Smaller, Warmer Metros Are Becoming America’s Next Emerging Real Estate Markets
Throughout the pandemic, unlucky buyers in major cities across the U.S. flocked to smaller metros, suburbs, and even rural areas for more affordable housing options and less market competition, but according to Realtor.com, that trend may be moving in reverse. The quarterly Wall Street Journal/Realtor.com Emerging Housing Markets Index suggests that pricier, more populated markets could see strong growth in the months ahead.
The average populations of the top 20 up-and-coming real estate markets surpassed 500,000 residents, and many of the emerging cities were located in warmer regions like Florida and Hawaii as northern buyers look to escape the cold during the winter months.
Warmer weather markets dominated the top of this list, with Naples, FL, and North Port, FL, metros, which include Sarasota, snagging the top two spots. Both markets are more expensive than the national median price tag of $375,000, according to Realtor.com data for December.
They were followed by Kahului, HI. The median list price was $667,000 in Naples, $445,000 in North Port, and $937,000 in Kahului.
The top emerging markets generally have stronger economies, low unemployment, and higher wages. But residents are more likely to need that extra cash as the cost of living tends to be more expensive in these markets.