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Zillow Names Charlotte as 2023’s Hottest Housing Market

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Zillow’s 10 hottest markets are based on factors such as expected home value growth and buyer demand

  • Relatively affordable metro areas dominated Zillow’s hottest housing markets list, led by Charlotte, Cleveland and Pittsburgh.
  • Buyers who can overcome acute affordability challenges will find a friendlier market than in recent, record-setting years.
  • San Jose, Sacramento and Minneapolis are projected to be the coolest markets.

Seattle, WA – Jan. 12, 2023 (PRNewswire) Charlotte will be this year’s hottest housing market, according to a Zillow® analysis. Cleveland, Pittsburgh, Dallas and Nashville join Charlotte in the top five of the Zillow 2023 hottest markets list.

“This year’s hottest markets will feel much chillier than they did a year ago,” said Anushna Prakash, economic data analyst at Zillow. “The desire to move hasn’t changed, but both buyers and sellers are frozen in place by higher mortgage rates, slowing the housing market to a crawl. Markets that offer relative affordability and room to grow are poised to stand out, especially given the prevalence of remote work. The good news for buyers is that monthly housing costs have stopped climbing. Home shoppers who can overcome affordability hurdles will find a more comfortable market this year, with more time to consider options and less chance of a bidding war, even if they’re shopping in one of the hottest markets.”

Zillow’s 10 hottest housing markets of 2023:

  1. Charlotte
  2. Cleveland
  3. Pittsburgh
  4. Dallas
  5. Nashville
  6. Jacksonville
  7. Kansas City
  8. Miami
  9. Atlanta
  10. Philadelphia

Unlike in recent years, fast-growing home values are not a requirement for making this year’s list of hottest markets. Higher mortgage rates and severe affordability challenges have chilled demand and brought home values down from last summer’s peak. Home value growth in Charlotte is expected to be much slower this year than its 11.8% pace of 2022, as is the case in all of Zillow’s 2023 hottest markets and the U.S. as a whole.

Zillow's 2023 hottest markets
Zillow’s 2023 hottest markets

Charlotte ranks second among large markets in projections for both home value growth and growth in owner-occupied households, which helped shoot it to the top of this year’s hottest markets list. Both Cleveland and Pittsburgh ranked high in projections for time on market and new jobs per new home built.

There are only four holdovers from last year’stop 10, an indicator of how much the housing market has changed in just one year. Last year’s hottest market, Tampa, just missed the cut this year, coming in at 11. Austin, 2021’s hottest market, has fallen all the way to 29th on the list, in large part because it now ranks among the country’s most expensive large markets. San Jose, Sacramento, Minneapolis–St. Paul, Denver and San Francisco make up the five coolest large markets in Zillow’s 2023 projections.

While affordability remains a major hurdle, the good news for home buyers is that the cost of a typical mortgage fell in November, thanks to lower mortgage rates. Zillow economists expect affordability to stabilize in 2023, if not improve, making it easier for households to budget and plan for their housing decisions. For those able to buy now, less competition from other buyers means homes are staying on the market longer, many sellers are cutting their list price, and there is less chance of being caught in a bidding war.

Methodology
Zillow analyzed the 50 largest U.S. metro areas to forecast the hottest, or most competitive, housing markets of 2023. Seven metro areas were excluded due to missing data. The analysis incorporates expected home value appreciation from December 2022 through November 2023, the anticipated change in home value appreciation from 2022, new jobs per new housing unit permitted, an estimate of the net new number of home-owning households based on current demographic trends and the speed at which homes are being sold. 

About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life’s next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting, or financing with transparency and ease.

Zillow Group’s affiliates and subsidiaries include Zillow®; Zillow Premier Agent®; Zillow Home Loans™; Zillow Closing Services™; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+™, which houses ShowingTime®, Bridge Interactive®, and dotloop®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).

SOURCE Zillow

CoreLogic’s Major US Housing Market Trends of 2022

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After more than a decade of overheated growth, 2022’s rapid increase in mortgage rates put the brakes on the U.S. housing market

Irvine, CA – January 05, 2023 (BUSINESS WIRE) CoreLogic, a leading global property information, analytics and data-enabled solutions provider, released the major U.S. housing trends wrap-up for 2022.

Year-over-year home price growth increased for the 130th straight month in November, but gains have slowed significantly since the spring. Still, most homeowners were in positive-equity territory throughout the first three quarters of the year, and mortgage delinquencies and foreclosure rates remain near historic lows.

“The wild ride known as the U.S. housing market slowed dramatically in the fall of 2022, as mortgage rates surged and home prices remained high,” said Molly Boesel, principal economist at CoreLogic. “Home sales started strong in early 2022 but took a nosedive later in the year. On the plus side, generous amounts of home equity will protect many borrowers from experiencing the type of foreclosure activity seen during the Great Recession.”

Here is a high-level overview of major U.S. housing market trends in 2022 using data from CoreLogic’s regular economic reports, which include information dating back several decades, as well as analyses and unique insights from the company’s Office of the Chief Economist.

Home Price Growth Declined Significantly Between Spring and Fall

According to CoreLogic’s monthly Home Price Index data, U.S. year-over-year home price growth reached 20.1% in April 2022, the highest level recorded in more than two decades. However, appreciation has tapered off every month since, falling to 8.6% in November.

Sun Belt states led the nation for annual home price gains for most of the year, notably Florida, which posted the highest gain in the country from February to November. This trend partially reflects Americans migrating from more expensive areas in the West to more affordable areas of the country. However, price growth in Southern states has followed the national trend and slowed in recent months.

The year’s spike in interest rates is the primary factor in moderating home price growth, with Freddie Mac data putting 30-year fixed-rate mortgages at 3.22% in early January compared with a yearly high of 7.08% in mid-November. Despite the slowdown, a shortage of available homes for sale, strong mortgage underwriting standards and an unemployment rate that has returned to pre-pandemic levels are keeping the housing market relatively healthy, making a major downturn unlikely.

Home Equity Growth Remains Strong Despite a Cooling Market

This year’s strong home price growth led to robust home equity gains across the country for nearly two-thirds of American homeowners with a mortgage.

CoreLogic’s quarterly Home Equity Report shows that in the first quarter of 2022, borrowers gained a collective $3.8 trillion in home equity since the first quarter of 2021, a 32.2% increase. During that period, U.S. homeowners with a mortgage gained an average of $64,000.

But since home price growth is the primary driver of equity growth, increases slowed as prices cooled. In the third quarter of 2022, homeowners gained a total of $2.2 trillion in equity than during the same quarter in 2021, an increase of 15.8% and averaging $34,300 per borrower.

Mortgage Performance Is Healthier Than Ever

CoreLogic’s upcoming Dec. 29 Loan Performance Index shows that, despite 2022’s surge in mortgage rates, almost all borrowers were able to meet their monthly payments this year.

For the first 10 months of 2022, the number of homeowners with a mortgage who were at least 30 days late on their payments hovered between 3.4% and 2.7%, with the latest data reporting a 2.8% overall delinquency rate in October. On an annual basis, mortgage delinquencies dropped for the 19th consecutive month in October.

Foreclosure rates remained near record lows throughout most of 2022, bottoming out at 0.2% in February and remaining at 0.3% through October. The fact that 99% of borrowers have lower mortgage rates locked in than current rates helps prevent most homeowners from making late payments or defaulting on them altogether.

Rent Price Growth Trends Follow Home Price Patterns

Like home price gains, U.S. rental prices relaxed in 2022, reaching single digits in October for the first time since June 2021.

CoreLogic’s monthly Single-Family Rent Index shows that year-over-year rent growth slowed to 8.8% in October, down from 13.9% in the spring of 2022. Florida cities led the nation for annual rent increases for much of the year, with Miami and Orlando holding the top two spots, respectively, since January.

Besides monthly and quarterly reports on the state of the U.S. housing market, CoreLogic’s expert economic team regularly weighs in on data and trends that affect all parties involved in the property industry. Check back frequently for the Office of the Chief Economist’s commentary here, and keep up with CoreLogic Intelligence posts for leading property industry data and insights, including information on climate change, natural disaster consequences, construction trends and more.

About CoreLogic

CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the property of their respective owners.

Contacts

Robin Wachner
CoreLogic
newsmedia@corelogic.com

US Rent-to-Own Market Report 2022: Surging Internet Penetration Boosting Awareness and Driving Growth

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Dublin, CA – Dec. 6, 2022 (PRNewswire) The “The US Rent-to-Own Market: Analysis By Distribution Channel (Brick & Mortar and E-commerce), Size & Forecast with Impact Analysis of COVID-19 and Forecast up to 2027” report has been added to  ResearchAndMarkets.com’s offering.

Rent-to-own (also known as “lease purchase”) is a contract that allows prospective buyers to lease a home with the option to purchase it later. The tenant/buyer pays the landlord/seller an amount equal to the rental amount on a monthly basis. A portion of the monthly payment is then applied to the home’s purchase price. During or at the end of the lease period, the tenant/buyer has the exclusive right to purchase the home on the terms agreed upon by both parties. In 2021, the US rent-to-own market was valued at US$10.48 billion, and is probable to reach US$15.53 billion by 2027.

The rent-to-own industry is anticipated to showcase a positive outlook during the forecasted years as primary and subprime lenders would tighten credit measures. Furthermore, demand for essential products (appliances and computers) is increasing and would further intensify in the approaching times. The US rent-to-own market is projected to grow at a CAGR of 6.77%, during the forecast period of 2022-2027.

Market Segmentation Analysis:

By Distribution Channel:

The report splits the US rent-to-own market into two distribution channel: Brick & Mortar and E-commerce. E-commerce channel held a share of 41% of the market share in 2021 and is expected to grow at a CAGR of 10.08%, in the forecasted period. Stay at home and social distancing orders have been imposed all across the US due to the outbreak of COVID-19. This in turn has led to more and more people preferring e-commerce channels for purchasing various things on lease.

The US rent-to-own Market Dynamics:

Growth Drivers: The rising urban population resulted in a positive influence on rent-to-own market. Consumers find it more stress-free and convenient way to use rent-to-own services instead of buying the products as there is the possibility of shifting to different locations for different reasons. Further, the market is expected to increase due to significant population of international migrants, surging GDP growth, rising disposable income, growing millennial population, rising virtual rent-to-own market, etc.

Challenges: Rent-to-own facilities is tailed by various issues such as lack of customer security. For example, a lease-option is accompanied by similar risks for tenants/buyers as a traditional mortgage, excluding the benefit of potential recovery. The other challenge that the US rent-to-own market face is dependency on vendors, suppliers and products, low profit margin, etc.

Trends: A major trend gaining pace in the US rent-to-own market is hike in internet penetration. With increasing use of internet in all phases of life, people have been able to reach and compare many products and knowledge on various industries provided on internet. This opportunity is seized by many rent-to-own companies and they are now providing all the information regarding the new launched services and existing services on the internet. More trends in the market are believed to augment the growth of the US rent-to-own market during the forecasted period include rollout of smartphone as new category, rapid pace in technological advancements, etc.

Impact Analysis of COVID-19 and Way Forward:

The epidemic of Coronavirus illness (COVID-19) had a significant impact on the US rent-to-own market, as governments around the world implemented lockdowns. However, the market’s total impact was favorable in 2020. The enterprises saw a loss in revenue for the first quarter of the year, however the industry recovered due to increased demand for house ownership, higher rental prices, and other factors. The rent-to-own industry in the US is likely to grow further in the future, owing to the rapid speed of technology improvements, more e-commerce in home purchases, and so on.

Key Topics Covered:

1. Executive Summary

2. Introduction

3. The US Market Analysis

4. Impact of COVID-19

5. Market Dynamics

6. Competitive Landscape

7. Company Profiles

Companies Mentioned

  • Rent-A-Center Inc.
  • goeasy Ltd.
  • The Aaron’s Company, Inc.
  • Co-Ownership Organization
  • FlexShopper Inc.
  • EZ Furniture Sales & Leasing
  • Buddy’s Home Furnishings Company
  • Snap Finance Company
  • Home Partners of America Company (HPOA)
  • Dream America Organization
  • Zerodown
  • Verbhouse
  • Action rent-to-own
  • Divvy Homes

For more information about this report visit https://www.researchandmarkets.com/r/gamqs2

Media Contact:

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com

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SOURCE Research and Markets