia at 7.8% of the demand.
Bottom line
Although the housing market has slowed to a crawl due to low inventory and high prices, buyers are adjusting by directing their home search to areas with lower home prices and solid local economies. Those who haven’t been deterred by higher mortgage rates could find significant savings in emerging housing markets as long as they don’t mind a slower-paced environment compared to major cities.
