Yahoo Finance 6 Cities Where You Can Buy a Home in a Frozen Housing Market
The housing market in many parts of the country is so slow, due to high mortgage interest rates and high home prices, that it’s become all but frozen, making it’s harder and harder to buy a home.
However, in cities that are doing a lot of new building, there may be more options.
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“As a Realtor who has helped countless clients through all types of real estate climates, I can definitively say that the current landscape is one of the toughest for buyers that I’ve encountered in my career. With mortgage rates hovering near 7% and home prices still elevated from the pandemic boom, affordability has become a major obstacle for many prospective homebuyers,” said Rachel Stringer, a real estate agent at Raleigh Realty.
However, it’s not a completely frozen market out there, she assured.
“While inventory constraints have made things challenging across the board, certain areas of the country are still seeing relatively brisk new construction activity and buyer movement compared to others. For clients who have the flexibility to potentially relocate, expanding their search to these hot spots could open up more opportunities.”
Stringer and other real estate experts weigh in on six cities that are best for buying a home in a frozen housing market.
Austin, Texas
Austin continues to be a hotbed for new construction and development, according to Colten Claus, an associate broker at 8z Real Estate.
“The city is experiencing significant growth due to its thriving tech industry and appealing quality of life. Builders are actively addressing the demand, providing a range of options from affordable housing to luxury properties,” he explained.
Specifically, areas like Round Rock, Cedar Park, and Leander have seen an influx of new master-planned communities spring up to meet the relentless housing demand, Stringer added.
“Home builders have been in a perpetual race to bring more inventory online. While the median home price in Austin has eclipsed $500,000, it still offers relative affordability to transplants from coastal cities — not to mention no state income tax,” she explained.
“The competition is also slightly less fierce compared to peak periods, making it a good time to negotiate,” Claus said.
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Orlando, Florida
Orlando is also seeing substantial new construction, driven by its growing population and booming tourism industry. Claus said, “The availability of new homes provides buyers with more choices and opportunities to find a property that fits their needs.”
Claus said that Orlando’s real estate market benefits from a steady influx of new residents and investors, keeping the market active. “The city’s efforts to expand housing options have helped maintain a healthier inventory level.”
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Raleigh, North Carolina
Raleigh is another city with a robust new construction market.
“Known for its Research Triangle and strong job market, Raleigh attracts a lot of new residents, prompting developers to build more housing to meet the demand,” Claus said.
With a good balance of new builds and resale homes, Claus said Raleigh offers buyers a variety of options. “The city’s relatively affordable cost of living compared to other tech hubs also makes it attractive.”
What also makes Raleigh particularly appealing for buyers is its relative affordability paired with a high quality of life, Stringer added. “The median home value of around $400,000 is well below many other major cities, yet you get a diverse, educated population, mild climate, and great amenities in return.”
She said local builders have been establishing new communities in suburbs like Apex, Holly Springs, and Fuquay-Varina to keep up with the influx.
Nashville, Tennessee
Nashville is of course known for its vibrant music scene, which has driven economic growth. That has led to a surge in new construction, Claus said.
“The city is expanding rapidly, with developers focusing on both residential and mixed-use projects,” he explained.
Nashville’s market remains competitive but offers a steady stream of new homes, helping to alleviate some inventory pressure. Claus pointed out, “This makes it a viable option for buyers struggling to find homes in more saturated markets.”
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Phoenix
Phoenix has been a popular destination for new construction, driven by its attractive climate and lower cost of living.
“The city’s rapid growth has led to extensive development in suburban areas, providing plenty of new housing options,” Claus said.
Indeed, Stringer called it “the queen of new residential construction” and said, “Having helped clients relocate to the Valley of the Sun from more expensive markets like California, I’ve seen firsthand how the region’s abundance of new housing developments has opened more doors for buyers.”
From sprawling master-planned communities in the Southeast Valley to new urban condos in revitalized neighborhoods, there are options to fit almost any budget and lifestyle, according to Stringer.
Dallas-Fort Worth Metro
“The Dallas-Fort Worth metro area is experiencing significant growth, supported by a strong economy and business-friendly environment,” Claus said. This has led to a high volume of new construction projects.
With numerous new housing developments, Dallas-Fort Worth offers buyers more options than many other markets. “The area’s continuous job growth and infrastructure development keep the housing market dynamic and accessible,” he explained.
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