Buffalo named hottest housing market in 2024: report

Real Estate

By Patrick Reilly

Snowy Buffalo is slated to have the hottest major housing market in 2024, according to a report.

Despite the notoriously long, harsh winters, the Western New York town topped Zillow’s list of the 50 “hottest” markets of 2024 due to its affordability— making owning a home a real possibility for young people.

“Housing markets are healthiest where affordable home prices and strong employment are giving young hopefuls a real shot at buying and starting to build equity,” Anushna Prakash, data scientist for Zillow Economic Research, said in the real estate company’s report.

The typical home in the Queen City is currently valued at $248,445, according to Zillow’s estimates — significantly lower than the national average of $347,415 

If a buyer were to put 5% down on a typical home in Buffalo, the mortgage would be $1,792, according to the report. Typical rent costs $1,257 per month.

Zillow measured expected demand for housing in Buffalo by comparing the number of new jobs being created in the city to the number of new homes being built.

Among the 50 cities analyzed by the company, Buffalo had the highest number of jobs per new housing units — which is expected to drive up home prices unless additional units are built to match the demand.

Charlotte was named Zillow’s hottest housing market in 2023 – when housing costs hit a record high for buyers and renters across the country.

Behind Buffalo in this year’s rankings are midwest cities of Cincinnati and Columbus, Ohio.

“Inventory is moving extremely quickly in Cincinnati, and Columbus is home to the fastest expected rise in owner-occupied households, an indication of family formation and population growth,” Zillow found.

Some 276,000 people live in Buffalo as of the 2020 census, but it was once home to more than double that in1950 when the population peaked at 580,000 before industrial jobs fled and the city fell into decline.

In October, New York Sen. Chuck Schumer announced that the Buffalo-Rochester-Syracuse region was declared a federal “tech hub” under the CHIPS & Science Act and will receive billions in federal funding to make the region a center for manufacturing.

The city also has several universities — including the University of Buffalo and Buffalo State University, both SUNY institutions — and of course, the NFL’s Buffalo Bills.

Due to its position on Lake Erie, the city is infamous for its snow. Buffalo received 133.6 inches of snow in 2022-2023, according to the National Weather Service.