A look through Zillow’s housing data shows the cities with the biggest population growth generally have two factors in common: affordability — at least when compared to bigger cities nearby, if not the country as a whole — and relatively more inventory.
Affordability and availability are the biggest factors driving the market today. With mortgage rates near 7%, the cost of a home purchase is keeping many would-be buyers on the sidelines.
Cities with homes that are relatively more affordable continue to attract the most new residents — a trend that has been in full force since the start of the pandemic. Markets with more supply, whether from new construction or existing home sellers, generally offer a friendlier experience for buyers with more options, milder competition and more time to make an offer.
The four cities with the biggest population growth are in states that were among the top five in the number of housing units added last year. Texas and Florida added more housing units than any other state, while North Carolina and Georgia were fourth and fifth, respectively.
Here’s what newcomers can expect in the housing markets of the five fastest-growing cities: