22 Southern Cities on the Verge of Becoming Unaffordable by 2025
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The Southern United States has long been celebrated for its affordability, charm, and economic opportunities. However, recent trends suggest that affordability may soon be a thing of the past for many of its key cities. According to a 2023 study by Moody’s Analytics, home prices in numerous Southern cities rose by over 40% between late 2019 and mid-2023.
This surge has been particularly pronounced in states like Texas, Florida, and North Carolina, where rapid population growth has outpaced housing and infrastructure development. Below are 22 Southern cities at risk of soaring costs and the factors driving these changes.
Nashville, Tennessee
The city of Tennessee that’s known for its energetic entrepreneurial scene and iconic music is one of the fastest growing in the South, namely, Nashville. Flooded with people who flock to the city to enjoy its bustling culture and job market, over 86 new residents flock to the city daily, The Tennessean reports. The result has been a 28% rise in rental prices between 2019 and 2023.
Housing demand has outpaced supply, leading many residents to simply not be able to afford the sky high cost of housing. Nashville has been an economic powerhouse lately, but the music city is about to face an affordability crisis. By 2025 this thriving hub risks becoming less accessible to middle- and low-income residents, if housing development does not manage to stay ahead of population growth.
Charlotte, North Carolina
Charlotte has become a magnet for corporate relocations, with many major companies establishing operations in the city. This economic growth has brought an influx of new residents, driving demand in the housing market. Zillow reports that median rent in Charlotte increased by 23% in just two years as competition for homes and apartments intensifies.
The city is growing quick enough and developers are building more housing, working to improve the balance, but it’s a difficult job. Without housing development that meets current demand, Charlotte runs the risk of becoming increasingly unaffordable to those who will not be working in its expanding corporate sector.
Orlando, Florida
Orlando, known for its thriving tourism sector as well as its growing tech sector, has a lot to show for rising economic growth. But wages in those industries frequently lag behind the rising price of living. Indeed for Apartment List, rents jumped 19% over the course of 2023 in Orlando, leading to a gap between income and housing costs.
As more people move to Orlando for work opportunities or to enjoy its warm climate, the housing market remains under pressure. Without intervention, many residents may find it increasingly difficult to maintain financial stability in the face of these rising costs.
Tampa, Florida
Tampa has a lovely waterfront and warm weather, which explains why so many retirees, remote workers and families have flocked to the city. Housing prices have soared 50 percent in the last five years, according to the Tampa Bay Economic Development Council, driven by high demand for limited inventory.
It’s hard enough for longtime residents trying to keep up with the rising costs, especially for those on fixed incomes or low wages. Tampa’s affordability challenges underscore the urgent need for policies that expand housing supply and protect vulnerable populations from displacement.
Dallas, Texas
Dallas stands out as a major hub for Fortune 500 companies, attracting a growing workforce to the city. Thanks to this influx of new residents, housing demand has never been higher. Rent in Dallas hit a median of $2,025 in November 2023, a steady climb that heaps affordability pressure on lower income families and individuals outside of corporate sector.
As Dallas expands, city leaders face increasing pressure to create housing options that exist across a range of income levels, so the prosperity of the city can be shared by all.
Houston, Texas
Houston’s position as a corporate, energy, and medical hub has made it one of the most dynamic cities in the South. However, the Houston Association of Realtors reports that home prices have risen by 25% over the past three years, driven by limited housing inventory and growing demand.
While Houston’s economy continues to attract new residents, the lack of affordable housing threatens to exclude many from the city’s opportunities. Policies to encourage equitable housing development will be essential to preserve Houston’s accessibility and diversity.
Raleigh, North Carolina
Raleigh has become a hotspot for tech and research industries, earning a reputation as a hub of innovation. However, as the city has rapidly grown, rental costs have risen 24 percent from 2020 to 2023, the Government Accountability Office said.
A huge problem exists for new graduates, young professionals, and lower-income workers seeking affordable housing. In order for Raleigh to remain available to all, Raleigh’s leaders must take a strategic approach to urban planning and increase affordable housing initiatives.
San Antonio, Texas
San Antonio has traditionally been considered one of Texas’s more affordable major cities, but this is beginning to change. The San Antonio Board of Realtors reports a 34% increase in home prices over the past four years, with rental rates following a similar trajectory.
As the city grows, rising costs could diminish its reputation as a budget-friendly destination. Proactive measures to address affordability will be necessary to preserve San Antonio’s appeal and inclusivity.
Miami, Florida
Due to Miami’s reputation of being a cultural and financial powerhouse it has become one of the most expensive cities in the South. The median rent prices rose 45 percent from 2020 to 2023, making for a crisis in affordability, according to Zillow.
Rising housing costs are occurring at such a rapid pace that they risk displacing longtime residents and becoming a barrier to entry for newcomers to Miami. Comprehensive housing policies will be vital to curbing these trends and preserving the city’s diverse character.
Jacksonville, Florida
As a result of Jacksonville’s prime location, increasing remote workers, and the technology industry, the housing demand is on the rise here. Though Florida metros continue to be more affordable than other parts of the country overall, housing costs have risen sharply in the city, with concern now for what lies ahead for affordability.
The pressure on housing availability has particularly impacted longtime residents, as rising costs threaten to push many out of historically affordable neighborhoods. Proactive measures, such as zoning reforms and increased housing construction, will be necessary to prevent further displacement.
Fort Worth, Texas
Fort Worth has gained popularity for its proximity to Dallas and relatively lower cost of living, but those advantages are diminishing. RentCafe data indicates rental prices have surged nearly 25% in the last three years as more people relocate to the area.
The city’s leadership faces a critical challenge: balancing the needs of incoming residents with the preservation of affordability for existing communities. Expanding housing options will be key to ensuring that Fort Worth retains its appeal.
Charleston, South Carolina
Charleston’s coastal beauty, historic architecture, and thriving tourism industry have driven up housing costs significantly. A 36% rise in median home prices since 2019 has strained the budgets of longtime residents, many of whom are unable to compete with wealthier buyers seeking luxury homes.
City planners must prioritize inclusive housing policies to counteract rising costs and ensure that Charleston’s charm and accessibility remain intact for people across all income levels.
Birmingham, Alabama
Birmingham remains one of the more affordable cities in the South, but that status is rapidly changing. Revitalization efforts in its downtown area, coupled with an increasingly vibrant cultural scene, have driven up housing prices by 25% since 2020, according to Zillow.
Although Birmingham’s growth is a positive sign of economic vitality, unchecked increases in housing costs could undermine its affordability, disproportionately affecting lower-income residents.
New Orleans, Louisiana
New Orleans has long been a desirable destination for its rich culture, music scene, and unique architecture. However, the popularity of short-term vacation rentals has exacerbated housing shortages, driving up rental prices by 22% in just three years, according to Apartment List.
The city faces an urgent need for housing policies that balance tourism with the needs of local residents. Expanding affordable housing options is crucial to maintaining New Orleans’ vibrancy and inclusivity.
Richmond, Virginia
Richmond is an up and coming hotspot for young professionals and remote workers because of their combination of historic charm and a growing arts and culinary scene. Home values have risen 28 percent from 2019 to 2023, pointing to the city’s growing desirability.
This surge is a challenging proposition for the novice homebuyers and renters. If Richmond does not make targeted efforts to increase affordable housing, it runs the risk of pricing out the residents that make its creative, entrepreneurial energy possible.
Chattanooga, Tennessee
Chattanooga’s scenic backdrop, strong outdoor recreation culture, and growing economy have made it an increasingly attractive place to live. However, Rent.com reports that rent costs have risen by 30% over the past three years, creating affordability concerns for many residents.
As the city continues to grow, maintaining a balance between economic expansion and housing affordability will be critical for long-term stability and inclusivity.
Savannah, Georgia
Savannah’s historic charm and thriving tourism industry have driven up housing prices by 21% since 2020, as reported by Zillow. While the city remains a cultural and artistic haven, rising costs are making it less accessible for young professionals and families.
City leaders must address the growing disparity between wages and housing costs to ensure that Savannah remains a vibrant and welcoming community.
Little Rock, Arkansas
Little Rock has seen steady economic development, particularly in the tech and healthcare sectors, which has brought new residents to the city. Realtor.com reports an 18% rise in housing costs over the past three years, adding financial pressure on longtime residents.
To maintain its appeal as a livable and affordable city, Little Rock must adopt policies that encourage sustainable housing growth while protecting its existing communities.
Greenville, South Carolina
Greenville’s economic success, driven by a robust manufacturing sector and a growing tech industry, has led to a 30% increase in housing prices over four years, according to The Greenville Journal. The city’s revitalized downtown and quality of life continue to attract new residents, driving up demand for housing.
To maintain its momentum, Greenville must invest in affordable housing initiatives to ensure that economic growth does not come at the expense of affordability for its residents.
Atlanta, Georgia
Atlanta’s thriving economy, diverse population, and cultural prominence have made it one of the South’s most dynamic cities. However, housing prices have risen by 60% over the past decade, according to RealWealth, posing a significant challenge for middle- and lower-income residents.
With a shortage of affordable housing initiatives, Atlanta faces growing pressure to address affordability concerns. Failing to act could jeopardize the city’s ability to remain accessible to a wide range of residents.
Austin, Texas
Austin’s rapid rise as a tech hub and cultural hotspot has driven median home prices up by a staggering 58% between 2020 and 2023, according to the Austin Chamber of Commerce. The city’s population surged by 33% from 2010 to 2020, creating significant demand for housing.
This sharp increase has displaced many longtime residents and raised concerns about the city’s ability to preserve its diversity and artistic heritage. Expanding housing inventory and adopting affordability measures will be critical for Austin’s sustainability.
Lexington, Kentucky
Lexington has emerged as an attractive city for entrepreneurs and families due to its mix of urban amenities and access to Kentucky’s scenic horse country. Zillow reports that average home values in Lexington reached $301,468 in 2023, marking a 4.4% increase over the past year.
As more businesses and residents flock to the city, proactive measures will be necessary to manage growth while maintaining Lexington’s affordability.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
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