The ranking used the U.S. News Housing Market Index, which looks at several data points, such as supply and demand. Metropolitan areas are given a score between 1 and 100 based on data from December 2023.
The top 10 hottest housing markets, according to U.S. News:
- No. 1 – Denver
- No. 2 – Raleigh, North Carolina
- No. 3 – Virginia Beach, Virginia
- No. 4 – Durham, North Carolina
- No. 5 – Charlotte, North Carolina
- No. 6 – Nashville, Tennessee
- No. 7 – Houston, Texas
- No. 8 – Portland, Oregon
- Tie 9 – Dallas-Fort Worth, Texas (tie)
- Tie 9 – San Antonio, Texas (tie)
Three other Colorado cities made the top 20: Fort Collins, at No. 12, Greeley at No. 15 and Colorado Springs at No. 19.
Why is the Denver market so hot?
U.S. News and World pointed to several potential factors for why Denver continues to be such a hot housing market.
For one, U.S. News said the area enjoys a relatively low unemployment rate, as well as few mortgage delinquencies and a low rental vacancy rate.
However, supply is a big issue working against Denver, with not enough houses to fuel the current demand. One of the ways this is measured is through the number of months that it would take for all current listings to be exhausted.
As of December, Denver’s housing supply only had enough listings to last 1.9 months if no new houses were added, which was below the nationwide average of 2.6 months.
Source: https://kdvr.com