Much of the U.S. housing market remains ensnared by the dual burdens of painful mortgage rates and scarce inventory. Yet four cities in the South and West are defying the odds.
Atlanta, Charlotte, Raleigh and Dallas are witnessing vaulting home prices fueled by strong demand, making them some of the most desirable places to live in the country and thereby overstretching inventory.
Hannah Jones, research analyst at Realtor.com®, says those cities have become magnets for homebuyers seeking affordability, job opportunities and a high quality of life.
In 2022 inventory levels in those markets plunged 48% to 76% compared with pre-pandemic levels, creating a fiercely competitive environment for buyers. She says an influx of demand triggered dwindling home supply and climbing prices as buyers faced stiff competition.
Let’s look at what’s driving the boom in the four cities and why so many people are eager to call them home.
1. Atlanta, GA: The Hollywood of the South
Atlanta, affectionately known as “The Big Peach,” has seen its median home sale price rise to $415,000 in November 2024, up 7% year over year and up 35.7% compared with 2019.
What’s drawing people to Atlanta? it’s a bustling economic hub with job opportunities in tech, health care and even film production. The city has earned the nickname “the Hollywood of the South” thanks to its booming entertainment industry. But it’s not just about work: Atlanta offers a high quality of life with mild winters, lush parks, a vibrant arts scene and a diverse culinary landscape. Whether you’re an outdoor enthusiast, a culture buff or a foodie, Atlanta has something for everyone.
2. Charlotte, NC: The Queen City’s Reign Continues
Charlotte, dubbed the “Queen City,” has seen its median home price climb to $423,500 as of November 2024—an 8.6% increase from the previous year and an explosive 60% rise since 2019. Home prices in Charlotte have been on an upward trajectory since 2015, but the pandemic supercharged the market.
The North Carolina gem is more than just a financial hub (it’s home to Bank of America’s headquarters). Charlotte boasts a rich cultural scene including the Levine Museum of the New South and the family-friendly Discovery Place Science. Sports fans can cheer for the NFL’s Carolina Panthers, the NBA’s Charlotte Hornets, or the MLS’s Charlotte FC. And for outdoor lovers, the U.S. National Whitewater Center offers 1,300 acres of adventure along the Catawba River.
3. Raleigh, NC: The City of Oaks Blossoms
Raleigh, located about 165 miles east of Charlotte, has become one of the fastest-growing metros in the U.S. The median home price here hit $465,000 in November 2024—an 8.4% increase from the previous year and a jaw-dropping 67.7% jump since 2019.
Known as the “City of Oaks” for its tree-lined streets, Raleigh is a hub for education and innovation, thanks in large part to North Carolina State University. The city also has a vibrant live music scene, numerous museums and a burgeoning craft brewery culture. For families and young professionals alike, Raleigh combines Southern charm with modern amenities, making it an ideal place to put down roots.
4. Dallas, TX: Everything’s Bigger in Texas
Dallas, the ninth most populous city in the U.S., is a major economic powerhouse. The median home price here touched $357,000 in November 2024—a 7.2% increase from the previous year and a 28.5% rise since 2019. While Dallas posted steady price growth before the pandemic, the market truly took off in recent years.
With a population of 1.3 million, Dallas attracts young professionals with jobs in finance, tech, health care and manufacturing. The city is also a cultural hotspot, home to world-class museums like the Sixth Floor Museum at Dealey Plaza and the Perot Museum of Nature and Science. And don’t forget the food: Dallas’ culinary scene goes far beyond Tex-Mex and barbecue with offerings that include Michelin-starred dining at Tatsu Dallas.
What’s Behind the Boom?
So what do those four cities have in common? According to Hannah Jones, it’s a combination of affordability (relative to other major metros), strong job markets and a high quality of life.
Home shoppers looking for more bang for their buck, without sacrificing access to amenities and job opportunities, homed in on these markets, she says.
The pandemic also played a part as remote work allowed people to relocate to cities that had more space and better value. The influx of buyers pushed down inventory sharply, which in turn kicked prices even higher.
What’s Next?
The big question on everyone’s mind: can the boom last? Atlanta, Charlotte, Raleigh, and Dallas show no signs of slowing down, at least for now. And the cities aren’t just popular for no reason. Atlanta’s buzzing culture, Charlotte’s sports and outdoor adventures, Raleigh’s top-notch schools and Dallas’ booming job market make them stand out in a crowded field.
But the rocketing home prices are starting to pinch. With demand still racing ahead of supply, experts say the competition for homes could get even uglier. What does that mean for you?
If you’re dreaming of a fresh start in one of those, the clock might be ticking. Prices are climbing fast, and waiting could mean paying even more down the line.
