Realtor.com Ranks Top 10 US Cities for Homebuyers

Realtor.com has released a new report ranking the 100 largest U.S. metropolitan areas based on housing affordability for local earners and the availability of new construction to meet future demand. Des Moines, Iowa, and Raleigh, North Carolina, were the only two metro areas to receive an "A+" grade, indicating strong performance in both affordability and new home development. The remaining eight metro areas that achieved an "A" grade were predominantly located in the Midwest and South, highlighting a significant geographic divergence in the current U.S. housing market. This geographic split suggests that local housing policies, particularly those concerning zoning and permitting, play a crucial role in distinguishing metro areas with high housing affordability from those that struggle.

Danielle Hale, chief economist at Realtor.com, emphasized the importance of sustained homebuilding for long-term affordability. She stated that the top-ranked metros demonstrate that homebuyers benefit most when communities offer homes that are attainable for current residents while also ensuring sufficient new construction to accommodate future demand. The report's methodology involved grading metropolitan areas on a scale that considers the balance between current housing prices and the pace of new development. This dual focus aims to provide a comprehensive view of the housing market's health and its suitability for potential buyers.

The 10 metropolitan areas that received the highest grades from Realtor.com are: Des Moines, Iowa; Raleigh, North Carolina; Columbia, South Carolina; Houston, Texas; Indianapolis, Indiana; Austin, Texas; Jacksonville, Florida; Oklahoma City, Oklahoma; Palm Bay, Florida; and Columbus, Ohio. A key finding across these "A"-graded metro areas is that the median listing price for homes was generally below $450,000. An exception to this trend was Austin, Texas, where the median listing price stood at approximately $501,000, indicating a comparatively higher cost of entry despite its high ranking. This suggests that while affordability is a primary driver, other factors contribute to a metro area's overall attractiveness for homebuyers.

The report also touched upon the nuances of housing markets, noting that some areas with median listing prices below $300,000 did not achieve high scores due to insufficient new construction. This underscores the report's emphasis on the necessity of a robust building pipeline to support sustained affordability and meet growing population needs. The findings from Realtor.com provide valuable insights for policymakers, developers, and prospective homebuyers alike, shedding light on the critical interplay between local governance, construction rates, and the accessibility of housing across the United States.