Buffalo, New York, and Cincinnati, Ohio, are poised to have the hottest major housing market in 2024, according to a newly released report.
Despite being known for having long, harsh winters, Buffalo charged to the top of the list of the 50 "hottest" markets of 2024 due to the affordability of homes in the area, per a new analysis from real estate marketplace Zillow.
The company also noted that Buffalo topped the list due to the city having the highest number of new jobs being created in the city per new homes being permitted and built.
"Among the front-runners, Buffalo has the highest number of new jobs per new home permitted - a measure of expected demand. New jobs often mean new residents, which increases competition and drives prices up unless new construction can match that additional demand," the report read.
In addition, Zillow added that homes in Buffalo are valued at $248,445, which is significantly lower than the national average of $347,415. Buyers who put in a 5% downpayment on a typical house in Buffalo would have a mortgage of $1,792. In comparison, renting homes in the city costs an average of $1,257 a month.
Other Housing Markets on the List
Behind Buffalo in this year's rankings are the cities of Cincinnati and Columbus in Ohio, where Zillow predicts the "fastest expected rise in owner-occupied households, an indication of family formation and population growth."
The typical value of homes in Cincinnati is $270,826, with mortgage payments averaging $1,959 on a 5% down. In Columbus, home values are currently at $301,138, with monthly mortgage payments at $2,177 on a 5% down.
Other cities that made the list include Indianapolis, Indiana; Providence, Rhode Island; Atlanta, Georgia; Charlotte, North Carolina; Cleveland, Ohio; Orlando, Florida; and Tampa, Florida.
Charlotte had been Zillow's hottest market for 2023 before it fell to the seventh spot. Cleveland and Atlanta were also among last year's top 10 real estate markets.
The company said the list was formed after it analyzed the local home value growth of each city and the speed at which home sellers are entering contracts with potential buyers. Other factors considered in the study include the expected home value appreciation from December 2023 to November of this year, new jobs per new homes permitted, and growth in owner-occupied households.
