Boston ranks 34th on Zillow’s 2023 hottest housing markets list

by Liz Hughes

Boston made Zillow’s 2023 hottest housing market list, which ranked the hottest markets in the country on expected home value growth, buyer demand and more.

Charlotte, North Carolina, was named 2023’s hottest housing market.

Zillow analyzed the top 43 largest metros based on forecasted home value growth, recent housing market velocity, projected labor market changes, home construction activity and the number of homeowner households. 

Beantown ranked No. 34 on the list. According to Zillow, expensive markets like Boston are expected to be on the cooler side this year as buyers continue to grapple with affordability challenges. 

The metros that dominated this year’s list were relatively affordable ones. Charlotte was followed by Cleveland and Pittsburgh. Dallas and Nashville rounded out the top five.

But just because they’re hot doesn’t mean they’re super active as economic factors, high mortgage rates and low inventory continue to hold buyers back. 

“This year’s hottest markets will feel much chillier than they did a year ago,” said Anushna Prakash, economic data analyst at Zillow. “The desire to move hasn’t changed, but both buyers and sellers are frozen in place by higher mortgage rates, slowing the housing market to a crawl. Markets that offer relative affordability and room to grow are poised to stand out, especially given the prevalence of remote work.” 

Prakash added that there is good news for buyers as monthly housing costs have stopped climbing.

“Home shoppers who can overcome affordability hurdles will find a more comfortable market this year, with more time to consider options and less chance of a bidding war, even if they’re shopping in one of the hottest markets,” Prakash said. 

Zillow expects the coolest markets this year to be San Jose, California, Sacramento, Minneapolis and Denver, due to “expected annual home value declines and slower housing market velocity,” compared to other large markets.

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