The 10 Best Cities to Buy a Home in 2023 are all in the South

Even with rising housing costs discouraging purchases, some real estate markets will remain hot in 2023, largely due to their relative affordability compared to the rest of the U.S., a new forecast shows. The top locations have another thing in common: they are all in the South.

Based on a variety of factors, including housing affordability, job growth, migration gains and housing supply, the National Association of Realtors (NAR) analyzed 179 markets to determine where the most value will be offered to buyers. The data is for the most recent year ending October 2022 and reflects expected buyer demand in 2023.

The average price of homes in some of these markets is no cheaper than the national average of $398,500. However, these cities rank high on other metrics, such as job growth or housing supply.

The top 10 best places to buy a home in 2023, according to NAR:

1. Atlanta-Sandy Springs-Marietta, Georgia

The median home price: $371,200.
With major tech companies like Apple, Microsoft and Visa opening in Atlanta in recent years, the city has a steady job market. Atlanta's metro-area remains relatively affordable compared to other regions of the country. More than 20% of renters can afford to purchase a median-priced home in the area, based on a calculation that includes a 10% down payment. The national average is 15.1%.

2. Raleigh, North Carolina

Median home price: $460,500.
Raleigh is a fast-growing technology center with low unemployment. Home prices here have risen nearly 30% since 2020. The median home price is around $500,000, making it the most expensive of the top 10 markets for 2023. However, Jay Nelson, director of public relations for the Raleigh Regional Association of Realtors, told The News & in a recent interview;

3. Dallas-Fort Worth-Arlington, Texas

Median home price: $390,100.
Dallas-Fort Worth is another new tech hub in the U.S. with job growth nearly double the national average, which was 3.4 percent in the year to October 2022. While the supply of housing here is below the national average, inventory grew in 2022 and the number of active listings tripled the national average, according to NAR.

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4. Fayetteville-Springdale-Rogers, Arkansas-Missouri

Median home price: $328,400.
This metro-region is home to three Fortune 500 companies - Walmart, Tyson Foods and J.B.'s. Hunt Transport Services. It ranks second among NAR's top 10 rankings for housing affordability. It is also a growing market with an annual population growth rate of 2%, well above the national average of 0.01%.

Home prices are also lower here, second only to Huntsville, Alabama on this list. The number of renters able to afford a typical home is nearly double the national average.

5. Greenville-Anderson-Mauldin, South Carolina

Median home price: $335,400.
Housing here is as affordable on average as the rest of the country, but job growth in the area is strong, especially for high-paying information technology jobs such as programming or web development. There are also more homes to choose from, as housing supply in 2022 is double the national average.

6. Charleston-North Charleston, South Carolina

Median home price: $416,800.
Of the top 10 rankings, Charleston is second only to Raleigh for the highest median home price. It is also below the national average for affordability. However, this fast-growing market has strong migration and job growth that is nearly double the national average.

7. Huntsville, Alabama

The median home price: $327,500.
The most populous city in Alabama is the most affordable area for housing among this list. Nearly 30% of renters can afford a typical home with a 10% down payment, nearly double the national average. NAR predicts that growing job opportunities and low cost of living will continue to attract even more immigrants in 2023.

8. Jacksonville, Florida

Home prices in Jacksonville are nearly comparable to the median price in the U.S., but it's more affordable than other areas of the state, according to NAR. The qualified income to buy a median-priced home with a 10% down payment is about $98,000. That's less than most major metro areas across the state, including Miami, where qualified income with a 10% down payment is $140,000. Jacksonville also has a strong labor market and a good supply of housing compared to the rest of the country.

9. San Antonio-New Braunfels, Texas

Median home price: $342,700.
San Antonio became one of the migration hotspots during the pandemic, especially from California, where housing prices and cost of living are typically higher. The city has also become a popular destination within the state of Texas itself. Many potential buyers have moved to San Antonio from nearby Austin, mostly because of lower home prices. In San Antonio, residents earning $85,000 can afford a median-priced home including a 10% down payment, far less than the $130,000 required in Austin. Job growth is also above the national average.

10. Knoxville, Tennessee