Jan 18, 2024 - Real Estate

San Antonio ranks low on Zillow's 2024 hottest markets list

Illustration of a real estate sale sign shaped like a downward point arrow

Illustration: Annelise Capossela/Axios

San Antonio is ranked No. 49 (of 50) on Zillow's predictions for the hottest U.S. housing markets in 2024.

Why it matters: Being not-hot isn't necessarily a bad thing, in this instance.

The big picture: New Orleans, San Antonio, Denver, Houston and Minneapolis sit at the bottom of this year's ranking of Zillow's hottest housing markets.

Zoom in: San Antonio earned a low ranking, in part, because Zillow predicts local home prices will fall 2% in 2024.

The intrigue: San Antonio fell 36 spots from Zillow's 2023 ranking.

What they're saying: "Ample construction in and around San Antonio has helped keep price growth subdued despite serious demand," Zillow senior economist Nicole Bachaud tells Axios.

  • Home values have risen 34% and typical mortgage payments have more than doubled in San Antonio since 2019, Bachaud says.
  • But San Antonio is one of three major U.S. metros where inventory has improved since the pandemic, and that supply should keep prices cool in 2024, even if demand grows.

The other side: Buffalo, New York; Cincinnati; Columbus, Ohio; Indianapolis and Providence, Rhode Island, are anticipated to be the hottest markets, according to Zillow.

  • These metros are projected to have strong demand and steady home values, per the report.

Bottom line: We're OK being cool instead of hot.

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