According to Zillow’s annual predictions, Indianapolis will be the fourth hottest real estate market in the United States this year. The online real estate listing site has forecasted a dynamic real estate landscape for the 50 most populous metropolitan areas, and Indianapolis is high on the list.
The three cities that outranked it were Buffalo, Cincinnati and Columbus.
Zillow’s analysis reveals that most hotspots hail from the Midwest’s Great Lakes region and the Southeast. Buffalo claims the coveted title of the hottest 2024 housing market, attributed to a surge in job creation outpacing new home construction projects. The steady projection for home values adds to Buffalo’s appeal.
Zillow’s rankings are not arbitrary. They stem from a meticulous examination of various factors influencing the housing market. The analysis considers forecasted home value growth, recent housing market velocity, projected labor market changes, home construction activity and the number of homeowner households.
Market challenges and slowdowns
Despite the optimism, Zillow acknowledges challenges in the real estate industry. Even previously fast-growing markets will experience significant slowdowns. High mortgage rates, the highest since 2008, are one reason for this change. One report estimates that an income of $81,794 is necessary to afford an average home in Indianapolis.
The persistent scarcity of homes for sale is partly due to the reluctance of baby boomers to sell their homes as they age. Simultaneously, millennials are entering their prime home-buying years, further intensifying the demand for available housing.
According to Zillow, the average cost of a home in Indianapolis is $217,513, which is lower than the U.S. average of $347,415.