Former boomtowns in the South where homes are now going for dirt cheap... but for good reason
Homebuyers may be in luck this spring — at least in five pandemic boomtowns in the Southeast.
Home sales remain sluggish nationwide as buyers are put off by record high prices and elevated mortgage costs.
But in areas with a surplus of homes, sellers are being forced to cut prices, giving buyers more bargaining power.
Top metro areas for buyers include three metros in Florida, Miami, Jacksonville and Tampa, plus Memphis, TN, and New Orleans, LA — all of which saw a post-pandemic housing surge.
The surplus of homes is driven by two factors: builders overreacting to increased demand and a post-pandemic reality check for those who flocked to these areas.
Some newcomers later discovered downsides like flooding risks, higher crime, or how quiet and isolated some neighborhoods really are.
‘Some of the strongest buyers markets are in the Southeast, where builders have been able to keep up with demand,' said Zillow's chief economist Orphe Divounguy.
In Miami, homes take nearly three times longer to sell than the national average, giving buyers time to carefully consider their options.
In Miami, homes take nearly three times longer to sell than they do nationally
Some of the strongest buyers markets are in the Southeast, like Miami, FL, where builders have been able to keep up with demand
Zillow Senior Economist Orphe Divounguy
Unsold listings also mean sellers are more likely to drop prices — with a quarter of Miami homes getting a reduction in February.
One downside: buyers should be mindful of risks from flooding and natural disasters.
In New Orleans, there are significantly more homes on the market today than there were prior to the pandemic and 11 percent more homes for sale than last year. Potential buyers who want a vibrant culture and a city with a rich history will like the Big Easy, and will likely be able to negotiate.
Homes in the city stay on the market for almost two months before going under contract.
A downside of New Orleans is that it's below sea level and surrounded by levees, making it a risk for flooding. The city also sits in a hurricane zone and has been hit with Hurricane Katrina and Hurricane Ida.
Another area where it’s a buyer’s market this spring is Jacksonville, FL. There are 26 percent more homes on the market this year compared to last year. Buyers may also be able to snag a deal, nearly 30 percent of sellers dropped their asking price.
One con of living in Jacksonville is the city's flooding after severe storms. The northeast Florida city was also given the nickname 'murder capital' after murder rates soared in recent years.
Some 134 murders were recorded in the city in 2022, a figure which dropped to 122 in 2023, before declining by a whopping 50 percent in just one year to 59 in 2024.
Buyers have a shot in Miami, due to a surplus of homes on the market at affordable prices
In New Orleans, there are significantly more homes on the market today than there were prior to the pandemic and 11 percent more homes for sale than last year
Potential buyers who want a vibrant culture and a city with a rich history will like the Big Easy, and will likely be able to negotiate
New Orleans is a highly walkable city, but is prone to hurricanes and flooding
Jacksonville, FL, has a surplus of homes at affordable prices for potential buyers
In Memphis, TN., it costs less to own than to rent monthly. The typical monthly mortgage payment in Memphis is about $1,200, while typical rents are more than $1,400.
Plus, due to how long homes have been listed for, buyers have nearly a month to decide on a home before it goes under contract.
Buyers should know that Memphis has long struggled with poverty, vacant homes, and abandoned buildings.
It is also a high crime city.
Once known for its blues, soul and rock 'n' roll music, Memphis has turned into a haven for crime and drug abuse.
A 2024 study by WalletHub has named the Southern city the most dangerous city to live in America among the 182 cities surveyed.
The United States Department of Justice also declared that this once-flourishing metro has the highest number of homicides - 129 in the first half of 2024.
It also gets hit with flash floods and is prone to rain related disasters.
Mandalay road near Clearwater Beach in Tampa FL has affordable homes for sale
Nearly one-third of all for-sale listings in Tampa took a price cut this year
In Memphis, TN., it costs less to own than to rent and the average mortgage payment is $1,200
Highways converge is Memphis, which sits on the Mississippi River
Residents in Memphis have access tp a vibrant arts and music scene downtown
Memphis is a walkable city, and neighborhoods with affordable homes sit close to downtown
Overall, Americans battling the crippling cost of living crisis are fleeing to the South because there are favorable tax rates.
In 2024, Florida was the most popular state people relocated to as it boasts a better quality of life, lower cost of living and has no income taxes.
The Sunshine State does not tax earned income or investment income which attracts those looking for financial advantages.
Discounts are also sitting on the market in Tampa, FL. Nearly one-third of all for-sale listings in Tampa took a price cut this year. Those buyers also have more for-sale homes to choose from, with inventory is about 20 percent higher than it was a year ago.
Buyers will need to understand that Tampa is oppressively humid and is a high hurricane risk city.
