Realtor.com highlights affordable cities with plenty of upside potential
of ConsumerAffairsThe cost of housing is a significant financial challenge facing millions of Americans, but people who can work remotely, or who are ready to make a move, will have some affordable options in 2025.
Real estate website Realtor.com has compiled a list of the top housing markets that offer affordability as well as growth potential. The list emphasizes areas with moderately affordable homes, ample inventory bolstered by new construction, and a substantial population of younger families, many with military and international ties.
"While nationwide home sales are expected to see a slight uptick this year, driven by a cooling in home price growth, the top markets we've identified are poised for stronger sales and price gains in 2025," said Danielle Hale, chief economist at Realtor.com.
But right now, these housing markets are among the nations most affordable. Most, with some exceptions, avoided the huge price increases that occurred during the COVID-19 pandemic.
Here are the top 10, according to Realtor.com
|
Rank |
Cbsa Title |
2025 Existing |
2025 Existing |
2025 Existing |
2025 Existing |
Combined 2025 |
|
1 |
Colorado Springs, CO |
27.1 % |
-5.6 % |
12.7 % |
88.9 % |
39.8 % |
|
2 |
Miami-Fort Lauderdale-Pompano Beach, FL |
24.0 % |
-0.7 % |
9.0 % |
100.5 % |
33.0 % |
|
3 |
Virginia Beach-Norfolk-Newport News, VA-NC |
23.4 % |
24.5 % |
6.6 % |
57.3 % |
29.9 % |
|
4 |
El Paso, TX |
19.3 % |
1.3 % |
8.4 % |
71.1 % |
27.8 % |
|
5 |
Richmond, VA |
21.6 % |
31.7 % |
6.1 % |
68.8 % |
27.6 % |
|
6 |
Orlando-Kissimmee-Sanford, FL |
15.2 % |
32.1 % |
12.1 % |
82.6 % |
27.3 % |
|
7 |
McAllen-Edinburg-Mission, TX |
19.8 % |
18.4 % |
7.0 % |
47.5 % |
26.8 % |
|
8 |
Phoenix-Mesa-Chandler, AZ |
12.2 % |
19.1 % |
13.2 % |
76.1 % |
25.5 % |
|
9 |
Atlanta-Sandy Springs-Alpharetta, GA |
15.1 % |
-7.7 % |
10.2 % |
51.9 % |
25.3 % |
|
10 |
Greensboro-High Point, NC |
17.3 % |
11.0 % |
7.7 % |
51.6 % |
25.0 % |
Strong showing by Sun Belt cities
The Sun Belt's prominence is evident, with Texas, Florida, and Virginia, featuring multiple times in the top ten. Despite generally lower home prices, these areas face affordability challenges, with buyers spending about 31.1% of their income on housing, compared to the national average of 29.2%. McAllen, Texas, stands out as the most affordable, with living costs 13% below the national average, while Miami is the least affordable, with housing costs consuming 42.1% of income.
Flexible work arrangements are aiding buyers in these markets, with higher shares of remote or hybrid job postings in cities like Richmond, Atlanta, Phoenix, Colorado Springs, and Orlando. Realtor.com says this trend is expected to persist, helping navigate affordability challenges.
Inventory levels are also recovering, with November marking the highest number of homes for sale since December 2019. The South and West are nearing pre-pandemic inventory levels, driven by increased single-family home construction focusing on affordability. Despite this, new home listings have declined as existing homeowners re-enter the market, adding to the available homes for sale.
The top markets are also characterized by younger, diverse communities with strong military and international connections. These areas have a higher percentage of residents under 35 and families with children.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-12-12 15:26:35
