Whether you’re in the real estate business or just looking for a place to call home, it’s important to get a handle on the housing markets you’re considering before investing in a property.
If you aim to make a profit in the long run with your housing purchase, you’ll need to look beyond tangible factors like square footage and style. Those factors certainly drive up property values. From an investor’s standpoint, though, they hold less significance than historical market trends and the economic health of residents.
To determine the best local real estate markets in the U.S., WalletHub compared 300 cities of varying sizes across 17 key indicators of housing-market attractiveness and economic strength. Our data set ranges from median home-price appreciation to housing affordability to job growth.
Cassandra Happe, WalletHub Analyst
Main Findings
Best Real Estate Markets
Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that city, where a rank of 1 represents the best conditions for that metric category.
- Lowest
- T-1. San Jose, CA
- T-1. Santa Clara, CA
- T-1. Sunnyvale, CA
- T-4. Miami Gardens, FL
- T-4. Hialeah, FL
- Highest
- T-294. Peoria, IL
- T-294. New Orleans, LA
- T-294. Shreveport, LA
- T-294. Laredo, TX
- T-294. Baton Rouge, LA
- Lowest
- 1. Rochester, NY
- 2. Manchester, NH
- 3. Lowell, MA
- 4. Worcester, MA
- 5. Livonia, MI
- Highest
- 292. New Orleans, LA
- 293. New York, NY
- 294. Cape Coral, FL
- 295. Miami Beach, FL
- 296. Lancaster, CA
- Highest
- 1. Miami Gardens, FL
- 2. North Las Vegas, NV
- 3. Boise, ID
- 4. Palm Bay, FL
- 5. Vallejo, CA
- Lowest
- 296. Jackson, MS
- 297. Hampton, VA
- 298. Erie, PA
- 299. Stamford, CT
- 300. Peoria, IL
- Lowest
- 1. Madison, WI
- 2. Fort Collins, CO
- 3. Green Bay, WI
- 4. San Mateo, CA
- 5. Spokane, WA
- Highest
- 280. Compton, CA
- 281. Paterson, NJ
- 282. Baltimore, MD
- 283. Cleveland, OH
- 284. North Las Vegas, NV
- Lowest
- 1. Boston, MA
- 2. Cambridge, MA
- T-3. Ann Arbor, MI
- T-3. Daly City, CA
- T-3. Torrance, CA
- Highest
- T-288. Port St. Lucie, FL
- T-288. Springfield, MA
- T-288. Portsmouth, VA
- T-288. Victorville, CA
- T-288. Laredo, TX
- Lowest
- 1. Flint, MI
- 2. Detroit, MI
- 3. Dayton, OH
- 4. Akron, OH
- 5. Toledo, OH
- Highest
- 296. Boulder, CO
- T-297. Glendale, CA
- T-297. Berkeley, CA
- T-297. Santa Barbara, CA
- T-297. Santa Monica, CA
- Lowest
- 1. Sunnyvale, CA
- 2. Santa Clara, CA
- 3. Naperville, IL
- 4. Bellevue, WA
- 5. Roswell, GA
- Highest
- 296. Birmingham, AL
- 297. Detroit, MI
- 298. Hartford, CT
- 299. Cleveland, OH
- 300. Flint, MI
Ranking by City Size
Rank (1=Best) |
Large Cities (Score) | Rank (1=Best) |
Midsize Cities (Score) | Rank (1=Best) |
Small Cities (Score) |
---|---|---|---|---|---|
1 | Nashville, TN (69.79) | 1 | McKinney, TX (74.09) | 1 | Denton, TX (67.53) |
2 | Charlotte, NC (68.07) | 2 | Frisco, TX (73.03) | 2 | Allen, TX (67.29) |
3 | Austin, TX (66.34) | 3 | Cary, NC (70.52) | 3 | Surprise, AZ (65.95) |
4 | Raleigh, NC (65.45) | 4 | Durham, NC (68.99) | 4 | Richardson, TX (65.56) |
5 | Irvine, CA (64.51) | 5 | Gilbert, AZ (68.88) | 5 | Carrollton, TX (64.32) |
6 | Henderson, NV (63.49) | 6 | Port St. Lucie, FL (67.01) | 6 | Roseville, CA (64.18) |
7 | Tampa, FL (63.42) | 7 | Boise, ID (66.94) | 7 | North Charleston, SC (63.27) |
8 | Seattle, WA (63.26) | 8 | Murfreesboro, TN (66.05) | 8 | Charleston, SC (62.97) |
9 | Fort Worth, TX (63.16) | 9 | Peoria, AZ (66.01) | 9 | Santa Clara, CA (62.67) |
10 | Atlanta, GA (62.50) | 10 | Chandler, AZ (65.58) | 10 | Hillsboro, OR (62.37) |
11 | Phoenix, AZ (62.27) | 11 | Tempe, AZ (64.04) | 11 | Clovis, CA (62.05) |
12 | Colorado Springs, CO (62.20) | 12 | Bellevue, WA (63.27) | 12 | Wilmington, NC (61.69) |
13 | Mesa, AZ (61.46) | 13 | Huntsville, AL (63.14) | 13 | Arvada, CO (61.44) |
14 | Aurora, CO (60.94) | 14 | Madison, WI (63.02) | 14 | Temecula, CA (60.71) |
15 | Orlando, FL (60.39) | 15 | Irving, TX (63.01) | 15 | Spokane Valley, WA (60.41) |
16 | Dallas, TX (60.12) | 16 | Salt Lake City, UT (62.93) | 16 | Davie, FL (60.04) |
17 | Denver, CO (59.76) | 17 | Plano, TX (62.84) | 17 | Longmont, CO (59.68) |
18 | San Diego, CA (59.60) | 18 | Ontario, CA (62.66) | 18 | Roswell, GA (59.58) |
19 | Columbus, OH (58.68) | 19 | Garland, TX (62.39) | 19 | Everett, WA (59.48) |
20 | San Jose, CA (57.37) | 20 | Grand Prairie, TX (61.80) | 20 | Manchester, NH (59.12) |
21 | Miami, FL (57.25) | 21 | Fort Collins, CO (61.52) | 21 | Carlsbad, CA (58.90) |
22 | Arlington, TX (57.04) | 22 | Sunnyvale, CA (61.50) | 22 | Athens-Clarke, GA (58.65) |
23 | Houston, TX (56.76) | 23 | Hialeah, FL (60.96) | 23 | Sterling Heights, MI (58.26) |
24 | Omaha, NE (56.56) | 24 | Reno, NV (60.64) | 24 | Renton, WA (58.12) |
25 | Las Vegas, NV (56.35) | 25 | Grand Rapids, MI (60.57) | 25 | Vista, CA (57.88) |
26 | Santa Ana, CA (55.95) | 26 | Spokane, WA (60.47) | 26 | Beaverton, OR (57.84) |
27 | Portland, OR (55.88) | 27 | Glendale, AZ (60.44) | 27 | Lakeland, FL (57.72) |
28 | Tucson, AZ (55.62) | 28 | Knoxville, TN (60.15) | 28 | High Point, NC (57.02) |
29 | Anaheim, CA (55.34) | 29 | Elk Grove, CA (59.70) | 29 | Norman, OK (56.88) |
30 | Sacramento, CA (55.18) | 30 | Eugene, OR (59.01) | 29 | Miami Gardens, FL (56.88) |
31 | Jacksonville, FL (54.77) | 31 | Fontana, CA (58.77) | 31 | Green Bay, WI (56.62) |
32 | Boston, MA (54.66) | 32 | Salem, OR (58.68) | 32 | Ann Arbor, MI (56.55) |
33 | Fresno, CA (54.38) | 33 | Chula Vista, CA (58.44) | 33 | Quincy, MA (56.55) |
34 | El Paso, TX (54.16) | 34 | St. Petersburg, FL (58.15) | 34 | Kent, WA (56.52) |
35 | Oklahoma City, OK (54.12) | 35 | Vancouver, WA (58.11) | 35 | Thornton, CO (56.06) |
36 | Bakersfield, CA (54.07) | 36 | Escondido, CA (58.01) | 36 | Palm Bay, FL (56.00) |
37 | Virginia Beach, VA (54.05) | 37 | Lincoln, NE (57.69) | 37 | Mission Viejo, CA (55.71) |
38 | Wichita, KS (53.90) | 38 | Rancho Cucamonga, CA (57.61) | 38 | Yuma, AZ (55.48) |
39 | San Antonio, TX (53.66) | 39 | Tacoma, WA (57.26) | 39 | Federal Way, WA (55.41) |
40 | Lexington, KY (52.66) | 40 | Pembroke Pines, FL (57.03) | 40 | Murrieta, CA (55.27) |
41 | Riverside, CA (52.46) | 41 | Overland Park, KS (56.89) | 41 | El Cajon, CA (55.08) |
42 | Minneapolis, MN (52.06) | 42 | Oceanside, CA (56.88) | 42 | Westminster, CO (55.06) |
43 | Kansas City, MO (51.97) | 43 | Richmond, VA (56.81) | 43 | Mesquite, TX (55.05) |
44 | Indianapolis, IN (51.92) | 44 | Cape Coral, FL (56.78) | 44 | Dearborn, MI (54.80) |
45 | Pittsburgh, PA (51.64) | 45 | Fremont, CA (56.78) | 45 | Savannah, GA (54.80) |
46 | Long Beach, CA (51.43) | 46 | Jersey City, NJ (56.67) | 46 | Lowell, MA (54.69) |
47 | Los Angeles, CA (51.25) | 47 | Fort Wayne, IN (56.37) | 47 | Greeley, CO (54.65) |
48 | Cincinnati, OH (51.21) | 48 | Scottsdale, AZ (56.31) | 48 | Allentown, PA (54.50) |
49 | Memphis, TN (51.02) | 49 | Chesapeake, VA (56.30) | 49 | Naperville, IL (54.36) |
50 | Albuquerque, NM (50.77) | 50 | Winston-Salem, NC (56.25) | 50 | West Covina, CA (54.34) |
51 | Tulsa, OK (49.63) | 51 | Rochester, NY (55.75) | 51 | Costa Mesa, CA (54.32) |
52 | Stockton, CA (48.80) | 52 | Huntington Beach, CA (55.21) | 52 | Clearwater, FL (54.21) |
53 | St. Paul, MN (48.67) | 53 | North Las Vegas, NV (55.18) | 53 | Miramar, FL (54.03) |
54 | Milwaukee, WI (48.08) | 54 | Garden Grove, CA (55.08) | 54 | Livonia, MI (54.01) |
55 | Honolulu, HI (47.47) | 55 | Buffalo, NY (55.07) | 55 | Santa Maria, CA (53.91) |
56 | Oakland, CA (46.48) | 56 | Corona, CA (55.06) | 56 | Warren, MI (53.76) |
57 | San Francisco, CA (46.45) | 57 | Moreno Valley, CA (54.94) | 57 | Fullerton, CA (53.72) |
58 | Detroit, MI (46.20) | 58 | Worcester, MA (54.70) | 58 | Sunrise, FL (53.68) |
59 | Corpus Christi, TX (45.63) | 59 | Springfield, MO (54.68) | 59 | Norwalk, CA (53.66) |
60 | Louisville, KY (45.34) | 60 | Lakewood, CO (54.01) | 60 | Visalia, CA (53.60) |
61 | Washington, DC (44.82) | 61 | Fayetteville, NC (53.77) | 61 | Yakima, WA (53.55) |
62 | New York, NY (43.78) | 62 | Tallahassee, FL (53.39) | 62 | Gresham, OR (53.55) |
63 | Newark, NJ (42.36) | 63 | Hayward, CA (53.29) | 63 | San Mateo, CA (53.40) |
64 | Chicago, IL (41.16) | 64 | Providence, RI (52.98) | 64 | Torrance, CA (53.37) |
65 | Cleveland, OH (38.40) | 65 | Alexandria, VA (52.84) | 65 | Cambridge, MA (53.16) |
66 | Philadelphia, PA (37.13) | 66 | Greensboro, NC (52.82) | 66 | Orange, CA (53.14) |
67 | Baltimore, MD (29.12) | 67 | Salinas, CA (52.73) | 67 | Plantation, FL (53.11) |
68 | New Orleans, LA (27.25) | 68 | Oxnard, CA (52.47) | 68 | Westminster, CA (53.06) |
Info | Info | 69 | Modesto, CA (52.09) | 69 | Lansing, MI (53.01) |
Info | Info | 70 | Norfolk, VA (52.09) | 70 | Centennial, CO (52.92) |
Info | Info | 71 | Glendale, CA (51.51) | 71 | Thousand Oaks, CA (52.67) |
Info | Info | 72 | Santa Rosa, CA (51.41) | 72 | Coral Springs, FL (52.61) |
Info | Info | 73 | Santa Clarita, CA (51.24) | 73 | Gainesville, FL (52.54) |
Info | Info | 74 | Aurora, IL (50.83) | 74 | West Palm Beach, FL (52.51) |
Info | Info | 75 | Newport News, VA (50.48) | 75 | Downey, CA (52.20) |
Info | Info | 76 | San Bernardino, CA (49.98) | 76 | Pomona, CA (52.19) |
Info | Info | 77 | Augusta, GA (49.65) | 77 | Santa Barbara, CA (52.17) |
Info | Info | 78 | Amarillo, TX (49.57) | 78 | Stamford, CT (52.03) |
Info | Info | 79 | Hollywood, FL (47.78) | 79 | Burbank, CA (51.94) |
Info | Info | 80 | Akron, OH (47.68) | 79 | Boulder, CO (51.87) |
Info | Info | 81 | Fort Lauderdale, FL (47.11) | 81 | Daly City, CA (51.81) |
Info | Info | 82 | Anchorage, AK (46.43) | 82 | Lynn, MA (51.58) |
Info | Info | 83 | Des Moines, IA (46.23) | 83 | Santa Monica, CA (51.55) |
Info | Info | 84 | Birmingham, AL (45.74) | 84 | El Monte, CA (51.43) |
Info | Info | 85 | Palmdale, CA (45.17) | 85 | Ventura, CA (51.41) |
Info | Info | 86 | Joliet, IL (43.83) | 86 | Fairfield, CA (51.34) |
Info | Info | 87 | Columbus, GA (43.74) | 87 | Pueblo, CO (51.30) |
Info | Info | 88 | Little Rock, AR (43.73) | 88 | Kenosha, WI (51.15) |
Info | Info | 89 | Springfield, MA (43.29) | 89 | Sandy Springs, GA (51.09) |
Info | Info | 90 | Toledo, OH (43.22) | 90 | Pompano Beach, FL (51.00) |
Info | Info | 91 | Yonkers, NY (43.18) | 91 | South Gate, CA (50.99) |
Info | Info | 92 | Laredo, TX (42.68) | 92 | Broken Arrow, OK (50.95) |
Info | Info | 93 | Lancaster, CA (42.66) | 93 | Simi Valley, CA (50.92) |
Info | Info | 94 | Paterson, NJ (41.34) | 94 | Rockford, IL (50.68) |
Info | Info | 95 | Montgomery, AL (40.97) | 95 | Fort Smith, AR (50.35) |
Info | Info | 96 | Mobile, AL (40.78) | 96 | Inglewood, CA (50.28) |
Info | Info | 97 | St. Louis, MO (40.47) | 97 | Pasadena, CA (50.28) |
Info | Info | 98 | Jackson, MS (34.66) | 98 | Boca Raton, FL (50.26) |
Info | Info | 99 | Baton Rouge, LA (34.56) | 99 | Victorville, CA (49.89) |
Info | Info | 100 | Shreveport, LA (30.54) | 100 | Richmond, CA (49.69) |
Info | Info | Info | Info | 101 | Vallejo, CA (49.69) |
Info | Info | Info | Info | 102 | Vacaville, CA (49.64) |
Info | Info | Info | Info | 103 | Berkeley, CA (49.59) |
Info | Info | Info | Info | 104 | Fall River, MA (49.27) |
Info | Info | Info | Info | 105 | Rialto, CA (48.61) |
Info | Info | Info | Info | 106 | New Bedford, MA (48.32) |
Info | Info | Info | Info | 107 | New Haven, CT (48.28) |
Info | Info | Info | Info | 108 | Hampton, VA (48.11) |
Info | Info | Info | Info | 109 | Erie, PA (47.97) |
Info | Info | Info | Info | 110 | Carson, CA (47.82) |
Info | Info | Info | Info | 111 | Albany, NY (47.71) |
Info | Info | Info | Info | 112 | Concord, CA (47.69) |
Info | Info | Info | Info | 113 | Elizabeth, NJ (47.41) |
Info | Info | Info | Info | 114 | Chico, CA (46.89) |
Info | Info | Info | Info | 115 | Cedar Rapids, IA (46.81) |
Info | Info | Info | Info | 116 | Antioch, CA (46.10) |
Info | Info | Info | Info | 117 | Roanoke, VA (46.09) |
Info | Info | Info | Info | 118 | Waukegan, IL (45.65) |
Info | Info | Info | Info | 119 | Flint, MI (45.40) |
Info | Info | Info | Info | 120 | Waterbury, CT (45.17) |
Info | Info | Info | Info | 121 | Springfield, IL (45.10) |
Info | Info | Info | Info | 122 | Brockton, MA (44.68) |
Info | Info | Info | Info | 123 | Tuscaloosa, AL (44.62) |
Info | Info | Info | Info | 124 | Hartford, CT (44.52) |
Info | Info | Info | Info | 125 | Bridgeport, CT (44.36) |
Info | Info | Info | Info | 126 | Compton, CA (43.69) |
Info | Info | Info | Info | 127 | Dayton, OH (42.23) |
Info | Info | Info | Info | 128 | Elgin, IL (42.14) |
Info | Info | Info | Info | 129 | Portsmouth, VA (41.33) |
Info | Info | Info | Info | 130 | Miami Beach, FL (40.23) |
Info | Info | Info | Info | 131 | Davenport, IA (38.28) |
Info | Info | Info | Info | 132 | Peoria, IL (36.39) |
In-Depth Look at the Best Real Estate Markets
McKinney, TX
McKinney, TX, has the best real estate market in the U.S., in large part because of its recent growth. McKinney has the second-highest share of houses that were built between 2010 and 2021, at 35%, which means that new buyers have a lot of options for houses that may not need major maintenance for a while. There are also plenty more new housing options coming, as McKinney has the highest number of building permits per capita.
While McKinney isn’t necessarily the cheapest city to move to, it’s also far from the most expensive. The median home price in McKinney is around 353% of the median income, which is the 76th-cheapest out of the 300 cities in our study. In addition, it ranks in the 50 least expensive cities for maintenance and telephone costs, and the 40 least expensive for energy costs.
To top things off, McKinney has a good job market to go along with its healthy real estate market. It has the 13th-highest job growth rate in the nation, at nearly 14% annually.
Frisco, TX
Frisco, TX, has the second-best real estate market, with the highest share of houses that were built between 2010 and 2021, at nearly 42%. That’s good news for people who want all the benefits of a recently-constructed home, like not having to put in a lot of work immediately.
In addition, Frisco is an affordable place to live. When you look at home prices as a percentage of income, the city is the 84th-cheapest among the 300 cities in our study. But it’s the 10th-cheapest city for phone service and the 11th-cheapest for maintenance and energy.
Finally, Frisco has the 15th-best job growth rate in the country, which helps attract new residents to its growing housing market.
Cary, NC
Cary, NC, has the third-best real estate market, in large part due to its low cost of living. The city has the 10th-lowest home energy costs in the country, along with the 12th-lowest phone service costs and home maintenance costs.
It can be a bit pricey to buy a house to begin with, as Cary ranks 94th for housing affordability – but that’s still in the cheapest third of the 300 cities in our study. In addition, once people buy a house in Cary, the value is forecasted to rise by 1.3% per year, the 31st-most in the country.
Cary residents also seem to be able to keep up with their housing costs well. The city has the 10th-lowest mortgage delinquency rate and the 20th-lowest foreclosure rate. The fact that Cary has one of the lowest unemployment rates in the country and one of the best job growth rates also helps residents make their payments on time.
Ask the Experts
Economic indicators point to a strong housing market, but does that mean it’s a good time to buy a home? We consulted a panel of experts for their insight. Click on the panelists’ profiles below to read their bios and thoughts on the following key questions:
- Is now a good time to buy a home? What economic indicators should potential buyers be watching?
- How has inflation affected housing prices and the home-buying process? What changes should we expect on the housing market during the upcoming months?
- How likely is it that the Federal Reserve will increase interest rates in the coming months? How will this impact the housing market?
- Why are Millennials still sitting out of the housing market? What can be done to increase homeownership rates for this cohort?
- What trends are impacting the housing market in 2024? Will it crash or boom?
Ask the Experts
Methodology
In order to determine the best real estate markets, WalletHub compared 300 cities across two key dimensions, “Real Estate Market” and “Affordability & Economic Environment.”
We evaluated those dimensions using 17 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the healthiest housing market.
Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.
Each city in our sample was categorized according to the following population-size guidelines:
- Large city: More than 300,000 residents
- Midsize city: 150,000 to 300,000 residents
- Small city: Fewer than 150,000 residents
Real Estate Market – Total Points: 80
- Home Value Forecast: Full Weight (~8.00 Points)
Note: This metric is based on Zillow’s Home Value Forecast, which predicts the Zillow Home Value Index one year from now - April 2025. - Median Home-Price Appreciation: Full Weight (~8.00 Points)
- Median Days on the Market: Full Weight (~8.00 Points)
- Share of Seriously Underwater Mortgages: Full Weight (~8.00 Points)
Note: This metric measures the proportion of seriously underwater mortgages, where the combined estimated balance of loans secured by those properties was at least 25 percent more than their estimated market value. - Ratio of Rent Price to Sale Price: Full Weight (~8.00 Points)
- Foreclosure Rate: Full Weight (~8.00 Points)
- Share of People Delinquent on their Mortgage Debt: Full Weight (~8.00 Points)
- Vacancy Rate: Full Weight (~8.00 Points)
Note: This metric was calculated as follows: Vacant Housing Units / Total Housing Units. - Share of Young Homes: Full Weight (~8.00 Points)
Note: “Young Homes” refer to housing units built between 2010 and 2022. - Building-Permit Activity: Full Weight (~8.00 Points)
Note: This metric measures the number of unit permits pulled per 1,000 residents.
Affordability & Economic Environment – Total Points: 20
- Housing Affordability: Double Weight (~5.00 Points)
Note: This metric measures home price as share of income. - Maintenance Affordability: Full Weight (~2.50 Points)
Note: This metric measures maintenance costs as share of income. - Population Growth Rate: Full Weight (~2.50 Points)
- Job Growth Rate: Full Weight (~2.50 Points)
- Unemployment Rate: Full Weight (~2.50 Points)
- Underemployment Rate: Full Weight (~2.50 Points)
- Median Credit Score: Full Weight (~2.50 Points)
Sources: Data used to create this ranking were collected as of July 24, 2024 from the U.S. Census Bureau, Bureau of Labor Statistics, Council for Community and Economic Research, Zillow, TransUnion, Chmura Economics & Analytics, The National Association of Realtors, ATTOM, a property data provider - U.S. Home Equity & Underwater Report, and ATTOM, a property data provider - U.S. Foreclosure Market Report.
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