These Are the 10 Best Cities to Buy a Home in 2024, According to a New Report

Abby Montanez
·3 min read
24

This year, the overall number of home sales dipped so low that it set a new record for the real estate market. However, a new report suggests that the tides may be turning in the year ahead—at least in certain cities. Realtor.com recently released its annual forecast, which predicts home sales prices and the number of existing home sales across the country’s 100 largest metropolitan areas. In its analysis, the real estate listing site was able to pinpoint where prices and sales are expected to grow the most in 2024.

“Now that we’re seeing the beginning of an affordability turnaround, home buyers are still looking for markets where they can capitalize on lower prices,” Danielle Hale, Realtor.com’s chief economist, explained to Business Insider. “Even in some of the more expensive markets, we’ll see double-digit sales growth as sales start to rebound from their historic lows, helped by mortgage rates, which are expected to finally relent.” Realtor.com’s outlook anticipates rates retreating to the mid-6 percent range, which would not only entice more buyers but also boost inventory and raise sales. “Seeing mortgage rates come back will be enough to kick-start buyer demand,” says Hale in the report.

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Interestingly enough, half of the cities that managed to crack the top 10 were on the West Coast, where housing affordability fell to a 16-year low in the second quarter of 2023. The five California metros that are predicted to rebound are all located in the southern part of the state and include Bakersfield and the Los Angeles/Long Beach/Anaheim areas.

2024 housing market predictions
Five markets in Southern California are predicted to surge in home sales and price gains in 2024.

Massachusetts landed not just one but two metros in the top 10. Specifically, the areas of Springfield and Worcester are attracting buyers because of their affordability compared to Boston. Springfield’s market is predicted to increase by 10.5 percent in 2024, while home sales are expected to rise 4.2 percent. In Worcester, Realtor.com anticipates 9.1 percent growth, with home prices escalating by 4.8 percent. “The market obviously is hot, but it is cooling down,” adds Massachusetts-based real estate broker Nick McNeil of McNeil Real Estate. Other markets that ranked among the top 10 include Rochester, New York, and Grand Rapids, Michigan.

Coming in as the No. 1 hottest housing market next year is—drum roll, please!—Toldeo, Ohio. Here, the market is expected to climb a whopping 14 percent, with an 8.3 percent increase in home sales. Surprisingly, it was one of only eight other metros predicted to see double-digit jumps in sales activity in 2024. Currently, Toldeo’s median home price clocks in at $200,000, which is way under the U.S. median home price of $420,000. “It’s less prone to the wild swings we’ve seen in other markets,” says Hale. “The highs weren’t as high and the lows weren’t as low—so that’s one of the reasons they’re going to start to recover first.”

The Top 10 Real Estate Markets of 2024

  1. Toledo, Ohio

  2. Oxnard/Thousand Oaks/ Ventura, California

  3. Rochester, New York

  4. San Diego/Chula Vista/Carlsbad, California

  5. Riverside/San Bernardino/Ontario, California

  6. Bakersfield, California

  7. Springfield, Massachusetts

  8. Worcester, Massachusetts/Connecticut

  9. Grand Rapids/Kentwood, Michigan

  10. Los Angeles/Long Beach/Anaheim, California

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