The U.S. housing market is seeing changes as the summer season winds down, and certain cities are standing out as the hottest markets. According to U.S. News & World Report, Austin, Texas, and Kansas City, Missouri, tied for the top spot, according to the U.S. News Housing Market Index (HMI), which ranks areas based on demand, supply, and financial data. As 30-year mortgage rates drop 50bps for the first time in years, buyers and sellers are feeling hopeful for a market rebound.
The Top Housing Markets in the U.S.
- Austin, Texas – HMI Score: 72.8
Austin is booming with job growth and a steady influx of new residents. It has strong demand, with very few rental properties sitting vacant and a demand score of 82.2. While the median home price dropped to $453,000, Austin remains popular thanks to its diverse economy and cool cultural vibe.
- Kansas City, Missouri – HMI Score: 72.8
Tied with Austin, Kansas City has seen a rise in demand driven by its affordability. The median home price here went up by 5.7% to $350,000, making it a hot market for buyers and investors. The city has a strong job market and tight housing supply, with just 1.8 months’ worth of homes available.
- Philadelphia, Pennsylvania – HMI Score: 72
Philadelphia has seen renewed demand thanks to its affordable housing and access to jobs. The city’s mix of affordability and urban lifestyle has made it one of the most resilient housing markets, attracting more people each year.
- Omaha, Nebraska – HMI Score: 71.9
Omaha shines with great financial numbers, scoring 95.4 in the financial category. It’s a very affordable market, and Omaha’s steady job growth makes it a great choice for homeowners and investors. - Houston, Texas – HMI Score: 71.8
Houston rounds out the top five with high demand and solid financial stability. The city offers affordable housing prices and job growth, making it attractive to renters and buyers.
What’s Driving These Markets?
The cities at the top of this list share common features: growing job markets, affordable housing, and a steady supply of homes. Cities like Austin and Kansas City provide a nice balance of urban amenities without the high prices you’d find on the coasts.
Housing Trends to Watch
According to U.S. News & World Report, it’s good to keep an eye on markets like Denver, North Port (Florida), and Durham, North Carolina, which have all improved in their rankings between December 2023 and June 2024. Baltimore and New York City are also seeing rising demand, even as the economy fluctuates.
As the housing market stabilizes, expect Austin, Kansas City, and Omaha to keep doing well. With lower mortgage rates and strong job growth, these cities are ideal for buyers and investors.
Invest in These Markets with America Mortgages’ Rental Coverage+ Loan Program
For investors, America Mortgages’ Rental Coverage+ Loan Program is a great way to break into these hot markets. This program lets you qualify for a loan based on the property’s rental income, not your personal income. Here’s what you get:
Key Features:
- Property Type: 1-4 units (one property)
- Minimum Loan Amount: US$100,000
- Loan-to-Value: Up to 80% for purchase & 70% for cash-out
- Underwriting: Based on the property’s rental income
- Credit Requirements: No U.S. credit required
- Income Requirements: No personal income required
- Closing Time: 30-45 days
If you’re interested in investing in U.S. real estate, whether you’re a U.S. expat or foreign national, America Mortgages is here to help. You can schedule a chat with a loan officer anytime, or if you want to speak to someone right away, call us at +1 (845) 583-0830. We’re ready to assist! You can also reach us at
[email protected] or visit our website at www.americamortgages.com to get started.
