12 States with Explosive Real Estate Growth
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The U.S. real estate market has undergone many changes over the last few years, influenced by changing demographics, evolving work patterns, and regional economic factors. ATTOM data shows that 4,545,928 residential properties have sold in the U.S. real estate market over the last 12 months. In September 2024, the median home sales price for a single-family home was $370,000, while the median home value for properties over the last 12 months was $365,686.
However, due to increasing interest in suburban and smaller metropolitan areas, buyers seek affordability, space, and improvement in the quality of life. At the same time, real estate demand in urban areas is still stable in some regions due to job opportunities, cultural appeal, and infrastructure development. These trends have shaped a dynamic market landscape that features record-setting price increases in several states, with steady growth unfolding elsewhere.
Vermont
According to Vermont Public, home prices in Vermont increased 12.8% year over year, the highest in the United States as of early 2024. The company attributes this growth to the limited housing inventory and the massive demand for housing, especially in rural and picturesque areas.
As remote work continues to become popular, many buyers are attracted to the scenic landscapes of Vermont and its small-town charm. The impression this state’s housing market receives is further dominated by a mix of retirees and professionals in their younger years seeking tranquility. According to the Federal Housing Finance Agency, Vermont topped states in price appreciation during Q1 2024.
Florida
Florida’s real estate market continued an apparent upward rise due to the state’s warm climate, lack of state income tax, and growing population. According to a new report from Zillow, cities like Tampa, Jacksonville, and Orlando saw significant demand. The average home value reached $388,454. Smaller towns like Clewiston and Palatka see even sharper growth, with price appreciation nearing 10%.
Its popularity with retirees and remote workers strengthened its market position, but the state’s rising insurance costs related to climate risk threaten that position. This indicates that the state’s status remains like a real estate hotbed.
North Carolina
The housing market in North Carolina, especially the Research Triangle, which comprises Raleigh, Durham, and Chapel Hill, is growing tremendously. According to Redfin, in October 2024, home prices in North Carolina were up 2.6% compared to last year, selling for a median price.
On average, the number of homes sold was up 4.4% year over year, and 12,250 homes were sold in October this year, up from 11,736 homes sold in October last year. Solid educational institutions in the region and a thriving tech sector mean reasonable living costs.
These factors have contributed to more than 8% annual price growth in some cities, such as Sanford and Wilson. Balanced lifestyles and abundant job opportunities also lure families and young professionals in the state. Current forecasts indicate sustained demand in 2024 as the market remains competitive.
Texas
Texas combines affordability with economic growth, driving substantial real estate demand. Home prices in Texas moved 1.4% higher in October compared to one year ago. Simultaneously, home sales increased by 9.5%, while the volume of homes on sale increased by 16.2%. Cities such as Austin and San Antonio remain top destinations for homebuyers.
Towns like Lubbock and Abilene show fantastic investment potential for buyers. With Texas enjoying a healthy job market, especially in tech and energy, home values climb. Despite some challenges in rural areas, urban and suburban locations show consistent growth. This dynamic is supported by the state’s relatively low taxes and business-friendly environment.
California
Despite high prices, California remains a magnet for home buyers, with cities like Riverside and Bakersfield leading in affordability. Riverside’s home prices, for example, are nearly half those of neighboring Los Angeles, attracting buyers seeking value.
San Diego also has more action as families swap out smaller urban homes for more significant suburban properties. Realtor.com data shows sales growth of greater than 10% in several Californian metros. Strong demand bolsters the state’s housing market, which is hampered by low inventory.
Georgia
Atlanta is the leading point in Georgia’s real estate growth, acting as a cultural and economic hub with massive employment opportunities. The statewide average price of a home, $317,982, is very reasonable against the national average. The median sale price of a home in Atlanta in June 2024 was $435,000.
Suburbs around Atlanta, such as Sandy Springs, realize more modest demand as buyers seek space and amenities. Variety in industries in Georgia, including entertainment, logistics, and technology, propels further growth. This diversity also made Georgia a hot destination for local and foreign buyers.
New York
Upstate New York markets like Rochester are hotspots for their affordability and significant revitalization projects. Places like Rochester still hold median list prices below $250,000, which is why they remain enticing for buyers who want more affordable alternatives away from the higher-priced metropolitan areas.
This attractiveness is further enhanced by economic development initiatives in the region and its scenic scenery. The New York City luxury market contributes to statewide growth, albeit with challenges unique to shifting interest rates, to balance a diversified, dynamic real estate landscape.
Illinois
Real estate demand in Illinois is strong, most notably around the suburbs of Chicago. Driven by strong demand, Illinois home averages were up 9.4% year-over-year. The state’s housing provides an attractive level of affordability compared with neighboring states and access to a significant metropolitan job market.
Secondary cities are growing, too, as illustrated by Springfield, where lower costs and community-focused investments underpin its growth. The market shows resilience despite broader economic pressures.
Massachusetts
Massachusetts has seen a robust housing market through 2023, with increasing prices and low inventory. According to the Warren Group, the state’s median home price reached approximately $500,000 as of the report’s release date, substantially higher than in recent years.
Springfield’s relative affordability puts its median below $350,000; Boston remains in the higher-end market, catering to international investors and professionals. Due to low inventory and high demand, data reflects a 4.2% price growth forecast in 2024. This sets Massachusetts as a strong choice for both luxury and middle-market buyers.
Nevada
Nevada’s real estate market is powered by cities like Las Vegas, which combines low housing with a growing entertainment and technology industry. Bankrate reports that the median home sales price in September 2024 has risen in the last three months to $467,400.
That’s up 6.9% and $30,000 from September 2023 last year. It is also higher than the national median home sales price of $430,539.
Tax benefits and fair weather continue to draw in Nevada buyers, many from neighboring states like California. Suburban build-outs around Reno and Henderson diversify the market further, using a mix of local and international investment.
South Carolina
For the first quarter of 2024, the median home price was $330,000 in South Carolina, compared to a median sales price of $310,000 for the same period last year, up 6.5%, according to statistics from South Carolina Realtors.
With an over 8% increase in house prices in some cities, such as Charleston and Greenville, the housing market is strong in South Carolina. Combining historical appeal with modern facilities, this state attracts retirees and families. Job growth in healthcare, manufacturing, and education sectors bolsters the market.
Arizona
Arizona, led by cities like Phoenix and Tucson, continues to see robust real estate growth. As of August 2024, the median home price in Arizona is $442,900, reflecting a 1.3% increase year-over-year. Rising prices, driven by population growth and limited inventory, make it a competitive market.
Phoenix has become a hub for tech and healthcare industries, attracting young professionals and families. Tucson is cheaper, and its suburban areas continue to grow steadily. This desert state is still one of the favorites due to its warm climate and increasing economic opportunities.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
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