As named by Zillow, Charlotte, North Carolina, will be the hottest market across the country in 2023, followed hotly by Cleveland, Pittsburgh, Dallas, and Nashville.
"This year's hottest markets will feel much chillier than they did a year ago," said Anushna Prakash [1], economic data analyst at Zillow. "The desire to move hasn't changed, but both buyers and sellers are frozen in place by higher mortgage rates, slowing the housing market to a crawl.”
“Markets that offer relative affordability and room to grow are poised to stand out, especially given the prevalence of remote work,” Prakash continued. “The good news for buyers is that monthly housing costs have stopped climbing. Home shoppers who can overcome affordability hurdles will find a more comfortable market this year, with more time to consider options and less chance of a bidding war, even if they're shopping in one of the hottest markets."
As predicted by Zillow, the 10 hottest markets of the year are predicted to be:
- Charlotte
- Cleveland
- Pittsburgh
- Dallas
- Nashville
- Jacksonville
- Kansas City
- Miami
- Atlanta
- Philadelphia
For the first time recently, fast-growing home values did not overwhelm other categories required for cities to make this year’s list of hottest housing markets. The current environment of higher rates and affordability challenges which have “chilled” demand and brough home values down from 2022 peaks.
Charlotte’s home growth value is expected to decline over the 11.8% growth rate seen in 2022. Both Cleveland and Pittsburgh ranked high in projections for time on market and new jobs per new home built.
Among the top-10 cities, only four return this year, an indicator of how much the housing market has changed in a year. For instance, 2021’s hottest market, Austin, has fallen to 29th on the list in 2023.
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