The National Association of REALTORS® (NAR) announced that Atlanta, Georgia is positioned to be the #1 housing market in the United States in 2023 with the most potential for positive growth in the new year.
Researchers with NAR considered 10 key indicators that influence market conditions including housing affordability, employment conditions, share of work-from-home opportunities, renters' ability to purchase, and increasing migration gains. Among the 179 metro areas analyzed by the National Association of REALTORS®, Metro Atlanta was the only area to meet all 10 real estate market indicators.
According to NAR, "The Atlanta metro area continues to be more affordable than most areas across the country, with more than 20% of the renters able to afford to buy the typical home in the area. The job market is robust, with many major tech companies from the West Coast opening offices, such as Apple, Microsoft, and Visa. As a result, the area experiences substantial migration gains and fast population growth."
Even amidst the backdrop of a national housing correction, the South is expected to remain a booming region for home sales in 2023. “The demand for housing continues to outpace supply,” says NAR Chief Economist Lawrence Yun. “The economic conditions in place in the top 10 U.S. markets—all of which are located in the South—provide the support for home prices to climb by at least 5% in 2023.”
Top 10 Real Estate Markets to Watch in 2023
- Atlanta-Sandy Springs-Marietta, GA
- Raleigh, NC
- Dallas-Fort Worth-Arlington, TX
- Fayetteville-Springdale-Rogers, AR-MO
- Greenville-Anderson-Mauldin, SC
- Charleston-North Charleston, SC
- Huntsville, AL
- Jacksonville, FL
- San Antonio-New Braunfels, TX
- Knoxville, TN
The 10 Key Housing Marketing Indicators Researched by the National Association of REALTORS®:
- Better housing affordability than the national level. Weakening affordability is the primary reason for this year's housing market cooling.
- More renters who can afford to buy the median-priced home than at the national level. Homeownership rate trends depend on the ability of renters to become homeowners.
- Stronger job growth than the national level. A strong job market typically supports housing demand as household incomes continue to grow.
- Faster growth of information industry jobs than at the national level. Information industry jobs are one of the most well-paid jobs. These workers are paid about 50% more than the average employee.
- A higher share of the information industry in the local GDP. The information industry is a rapidly growing part of the economy. When demand for this industry is growing in an area, that creates opportunities for the local economy to grow faster than in other areas.
- Migration gains. When more people move into an area compared to those who move out, this means that more people will look for a home in this area as they will need a place to live in,
- Share of workers teleworking. Teleworking has a different impact on affordable versus expensive areas. Data shows that people continue to embrace teleworking. An affordable area with many remote jobs can attract more movers (positive effect). However, thanks to teleworking, many workers were able to move out from expensive areas to more affordable areas (negative effect).
- A faster-growing population than the national average. Population changes can lead to a changing demand for housing. When the population rises, housing demand does too, while a declining population leads to lower housing demand.
- Faster growth of active inventory than at the national level. Increasing inventory translates to more options for buyers. This is also good news for a housing market that is dealing with a severe housing shortage.
- A smaller housing shortage than at the national level. In the areas where housing supply meets better housing demand, buyers have more options.
