Downloadpdf (PDF: 627.KB) | News Release | Appendix: Data for All Metro Areaspdf (PDF: 303 KB)
Since all real estate is local, the National Association of REALTORS® identified which markets will outperform in 2023. In identifying these markets, NAR considered a variety of indicators that it views to be influential to a metro area's market, including:
- 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.
- A faster-growing population than the national average. Population changes can lead to a changing demand for housing.
- Faster growth of active inventory than at the national level. Increasing inventory translates to more options for buyers.
- A smaller housing shortage than at the national level. In the areas where housing supply meets better housing demand, buyers have more options.