While numerous metropolitan areas across the United States have transitioned into buyer's market conditions, characterised by an increased inventory of homes relative to active shoppers, the overall purchasing experience often remains challenging for prospective buyers. However, this is not universally true. Zillow, the prominent real estate marketplace, has unveiled its annual ranking of the ten most favourable locations to purchase a home this year, featuring some unexpected frontrunners.
Criteria for a Buyer-Friendly Market
Zillow's analysis evaluated several key factors to rank major US housing markets. The leading markets identified are currently experiencing a deceleration in home price growth, with modest gains anticipated to resume in the coming months. Crucially, these top-ranked areas demand a significantly smaller proportion of a typical local earner's income to service the mortgage on a median-priced home.
Reduced Competition: A Key Advantage
A primary driver behind these markets favouring buyers is the notably reduced competition among house hunters. This environment affords potential buyers more time to conduct thorough research, view multiple properties, and negotiate prices with greater leverage.
Orphe Divounguy, a senior economist at Zillow, explained: 'Home shoppers have room to breathe in these buyer-friendly markets. Lower competition gives buyers more time to decide and wiggle room to negotiate, adding up to a less stressful shopping experience.'
Indianapolis, Indiana: The Top Performer
Indianapolis, Indiana, secured the number one position on Zillow's list. With typical homes priced around $283,040 and property values forecast to appreciate by approximately 2.9 percent this year, the market presents a compelling opportunity to acquire a property at a reasonable cost while building equity.
On average, buyers in Indianapolis would need to allocate only about 27 percent of their typical annual income to cover mortgage payments. This stands in stark contrast to notoriously expensive markets such as Los Angeles, where the figure is 67 percent, or San Jose at 62.6 percent.
Beyond Affordability: The Appeal of Indianapolis
While best known globally for hosting the legendary Indianapolis 500 motor race, the city boasts a rich sports culture with teams like the Colts and the Pacers. It also features historic monuments, a burgeoning arts scene, and a central geographic location that has earned it the moniker 'Crossroads of America'.
For homebuyers, Indianapolis delivers a rare combination of affordability and high livability. Property prices and taxes are lower than in many major metropolitan areas, while the local economy demonstrates stability across healthcare, technology, manufacturing, and logistics sectors. Residents enjoy a high quality of life with a walkable downtown core, family-oriented neighbourhoods, ample parkland, and excellent connectivity for travel throughout the Midwest.
Other Leading Markets
Atlanta, Georgia
Ranking second is Atlanta, Georgia. The average home price here is $374,117, with values expected to grow by 1.9 percent over the next year. Mortgage payments would consume roughly 30 percent of a typical buyer's income.
Atlanta is renowned for its historical significance, substantial cultural influence in media and entertainment, and its status as a global transportation hub, home to the world's busiest airport. It is a major corporate centre hosting headquarters for companies like Coca-Cola, Delta Air Lines, and The Home Depot, complemented by a vibrant culinary and sports scene. The metro area offers diverse neighbourhoods and strong job growth in technology, finance, film, and logistics, underpinning long-term housing demand.
Charlotte, North Carolina
Charlotte, North Carolina, takes third place. The typical home costs $379,228, with values projected to rise about 2.6 percent. Buyers can expect to spend approximately 31 percent of their income on a mortgage.
Charlotte is a national hub for banking and finance, hosting Bank of America and a significant presence for Truist. It is also famous for its NASCAR heritage, expanding skyline, and thriving food scene. The city successfully blends a modern urban centre with verdant residential areas and provides easy access to the Blue Ridge Mountains and nearby lakes. Robust population and job growth in finance, technology, and healthcare fuel steady housing demand, with affordability still favourable compared to many East Coast metros.
The full Zillow ranking highlights a trend towards markets where buyers can find not only financial accessibility but also improved negotiating power and a more measured purchasing process, a welcome shift in the current real estate landscape.
