Temperatures might be dropping in Buffalo, New York—but the housing market is heating up. According to a recent report by Zillow, Buffalo is predicted to be the hottest housing market of the year.
Strong Economic Fundamentals and Stable Home Values
Zillow’s top markets for 2024 are selected based on their solid economic fundamentals, fast-moving for-sale housing inventory, plentiful potential buyers, and expectations for stable home values. After thorough analysis, Buffalo emerged as the top contender.
Emerging Cities in the Great Lakes Region
Interestingly, Zillow isn’t the only one placing a Great Lakes city at the pinnacle. Realtor.com ranked Toledo, Ohio, as the leading real estate market poised for both rising prices and increased sales this year. This assessment aligns with ‘s parent company, News Corp, which owns Realtor.com.
Overcoming Challenges from Last Year
Despite facing headwinds in the housing market last year due to high mortgage rates and a lack of available homes for sale, experts anticipate a more favorable landscape in 2024. As a result, several Midwestern cities and select northeastern locales have become forecasters’ favorites.
A Promising Forecast for the Midwest
The search for relative affordability is expected to drive another strong year in the Midwest. Compared to coastal markets, homes in this region are generally more affordable. Zillow senior economist, Nicole Bachaud, stated that smaller northeastern towns also appear to be a bargain compared to their larger neighboring cities such as New York City, Boston, or Washington, D.C.
With its strong economic foundations and stable home values, Buffalo, New York is primed to be the hottest housing market of 2024. The emerging cities in the Great Lakes region also show great promise for real estate growth and development. As the challenges from last year continue to diminish, the Midwest and select northeastern towns are attracting buyers with their relative affordability.
Affordable Home Values in Buffalo and Other Cities
Compared with home values nationally, Buffalo—along with runners-up Cincinnati, Columbus, and Indianapolis—stand out for their relative affordability, according to Zillow. Home values in these three metros are significantly lower than the rest of the nation. At just under $250,000, Buffalo’s typical home value is nearly 30% less than the national average.
A Promising Housing 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,” states Prakash from Zillow.
The company foresees the typical Buffalo home value dropping 0.2% in 2024, according to its metro-level forecasts. This projection aligns with Zillow’s forecast for 35 out of its largest 50 metropolitan areas, where home values are expected to decline. Nationally, prices are estimated to remain flat through November 2024, indicating stability in the housing market.
“I’m cautiously optimistic that the housing market will get back on stable footing in 2024,” adds Prakash. “We shouldn’t see the massive price spikes of the early pandemic or fast-rising mortgage rates of recent years.”
Varied Market Trends
Of the 50 largest metropolitan areas, values will increase the most in the Florida cities of Miami and Tampa, followed by Charlotte, North Carolina, with anticipated gains between 1.2% and 1.9%, according to Zillow’s forecast. On the other hand, values will drop most in San Jose, Calif.; New Orleans; and San Francisco, with expected declines between 4.8% and 6.1%.
Buffalo has more going for it than just relatively affordable home prices: it has the highest number of new jobs per new housing permit, which Zillow characterizes as an indicator of anticipated demand.
Additionally, homes in the Buffalo area, along with those in Cincinnati and Columbus, sell relatively quickly. Data from Zillow shows that homes in Buffalo spend an average of 14 days on the market, while those in Cincinnati and Columbus sell in 11 days—much quicker than the U.S. average of 21 days.