Top Real Estate Markets for 2023

[Chris Levarek]

Greetings BiggerPockets members!

Every year I make a post on the "Top Markets for the New Year". Sources include IRR, Realtor, Urban Land Institute, Uhaul, etc.

I again wanted to share some of the data we use, when investing in apartments and vacation rentals with partners.

Which ones are you currently in or are on your list for 2023?

According to Realtor, TOP 10 Housing Markets for 2023 :

1. Hartford, Connecticut
2. El Paso, Texas
3. Louisville/Jefferson County, Kentucky
4. Worcester, Connecticut
5. Buffalo, New York
6. Augusta/Richmond County, South Carolina
7. Grand Rapids, Michigan
8. Columbia, South Carolina
9. Chattanooga, Tennessee
10. Toledo, Ohio

According to IRR, TOP 10 Multifamily by Tran. Vol in 2022 :

1. Honolulu, HI
2. Detroit, MI
3. Richmond, VA
4. Tulsa, OK
5. Orlando. FL
6. Fort Myers Metro, FL
7. Oklahoma city, OK
8. Nashville, TN
9. Louisville, KY
10. Tucson, AZ

According to IRR, Multifamily Market Cycle for 2023:

According to UHUAL, 2022 Growth Cities :

1.Ocala, FL (24)
2.Sacramento-Roseville, CA (8)
3.Madison, WI (5)
4.Palm Bay-Melbourne, FL (3)
5.Auburn-Opelika, AL (23)
6.North Port, FL (4)
7.Myrtle Beach, SC (17)
8.Surprise, AZ (18)
9.Huntsville, AL
10.Charleston, SC

According to UHUAL, 2022 Growth States :

1.TEXAS (1)
2.FLORIDA (2)
3.SOUTH CAROLINA (4)
4.NORTH CAROLINA (19)
5.VIRGINIA (31)
6.TENNESSEE (3)
7.ARIZONA (5)
8.GEORGIA (23)
9.OHIO (24)
10.IDAHO (9)

According to Urban Land Institute "Markets to Watch for 2023":

1. Nashville, TN
2. Dallas/Fort Worth, TX
3. Atlanta, GA
4. Austin, TX
5. Tampa/St. Petersburg, FL
6. Raleigh/Durham, NC
7. Miami, FL
8. Boston, MA
9. Phoenix, AZ
10. Charlotte, NC

...and there you have it.

I always advise to take the data and make your own thesis on which markets are better. Look for commonalities among data sources. Then select your top 5.

Dig deeper with local contacts in those markets. Niche down on specific neighborhoods. By doing this, you ensure you are not simply taking all this data at face value.

Feel free to add to this post with new data sources!  (see 2022 or 2021 BP posts I've done in similar manner).

Happy Investing! 

[Brian J Allen]

Love Worcester, MA lots of colleges and lots of hospitals, and only 1 hr to Boston on the express train and 50 min to Providence and 50 to Springfield via car, even with some traffic.  Rents are increasing and the city has lots to offer.  Most of the multfamily housing was built 1890-1930 so there is a lot of upside with some renovations