Jill Jaracz6-minute read
UPDATED: July 11, 2023
Prospective home buyers in recent years have seen unprecedented swings in the market – high demand during the COVID-19 pandemic increased prices. Now, higher interest rates are causing fewer people to put their homes on the market. But in some cities, hope is on the horizon for home buyers as more listings enter the market.
Rocket HomesSM used its internal listing data to see which cities have the most homes for sale per capita so far this year. Cities were ranked by the average number of listings each month for every 10,000 residents. To be included, each city had to have recorded at least 300 homes per sale each month on average. Boise City, Idaho, was not ranked due to insufficient data.
Many cities on this list are Sun Belt cities that experienced building booms in the last couple of years. Those booms – along with cooling rates of people moving to this region – have created a more robust housing supply than in other parts of the country.
The median sale price was lower than the median list price in every city on this list except one, showing a disconnect between pricing and the actual market. This could mean buyers will have the upper hand looking in these places.
Getting a mortgage pre-approval gives you a clearer picture of how much you can spend, and shows sellers that you’re serious. Here’s how to get preapproved for a mortgage.
Competition to buy real estate in the Portland area may ease up due to an exodus of over 10,000 people from Multnomah County. That said, Portland's housing market still has low inventory – new listings in the first quarter of 2023 were down 25% to 6,389. New single-family home construction is also down, with permits dropping 48% to 335 by the end of 2022.
A bright spot is in multifamily housing. Construction permits increased 16% to 782 in 2022, and there’s potentially more multifamily housing in the works, as the Portland City Council passed two incentives in March 2023 to spur office-to-residential conversion in the downtown area.
Between April 2020 and July 2021, over 12,600 people moved to South Florida’s third-largest city, but even with the influx of people, homes are available. Inventory in Port St. Lucie is on the rise. The Florida REALTORS® trade association forecasts the city to have 6.2 months' worth of inventory by mid-2023, the second-highest supply of homes in the country.
New development is contributing to the available inventory. A single-family home golf and country club community opened in April 2023, with another 900-home golf course community planned to start sales in 2023.
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When interest rates started rising in 2022, the Las Vegas real estate market saw a correction in home prices, and the number of homes sold dropped 41% from 2021 to 2022. This has contributed to a buyer's market, allowing those on the sidelines to ask for price reductions or seller incentives.
At the beginning of 2023, the inventory of houses was up 199.3% from January 2022, and homes are taking longer to sell. Not to mention monthly permits for both new single-family and multifamily homes have fallen since the beginning of 2022.
Las Vegas is now facing a drought that could hamper growth, even though people are still relocating to Southern Nevada. In 2022, the area's population was about 2.3 million people, and it's expected to top 3 million by 2024, according to the University of Nevada, Las Vegas.
Housing affordability has improved in Atlanta over the last year, according to the Atlanta Federal Reserve. In 2022, a median-income household would spend about 40% of its earnings on housing, but that's since dropped to 34.7%, much closer to the ideal rate of 30%.
New construction in the city is a mixed bag. Developers are investing less in building new single-family homes – permits declined 41% from January 2022 to 1,348 in January 2023. However, the amount of multifamily construction planned for the city skyrocketed 126% in January 2023, with just over 2,000 multifamily construction permits issued that month compared to January 2022.
Higher interest rates have led to a slower number of home sales in Orlando in 2023, although it's still a seller's market due to low housing inventory. Even though the number of homes on the market doubled in February 2023 compared to a year prior, those 5,555 homes represented just 2 1/2 months of inventory. A more balanced market would have 5 to 6 months of inventory.
New construction has also softened due to a lack of confidence in area builders. The state may also change its building codes in the wake of the damage caused by Hurricane Ian, contributing to a lack of builders' interest in creating more inventory.
Arizona's second most expensive ZIP code attracts many millionaires. The area's new housing projects reflect that wealth. Three developments on the north side of the city will bring over 2,100 luxury condos and apartment rentals to the city by 2025.
Scottsdale is one of many cities in the state grappling with water availability due to the waning amount of water in the Colorado River – its main water supply. In January 2023, the city cut off water access to Rio Verde Foothills, a nearby unincorporated community, in an effort to make sure Scottsdale retains enough water for its own residents.
While Miami is still a popular market, crowded open houses and multiple bidders are a thing of the past. In February 2023, residential sales declined nearly 40%, with only 1,692 properties changing hands.
The number of available properties may also go down in future years, as residents are staying in their homes longer. Builders are also showing less confidence in the Miami market, as new permit approvals in the last quarter of 2022 decreased sharply compared to the same time period in 2021. Single-family home permits dropped nearly 37% to 1,085, and multifamily housing permits decreased almost 29% to 3,300 units.
When buying a home, it’s critical to know how much mortgage you can get, and how much mortgage you can afford. Here’s how to find out how much of mortgage you qualify for.
Leading the country for the most homes for sale, Cape Coral is the fourth Florida city to land on this list. In the first quarter of 2023, the modestly sized city – its population hovers just above 200,000 residents – had 5,917 homes listed for sale.
Hurricane Ian also caused issues for the city's real estate market in 2022. Over 5,000 homes were destroyed, and about 30,000 homes were damaged in Lee County, which includes Cape Coral. Homeowners who can't afford to rebuild have put their properties on the market, some of which have been bought by developers who plan to renovate and resell the homes at higher prices.
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