5 Southern Cities Poised for a Housing Rebound
Southern cities boast some of the most affordable real estate in America — especially those that suffered a recent slump. Savvy investors and homebuyers alike should scout for cities where prices have fallen but are set to rise once more — and in the South, there are plenty to choose from.
Here are the Southern cities that are poised for a housing market rebound.
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Birmingham, Alabama
Birmingham home values dropped by nearly 5% over the last year, following a trend dating back to mid-2022 when the average property was worth more than $147,000.
Today, it’s less than $133,000 — but some experts think the clouds are beginning to clear.
“Birmingham has had its fair share of ups and downs, particularly with the decline in its industrial roots,” said Martin Boonzaayer of The Trusted Home Buyer. “But things are looking up. The city is experiencing a renaissance, especially in its downtown area, thanks to investments in tech and healthcare. Housing prices are still quite reasonable, and with the ongoing push toward economic diversity, Birmingham is set to make a strong comeback in the housing market.”
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Jackson, Mississippi
Few Southern housing markets have fallen further in recent years than Jackson’s, where the average home value plummeted by more than 17% in the last year alone. One of America’s most accessible markets, Jackson’s average home costs only around $64,000, a far fall from the city’s 2022 peak when it was closer to $91,000.
But better days could be on the horizon.
“Jackson has been through some tough times with population decline and economic sluggishness,” Boonzaayer said. “However, there’s a fresh wave of optimism. The city is actively working on attracting new businesses and improving infrastructure. With its focus on education, healthcare and green energy, Jackson is becoming a more attractive place to live and invest in. The affordable housing and new business incentives are just the cherry on top.”
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New Orleans, Louisiana
In New Orleans, home values fell by another 6.4% over the last year to $247,672, part of a yearslong trend dating back to mid-2022 when the average price peaked at over $287,000.
But industry veterans think the Big Easy is poised for a big rebound.
“Despite past challenges, New Orleans is experiencing a resurgence driven by investments in infrastructure and tourism,” said Justin Tanos, a real estate expert and the CEO of We Buy Houses in Orange County.
According to a recent report from NOLA.com, an escalating property insurance crisis is driving up the costs of homes and commercial buildings alike, and the market’s chance of rebounding depends on the city’s ability to make coverage affordable.
Nashville, Tennessee
The average home value in Nashville rose by nearly 2% over the last year to $444,640, but the market has mostly flatlined since falling from its 2022 peak of over $452,000.
However, the city appears ready to restart its meteoric pandemic-era growth.
“Nashville is a market that has great suburban appeal and is expected to have a steady growth in housing prices in 2024, which means that the time to buy property is now so that you can see a substantial profit on your investment,” said Hannah Jones, a Realtor, property manager and contractor with NewBuildHomes. “According to Realtor.com, homebuyers in the area have the upper hand because of low inventory and even lower competition, and thus, have more bargaining power. The total number of active real estate listings across the metro area increased by a whopping 193% over the past year.”
Memphis, Tennessee
Home values in Memphis were over $160,000 in mid-2022, but the market declined until prices dropped below $150,000. Despite a slight uptick to just over $152,000, prices again fell by 2% over the last year.
But now might be the time to buy and get in on the floor of a coming rebound.
“Known for its rich cultural history, Memphis has been facing economic challenges, but recent efforts to revitalize the downtown area and enhance its logistics and healthcare industries are paying off,” said Jolean Olson, real estate expert and CEO of Olson Home Buyers. “With FedEx’s headquarters and a strong presence in transportation and distribution, job growth is expected, leading to increased housing demand. The affordable housing market in Memphis presents a great opportunity for buyers looking for long-term appreciation.”
Note: All housing data is from Zillow.
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