On the Horizon: Markets to Watch in 2023 and Beyond

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Since all real estate is local, the National Association of REALTORS® identified which markets will outperform in 2023. In identifying these markets, NAR considered a variety of indicators that it views to be influential to a metro area's market, including:

1. Better housing affordability than the national level. Weakening affordability is the primary reason for this year's housing market cooling.
2. More renters who can afford to buy the median-priced home than at the national level. Homeownership rate trends depend on the ability of renters to become homeowners.
3. Stronger job growth than the national level. A strong job market typically supports housing demand as household incomes continue to grow.
4. Faster growth of information industry jobs than at the national level. Information industry jobs are one of the most well-paid jobs. These workers are paid about 50% more than the average employee.
5. A higher share of the information industry in the local GDP. The information industry is a rapidly growing part of the economy. When demand for this industry is growing in an area, that creates opportunities for the local economy to grow faster than in other areas.
6. Migration gains. When more people move into an area compared to those who move out, this means that more people will look for a home in this area as they will need a place to live in,
7. Share of workers teleworking. Teleworking has a different impact on affordable versus expensive areas.
8. A faster-growing population than the national average. Population changes can lead to a changing demand for housing.
9. Faster growth of active inventory than at the national level. Increasing inventory translates to more options for buyers.
10. A smaller housing shortage than at the national level. In the areas where housing supply meets better housing demand, buyers have more options.