Colorado, North Carolina, and Texas Dominate U.S. News’ Hottest Housing Market List

Offering a mix of improving demand, supply, and alternative financing options, Denver and Raleigh, North Carolina, rank No. 1 and No. 2 as the hottest housing markets.

Pulling from the U.S. News Housing Market Index, Denver once again ranked as the hottest metropolitan statistical area overall due to low unemployment, few mortgage delinquencies, low rental vacancy rates for investors, and a positive ratio of building permits to job growth.

With Housing Market Index totals ranging up to 74.8 versus the lowest scores under 55.0 for MSAs in Hawaii and California, the following MSAs are the hottest housing markets ranked from first to fifth:

Denver – 74.8
Raleigh, North Carolina – 73.7
Virginia Beach, Virginia – 73.2
Durham, North Carolina – 72.8
Charlotte, North Carolina – 72.0

During the COVID-19 pandemic, these markets benefited from unusually low mortgage rates and the desire for more living space. They still remain popular even as more workers have returned to offices and higher mortgage rates have made buying less affordable. In addition, most of these MSAs also offer the types of amenities found in larger cities without the downsides of a huge metro area such as New York, Los Angeles or Chicago.