Indy will be among hottest housing markets this year, Zillow predicts. What that means
Indianapolis is expected to have the No. 4 hottest real estate market in the country this year, according to online real estate listing site Zillow.
Most of the cities that made it onto Zillow's annual list were in the Midwest, Great Lakes region and the South, with Buffalo, N.Y., predicted as the hottest 2024 housing market.
The list is based on an analysis of forecast home value growth, recent housing market velocity, projected changes in the labor market, home construction activity and number of homeowner households. The analysis was applied to the top 50 metropolitan areas by population.
More on real estate: See inside 3 of the top home sales in Indianapolis in 2023
Also in the top five are Columbus and Cincinnati, Ohio, and Providence, Rhode Island.
Buffalo topped the list because of recent increases in the number of jobs created compared to the number of new home construction projects being approved, as well as expectations for steady home values.
Zillow’s predicted 10 hottest housing markets of 2024:
Buffalo, NY
Cincinnati, OH
Columbus, OH
Indianapolis, IN
Providence, RI
Atlanta, GA
Charlotte, NC
Cleveland, OH
Orlando, FL
Tampa, FL
Some of the highest mortgage rates since 2008 slowed growth in home prices last year, Zillow said, and it expects only 15 of the 50 largest markets to see home values grow in 2024.
Even some of the fastest-growing markets of 2023 are expected to see significant slowdowns in the year to come, said Anushna Prakash, data scientist for Zillow Economic Research.
Local Journalism impact: For the greater good of Central Indiana: IndyStar's Community Impact Report
Zillow predicts that low inventory will also continue. Some of the markets with the lowest supply in 2023, or in other words where homes generally sold the fastest, were in Hartford, Cincinnati and Columbus.
One factor keeping supply low, Zillow said, is that baby boomers are not selling their homes as they age to the extent previous generations did. Millennials, meanwhile, are aging into their prime home-buying years.
In 2024, only 14 of the 50 largest markets are expected to see homeownership rise, Zillow said.
Zillow’s list was based on the following data:
Forecast annual home value appreciation in November 2024
Forecast acceleration in home value appreciation, November 2023 to November 2024
Days on market per home, January 2023 to November 2023
Two-year change in total non-farm employment per two-year residential building permit total
Projected change in owner-occupied households, 2023 to 2024
Contact IndyStar reporter Caroline Beck at 317-618-5807 or CBeck@gannett.com. Follow her on Twitter: @CarolineB_Indy.
Caroline’s reporting is made possible by Report for America and Glick Philanthropies. As part of its work in Marion County, Glick Philanthropies partners with organizations focused on closing access and achievement gaps in education.
Report for America is a program of The GroundTruth Project, a nonpartisan, nonprofit organization dedicated to strengthening local newsrooms. Report for America provides funding for up to half of the reporter’s salary during their time with us, and IndyStar is fundraising the remainder.
To learn more about how you can support IndyStar’s partnership with Report for America and to make a donation, visit indystar.com/RFA.
This article originally appeared on Indianapolis Star: Zillow projects Indianapolis among hottest housing markets of 2024
