When the topic of the "fastest-growing housing markets" is brought up, what comes to mind is probably major metros like New York, Seattle, and San Francisco.

Some other cities that have been stealing the spotlight for ages, like Miami and Las Vegas, might also come to mind. But as it turns out, metro areas that are seeing the fastest growth year over year happen to be the smaller, lesser-known markets.

Surprisingly, none are in New York or California, according to a recent National Association of Realtors (NAR) report. Rather, the hottest markets are mostly clustered in the South.

NAR identified these hottest housing markets of 2023 by weighing multiple factors, including affordability, job growth, inventory levels, population growth, and migration gains, and comparing them with the national levels.

What Makes These Markets Hot?

A hot housing market can be defined as one where homes are selling fast, measured by the number of days on the market, and where properties are getting a lot of attention from buyers.

In a hot market, homes move fast. 

That's why the hottest markets often have some of the highest growth rates. Other than the inherent commonalities (high demand and fast selling), these markets also tend to be affordable.

More importantly, these markets register continuous price increases. 18% of the markets analyzed by NAR registered a double-digit annual price appreciation.

The Top 4 Fastest Growing Housing Markets in the US

Without further ado, here are the fastest-growing housing markets in 2023.

1. Atlanta, Georgia

According to NAR, Atlanta is the fastest-growing housing market in 2023. Among the 179 metro areas analyzed by the National Association of Realtors, Atlanta was the only one that met all 10 growth indicators, including affordability, population growth, and employment conditions.

The metro area, dubbed the "New York of the South," ranks first among the fastest-growing housing markets for three primary reasons:

     •  It's more affordable than comparing cities in the US
     •  Its population is growing frenetically, and 20% of renters there can afford a median-priced home, which is higher than the national average.
     •  The city enjoys a robust and growing job market and is home to leading corporations like Apple, Visa, and Microsoft.

The demand for housing in Atlanta continues to outpace supply, making it an extremely hot market. As a second-tier city in America, Atlanta is known for its thriving hip-hop culture and high-traffic airport and also plays a prominent role in Civil Rights history.

2. East Austin

Austin makes a strong case for being one of the fastest-growing housing markets and for a good reason. The demand for properties in Austin, particularly East Austin, keeps growing, fueled largely by the movement of giant corporations like Apple, Tesla, and Amazon.

For these reasons, average home prices in Austin more than doubled between 2010 and 2023, and the city is now ranked among the country's most expensive places to live.

While the home prices in Austin are 19% higher than the national average, there are many places to live in East Austin that are more affordable than Central Austin. These include Holly District, University Hills, Govalle, French Places, and Windsor Park.

With its energetic atmosphere, rich culture, ample parks, numerous museums, and a ton of recreational activities, East Austin is the place to be for those looking for an affordable yet lively place to live in Austin, Texas.

3. Charlotte, North Carolina

Charlotte, NC, continues to be one of the best places to live in America, with a great food scene and charming neighborhoods.

With a lower-than-average cost of living, favorable climate, and a strong financial industry, it's no wonder Charlotte is one of the fastest-growing cities in the US. When it comes to affordability, the cost of living in Charlotte, NC, is 5% lower than the national average.

Charlotte is also experiencing tremendous job growth, with a 45.2% increase expected in the next ten years. The city is also home to major corporations, including Wells Fargo, Amazon, Duke Energy, Honeywell, and Bank of America.

4. Jacksonville, Florida

Jacksonville might not ring any bells when it comes to the hottest real estate markets, but it's actually one of the fastest-growing markets in 2023.

Located on the Atlantic coast of Florida, the city boasts over 1 million residents in the metro area, and the population is growing pretty fast. The growth is attributed to its strong job market, as employment in the area has registered exponential growth month over month.

When it comes to affordability, Jacksonville is the place to be in Florida. 

The cost of living in the city is 5% lower than the national average, and the median property price is also lower than the average. This has skyrocketed the demand for properties in the area, making Jacksonville a go-to place for anyone looking to live in Florida.

Wrapping Up

That's it! Our list of the top fastest-growing housing markets in 2023. These markets are characterized by affordable housing, increased job and population growth, and availability of amenities that make the markets attractive to locals and foreigners.

Other fast-growing markets to check out include Nashville, Tampa, Raleigh, Dallas, Orlando, and Phoenix, Arizona.