Whether you’re joining the real-estate business or just looking for a place to call home, it’s important to get a handle on the housing markets you’re considering before investing in a property. This year, the housing market is in a unique situation as mortgage rates have hit record lows at a time when many Americans are struggling financially due to the COVID-19 pandemic. For those who have extra cash, buying a home now could be a golden opportunity. It is important to note that home prices have been rising on average throughout the pandemic as well, but home prices and rental rates vary widely across the U.S. based on supply and demand.

If you aim for long-term growth, equity and profit, you’ll need to look beyond tangible factors like square footage and style. Those factors certainly drive up property values. From an investor’s standpoint, though, they hold less significance than historical market trends and the economic health of residents.

To determine the best local real-estate markets in the U.S., WalletHub compared 300 cities of varying sizes across 24 key indicators of housing-market attractiveness and economic strength. Our data set ranges from median home-price appreciation to home sales turnover rate to job growth. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.

Main Findings

11300300

Best Places to Buy a House

 

Overall Rank (1 = Best) City Total Score‘Real-Estate Market’ Rank‘Affordability & Economic Environment’ Rank
1Boise, ID68.05238
2Seattle, WA67.771121
3Frisco, TX67.73131
4Nashville, TN67.61333
5Gilbert, AZ67.23612
6Murfreesboro, TN66.62114
7Austin, TX65.74476
8Spokane Valley, WA65.38957
9Denton, TX65.09859
10Renton, WA64.915162
11Durham, NC64.81725
12Federal Way, WA64.697175
13Tacoma, WA64.3910135
14Allen, TX64.38256
15Cary, NC64.34295
16McKinney, TX64.31352
17Peoria, AZ64.271847
18Vancouver, WA64.071671
19Kent, WA64.0612145
20Surprise, AZ63.962414
21Colorado Springs, CO63.662167
22Bellevue, WA63.4620110
23Tempe, AZ63.352726
24Chandler, AZ63.272341
25Denver, CO63.1219153
26Huntsville, AL62.88429
27Roseville, CA62.843046
28Hillsboro, OR62.743427
29Everett, WA62.6714212
30Greeley, CO62.333190
Show All


Ranking by City Size

Overall Rank (1 = Best)Large CitiesOverall Rank (1 = Best)Midsize CitiesOverall Rank (1 = Best)Small Cities
1Seattle, WA
(67.77)
1Boise, ID
(68.05)
1Murfreesboro, TN
(66.62)
2Nashville, TN
(67.61)
2Frisco, TX
(67.73)
2Spokane Valley, WA
(65.38)
3Austin, TX
(65.74)
3Gilbert, AZ
(67.23)
3Denton, TX
(65.09)
4Colorado Springs, CO
(63.66)
4Durham, NC
(64.80)
4Renton, WA
(64.91)
5Denver, CO
(63.12)
5Tacoma, WA
(64.39)
5Federal Way, WA
(64.69)
6Charlotte, NC
(62.22)
6Cary, NC
(64.34)
6Allen, TX
(64.38)
7Aurora, CO
(62.20)
7McKinney, TX
(64.31)
7Kent, WA
(64.06)
8Fort Worth, TX
(61.86)
8Peoria, AZ
(64.27)
8Surprise, AZ
(63.96)
9Mesa, AZ
(60.99)
9Vancouver, WA
(64.07)
9Bellevue, WA
(63.46)
10Tampa, FL
(60.74)
10Tempe, AZ
(63.35)
10Roseville, CA
(62.84)
11Phoenix, AZ
(60.60)
11Chandler, AZ
(63.27)
11Hillsboro, OR
(62.74)
12Sacramento, CA
(60.39)
12Huntsville, AL
(62.88)
12Everett, WA
(62.67)
13Minneapolis, MN
(60.37)
13Reno, NV
(62.04)
13Greeley, CO
(62.33)
14Lexington, KY
(60.23)
14Hayward, CA
(61.61)
14Arvada, CO
(61.91)
15Raleigh, NC
(58.85)
15Elk Grove, CA
(61.43)
15Vacaville, CA
(61.75)
16Columbus, OH
(58.72)
16Overland Park, KS
(61.37)
16Carrollton, TX
(61.39)
17San Jose, CA
(58.50)
17Irving, TX
(61.27)
17North Charleston, SC
(61.08)
18Oklahoma City, OK
(58.04)
18Salem, OR
(61.08)
18Thornton, CO
(61.06)
19Arlington, TX
(57.19)
19Eugene, OR
(60.93)
19Tuscaloosa, AL
(60.89)
20Oakland, CA
(57.10)
20Lincoln, NE
(60.72)
20Clovis, CA
(60.25)
21Wichita, KS
(56.98)
21Grand Prairie, TX
(60.65)
21Wilmington, NC
(60.12)
22St. Paul, MN
(56.90)
22Fort Wayne, IN
(60.31)
22Santa Clara, CA
(59.69)
23Las Vegas, NV
(56.80)
23Sunnyvale, CA
(60.24)
23Longmont, CO
(59.47)
24Jacksonville, FL
(56.32)
24Madison, WI
(60.11)
24Broken Arrow, OK
(59.24)
25Portland, OR
(56.23)
25Lakewood, CO
(59.82)
25Manchester, NH
(59.20)
26Memphis, TN
(55.60)
26Henderson, NV
(59.82)
26Richardson, TX
(59.05)
27Cincinnati, OH
(55.45)
27Fort Collins, CO
(59.60)
27Athens-Clarke, GA
(58.65)
28San Diego, CA
(55.36)
28Orlando, FL
(59.46)
28Temecula, CA
(58.53)
29Tucson, AZ
(55.26)
29Spokane, WA
(59.35)
29Beaverton, OR
(58.29)
30Milwaukee, WI
(54.59)
30Chesapeake, VA
(59.08)
30Westminster, CO
(58.25)
31Fresno, CA
(54.55)
31Irvine, CA
(58.77)
31High Point, NC
(58.20)
32Anaheim, CA
(54.45)
32Glendale, AZ
(58.76)
32Yakima, WA
(57.96)
33Louisville, KY
(54.35)
33Scottsdale, AZ
(58.44)
33Fairfield, CA
(57.89)
34Riverside, CA
(54.35)
34Grand Rapids, MI
(58.39)
34Sterling Heights, MI
(57.48)
35Omaha, NE
(54.17)
35Santa Clarita, CA
(58.30)
35Kenosha, WI
(57.47)
36Atlanta, GA
(53.96)
36Ontario, CA
(58.30)
36Antioch, CA
(57.32)
37Houston, TX
(53.85)
37Port St. Lucie, FL
(58.21)
37Daly City, CA
(57.31)
38San Francisco, CA
(53.46)
38Modesto, CA
(57.98)
38Norman, OK
(56.93)
39Virginia Beach, VA
(53.41)
39Alexandria, VA
(57.72)
39Davie, FL
(56.83)
40Washington, DC
(53.39)
40North Las Vegas, NV
(57.55)
40Vista, CA
(56.53)
41Long Beach, CA
(53.35)
41Plano, TX
(57.54)
41Gresham, OR
(56.50)
42Kansas City, MO
(53.31)
42Garland, TX
(57.19)
42Palm Bay, FL
(56.36)
43Santa Ana, CA
(53.18)
43Chula Vista, CA
(57.16)
43San Mateo, CA
(56.36)
44Los Angeles, CA
(52.96)
44Jersey City, NJ
(57.10)
44Livonia, MI
(56.28)
45Stockton, CA
(52.71)
45Cape Coral, FL
(56.96)
45Vallejo, CA
(56.24)
46Pittsburgh, PA
(51.64)
46Fremont, CA
(56.67)
46Charleston, SC
(56.11)
47Dallas, TX
(51.47)
47Fontana, CA
(56.56)
47Santa Monica, CA
(56.09)
48Bakersfield, CA
(51.45)
48Greensboro, NC
(56.53)
48Centennial, CO
(56.07)
49Indianapolis, IN
(51.22)
49Laredo, TX
(56.34)
49Santa Maria, CA
(55.71)
50Tulsa, OK
(50.70)
50Moreno Valley, CA
(56.23)
50South Gate, CA
(55.70)
51El Paso, TX
(50.65)
51Pembroke Pines, FL
(55.90)
51Pueblo, CO
(55.62)
52San Antonio, TX
(50.08)
52Corona, CA
(55.84)
52Rialto, CA
(55.21)
53Albuquerque, NM
(49.47)
53Hialeah, FL
(55.51)
53Lowell, MA
(55.19)
54Cleveland, OH
(49.41)
54Oceanside, CA
(55.44)
54Plantation, FL
(55.10)
55Philadelphia, PA
(49.16)
55St. Petersburg, FL
(55.38)
55Carson, CA
(55.02)
56Honolulu, HI
(48.99)
56Santa Rosa, CA
(55.19)
56Carlsbad, CA
(54.98)
57Boston, MA
(48.73)
57Escondido, CA
(55.03)
57Lakeland, FL
(54.82)
58New Orleans, LA
(48.03)
58Winston-Salem, NC
(55.02)
58El Cajon, CA
(54.77)
59Corpus Christi, TX
(47.95)
59Salt Lake City, UT
(54.61)
59Cambridge, MA
(54.71)
60St. Louis, MO
(47.63)
60Pomona, CA
(54.56)
60Visalia, CA
(54.65)
61Miami, FL
(47.49)
61San Bernardino, CA
(54.49)
61Orange, CA
(54.60)
62New York, NY
(45.76)
62Springfield, MO
(54.46)
62Chico, CA
(54.55)
63Chicago, IL
(45.56)
63Garden Grove, CA
(54.44)
63Murrieta, CA
(54.46)
64Detroit, MI
(43.11)
64Richmond, VA
(53.88)
64Victorville, CA
(54.45)
65Baltimore, MD
(37.32)
65Rancho Cucamonga, CA
(53.79)
65Mesquite, TX
(54.37)
66Augusta, GA
(53.66)
66Yuma, AZ
(54.30)
67Oxnard, CA
(53.62)
67Ann Arbor, MI
(54.30)
68Knoxville, TN
(53.06)
68Fullerton, CA
(54.21)
69Tallahassee, FL
(52.93)
69Norwalk, CA
(54.20)
70Worcester, MA
(52.49)
70Lansing, MI
(54.14)
71Huntington Beach, CA
(52.40)
71Simi Valley, CA
(54.02)
72Salinas, CA
(51.96)
72Westminster, CA
(54.01)
73Columbus, GA
(51.89)
73Concord, CA
(53.97)
74Rochester, NY
(51.78)
74Burbank, CA
(53.66)
75Lancaster, CA
(51.70)
75Warren, MI
(53.47)
76Fort Lauderdale, FL
(51.55)
76Richmond, CA
(53.32)
77Norfolk, VA
(51.41)
77Pompano Beach, FL
(53.23)
78Glendale, CA
(50.74)
78Fort Smith, AR
(53.15)
79Hollywood, FL
(50.50)
79Waukegan, IL
(53.08)
80Providence, RI
(50.36)
80Davenport, IA
(52.97)
81Anchorage, AK
(50.34)
80West Covina, CA
(52.97)
82Palmdale, CA
(49.95)
82Costa Mesa, CA
(52.91)
83Aurora, IL
(49.83)
83Sunrise, FL
(52.89)
84Amarillo, TX
(49.63)
84Hampton, VA
(52.78)
85Little Rock, AR
(49.51)
85Inglewood, CA
(52.72)
86Newport News, VA
(49.04)
86Ventura, CA
(52.70)
87Des Moines, IA
(48.90)
87Miramar, FL
(52.47)
88Toledo, OH
(48.29)
88Green Bay, WI
(52.39)
89Montgomery, AL
(47.82)
89Naperville, IL
(52.33)
90Akron, OH
(47.35)
90Berkeley, CA
(52.23)
91Fayetteville, NC
(46.77)
91Compton, CA
(52.22)
92Springfield, MA
(46.68)
92Gainesville, FL
(52.22)
93Mobile, AL
(46.52)
93Roswell, GA
(52.00)
94Yonkers, NY
(46.24)
94Quincy, MA
(51.76)
95Birmingham, AL
(45.17)
95Boca Raton, FL
(51.75)
96Buffalo, NY
(44.42)
96Downey, CA
(51.61)
97Baton Rouge, LA
(43.22)
97Coral Springs, FL
(51.46)
98Newark, NJ
(41.32)
98Roanoke, VA
(51.44)
99Shreveport, LA
(41.16)
99Clearwater, FL
(51.08)
100Jackson, MS
(39.37)
100Savannah, GA
(51.01)
101Mission Viejo, CA
(50.91)
102Lynn, MA
(50.69)
103Boulder, CO
(50.63)
104Cedar Rapids, IA
(50.59)
105Brockton, MA
(50.53)
106El Monte, CA
(50.15)
107Allentown, PA
(50.15)
107Thousand Oaks, CA
(50.15)
109Miami Gardens, FL
(50.06)
110Torrance, CA
(49.86)
111Springfield, IL
(49.74)
112Elgin, IL
(49.38)
113West Palm Beach, FL
(48.65)
114Stamford, CT
(48.56)
115Portsmouth, VA
(48.31)
116Pasadena, CA
(47.89)
117New Haven, CT
(47.17)
118Dearborn, MI
(46.99)
119Santa Barbara, CA
(46.93)
120Sandy Springs, GA
(46.65)
121Erie, PA
(46.53)
122Joliet, IL
(46.52)
123Elizabeth, NJ
(45.92)
124Paterson, NJ
(45.00)
125Flint, MI
(44.73)
126New Bedford, MA
(44.47)
127Fall River, MA
(43.62)
128Rockford, IL
(42.81)
129Peoria, IL
(41.78)
130Hartford, CT
(41.24)
131Waterbury, CT
(41.05)
132Bridgeport, CT
(40.86)
133Dayton, OH
(38.44)
134Albany, NY
(38.22)
135Miami Beach, FL
(37.07)

Ask the Experts

Economic indicators point to a strong housing market, but does that mean it’s a good time to buy a home? We consulted a panel of experts for their insight. Click on the panelists’ profiles below to read their bios and thoughts on the following key questions:

  1. Is now a good time to buy a home? What economic indicators should potential buyers be watching?
  2. How has the pandemic affected housing prices and the home-buying process? What changes should we expect on the housing market during the upcoming months?
  3. Are foreign buyers driving up the cost of U.S. real estate? Which cities are most affected?
  4. How likely is it that the Federal Reserve will increase interest rates in the coming months? How will this impact the housing market?
  5. Why are Millennials still sitting out of the housing market? What can be done to increase homeownership rates for this cohort?
  6. In evaluating the healthiest housing markets, what are the top five indicators?

Methodology

In order to determine the best real-estate markets, WalletHub compared 300 cities across two key dimensions, “Real-Estate Market” and “Affordability & Economic Environment.”

We evaluated those dimensions using 24 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the healthiest housing market.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.

Each city in our sample was categorized according to the following population-size guidelines:

  • Large city: More than 300,000 residents
  • Midsize city: 150,000 to 300,000 residents
  • Small city: Fewer than 150,000 residents

 

Real-Estate Market – Total Points: 80

  • Home Value Forecast: Full Weight (~5.16 Points)
    Note: This metric is based on Zillow’s Home Value Forecast, which predicts the Zillow Home Value Index one year from June 2020.
  • Median Home-Price Appreciation: Full Weight (~5.16 Points)
  • Average Number of Days Until a House Is Sold: Full Weight (~5.16 Points)
  • Share of Homes Selling for a Gain: Full Weight (~5.16 Points)
  • Share of Listings with Price Cuts: Full Weight (~5.16 Points)
  • Share of ‘Underwater’ Homes: Full Weight (~5.16 Points)
    Note: This metric measures the share of homes with negative equity.
  • Home Sales Turnover Rate: Full Weight (~5.16 Points)
  • Ratio of Rent Price to Sale Price: Full Weight (~5.16 Points)
  • Foreclosure Rate: Full Weight (~5.16 Points)
  • Share of Foreclosure Re-sales: Half Weight (~2.58 Points)
  • Share of People Delinquent on their Mortgage Debt: Full Weight (~5.16 Points)
  • Number of Bank-Held Homes for Every 10,000 Homes: Full Weight (~5.16 Points)
    Note: This metric refers to unsold Real Estate Owned – or REO – housing units.
  • Vacancy Rate: Full Weight (~5.16 Points)
    Note: This metric was calculated as follows: Vacant Housing Units / Total Housing Units.
  • Buy vs. Rent Breakeven Horizon: Full Weight (~5.16 Points)
    Note: The “breakeven horizon” is defined by Zillow as the point, in years, at which buying a home becomes less expensive than renting the same home.
  • Share of Young Homes: Full Weight (~5.16 Points)
    Note: “Young Homes” refer to housing units built between 2010 and 2018.
  • Building-Permit Activity: Full Weight (~5.16 Points)
    Note: This metric measures the number of unit permits pulled per 1,000 residents.

Affordability & Economic Environment – Total Points: 20

  • WalletHub “States with the Best Health Infrastructure for Coronavirus” Score: Triple Weight (~5.45 Points)
    Note: This metric is based on WalletHub’s “States with the Best Health Infrastructure for Coronavirus” ranking.
  • Housing Affordability: Double Weight (~3.64 Points)
    Note: This metric measures home price as share of income.
  • Maintenance Affordability: Full Weight (~1.82 Points)
    Note: This metric measures maintenance costs as share of income.
  • Population Growth Rate: Full Weight (~1.82 Points)
  • Job Growth Rate: Full Weight (~1.82 Points)
  • Unemployment Rate: Full Weight (~1.82 Points)
  • Underemployment Rate: Full Weight (~1.82 Points)
  • Median Credit Score: Full Weight (~1.82 Points)

Source