Zillow predicts the hottest housing markets of 2023

Zillow Group (NASDAQ:Z, ZG) is looking into its housing market crystal ball to predict Charlotte, North Carolina, will be the year’s hottest housing market. Rounding out the forecasted top 10 housing markets are Cleveland, Pittsburgh, Dallas, Nashville, Jacksonville, Kansas City, Miami, Atlanta and Philadelphia.

“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.”

Zillow analyzed the 50 largest metro areas for its forecast ”“ seven were excluded due to missing data ”“ and the final call was based on 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.