The national U.S. median home price was up year-over-year by 2.2% in Q3 2023, according to the National Association of REALTORS®, and though nearly every major market experienced annual price growth, some cities’ home values accelerated at a more impressive rate than others. At the end of October 2023, 20 cities were determined to be the top emerging markets in the U.S. by the Wall Street Journal and Realtor.com®. The list was dominated by small-to-mid-sized cities and offers insight as to where homebuyers and investors might want to be looking in 2024.
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To better understand the conditions in these markets, Zoocasa analyzed the median home prices for the top 20 emerging markets and calculated the 1-year and 3-year price changes. Median home prices were sourced from a combination of the National Association of REALTORS® and individual real estate boards such as the Wisconsin REALTORS® Association, the Indiana Association of REALTORS®, and New Hampshire REALTORS®.
Price Growth is Strong in the Midwest
Four states monopolized the emerging markets list by having three or more cities included in the ranking: Tennessee, Wisconsin, Indiana, and Ohio. Many cities in these states offer buyers the perfect recipe for buying by having lower-than-average prices yet are experiencing growing demand which contributes to accelerating home equity growth.
Ohio in particular is at the epicenter of home price acceleration with four cities included on the list. Canton-Massillon, OH is the second most affordable city on the list and the most affordable in Ohio with a median home price of $199,800 in Q3 2023. The city has experienced 1-year price growth of 10.2% and 3-year price growth of 28.6%, though Dayton, OH overshadows it with 1-year price growth of 13.7% and 3-year price growth of 45%.
Topeka, KS topped the emerging markets list for affordability with a median home price of $199,600 in Q3 2023, though the city’s 1-year and 3-year price growth is moderate compared to others on the list at 5.7% and 36.3% respectively. In terms of annual price growth, the only West Coast city on the list, Santa Maria-Santa Barbara, CA, took the crown with 1-year price growth of 22.9%. Oshkosh-Neenah, WI followed with 1-year price growth of 15.2% and a median home price of $261,500 in Q3 2023.
Demand Heating Up in Tennessee
Midwestern cities fared well with annual price growth, but looking at 3-year price growth shows another rising performer. The top markets with the greatest 3-year price growth are all in Tennessee: Johnson City, Kingsport-Bristol-Bristol (TN-VA), and Knoxville. Johnson City, TN took the top spot with an impressive 3-year price growth of 59.4%, while Kingsport-Bristol-Bristol and Knoxville followed with 3-year price growth of 57.1% and 52.6% respectively. This rapid price growth is an indication of where housing demand is strong and means homebuyers in these cities will likely benefit from building more home equity at a faster rate. Of the three Tennessee cities, Kingsport-Bristol-Bristol offers homebuyers the most affordable price with a median home price of $261,800 in Q3 2023.
New England cities also fared well for one and 3-year price growth with three New England cities experiencing 3-year price growth of more than 40%. Concord, NH was the only New England city to experience 3-year price growth of less than 40%, however, the city’s median home price is $16,900 below the national median so it is still an attractive option for homebuyers. Hartford-West Hartford-East Hartford, CT is the only other New England city with a median home price below the national median at $375,100, while Worcester, MA-CT and Manchester-Nashua, NH have median home prices more than $49,000 above the national median.
If you’re preparing to enter the winter market, whether that’s through buying, selling, or both, it’s important to speak with a local realtor to learn about market conditions in your specific area. If you’re ready, give us a call today to speak with a qualified agent!
Methodology
Unless specified, median home prices for Q3 2023, Q3 2022 and 2020 were sourced from the National Association of REALTORS®. “Median Sales Price of Existing Single-Family Homes for Metropolitan Areas.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. 2023
The median home price for Elkhart-Goshen, IN was sourced from the Elkhart County Board of Realtors using data from Oct. 2023, Oct. 2022 and Oct. 2020.
For the median home price of Lafayette-West Lafayette, Tippecannoe County data from the Indiana Association of REALTORS® was used.
The median home price for Concord, NH was sourced from New Hampshire REALTORS®.
The median home price for Jefferson City, MO was sourced from Jefferson City Board of REALTORS®.
For Santa Maria-Santa Barbara, the median home price for Santa Barbara was used, sourced from the California Association of REALTORS®.
For the median home price of Janesville-Beloit, Rock County data from the Wisconsin REALTORS® Association was used.
Springfield, OH is represented by data from WRIST (Western Regional Information Systems and Technologies) which includes data for Clark, Miami, Champaign, Logan, Shelby, Auglaize and Mercer Counties.
