![Top 7 US Housing Markets for Buyers This Holiday Season [2024]](https://homeabroadinc.com/wp-content/uploads/2024/11/Top-7-US-Housing-Markets-for-Buyers-This-Holiday-Season-2024-500x325.jpg)
Key Takeaways:
➡️ Zillow’s market heat index shows the nation is currently in a neutral market, indicating balanced conditions between buyers and sellers.
➡️ Cities like New Orleans, Miami, McAllen, TX, Cape Coral, and Urban Honolulu, HI, are shining brightly as emerging buyer’s markets, with inventory slowly recovering.
➡️ Southern US housing markets are basking in the glow of strong buyer opportunities as inventory rebounds, positioning the region as a prime hotspot for real estate investment.
As the holiday season draws near, the housing market often slows down, creating a merry opportunity for savvy buyers to lock in unbeatable deals. 🎁
Purchasing a property during the holidays typically means less competition, which can lead to festively lower prices and more room for negotiation.
Plus, buying before the year wraps up could offer valuable tax advantages and easier access to experts, as the festive season brings a slower, jollier pace.
If you’re ready to deck the halls with your next investment, I, Michele Lawrie, Chief Real Estate Officer at HomeAbroad, have handpicked the top 7 housing markets this holiday season that give buyers the greatest leverage and exceptional rental yields.
Let’s unwrap these opportunities together!
Table of Contents
Holiday Edition: Top 7 Buyer’s Housing Markets Investment
These 7 markets have been carefully selected based on Zillow’s Heat Index Score, standing out for lower buyer interest, more price reductions, and longer time on the market—giving buyers the gift of greater leverage as of November 11, 2024.
What’s even better? Each of these markets offers exceptional rental yields, making them perfect for generating festive cash flow after mortgage payments.
It’s the season to secure both savings and future income!
1. Cape Coral, FL
- Housing Price: $373,166
- Average Daily Rate (Short-term Rental): $276.5
- Occupancy Rate: 52%
- Rental Yield: 14.06%
- Heat Index Score: 32.4
Known for its extensive canal system and waterfront properties, Cape Coral is a hotspot for vacation rentals, attracting water enthusiasts and tourists year-round. Its incredible rental yield of 14.06% makes it a fantastic market for short-term rental investors looking to maximize returns.
This season of joy, take advantage of the festive spirit with Cape Coral’s Holiday Boat Parade, where boats adorned with lights and decorations create a vibrant and joyful atmosphere—making it an even more attractive spot for vacationers and investors alike.
2. McAllen, TX
- Housing Price: $221,579
- Average Daily Rate (Short-term Rental): $126
- Occupancy Rate: 45%
- Rental Yield: 9.34%
- Heat Index Score: 33.9
A hub for international trade and commerce near the US-Mexico border, McAllen combines affordability with unique investment potential. It’s warm climate and low cost of living make it particularly attractive to retirees and snowbirds.
As a growing destination for seasonal visitors, McAllen provides steady demand for short-term rentals, offering investors an excellent opportunity to capitalize on its vibrant cross-border appeal.
This time around, McAllen shines with its Holiday Festival of Lights, one of the largest holiday light displays in Texas, adding to the city’s festive charm and attracting even more visitors.
3. New Orleans, LA
- Housing Price: $236,526
- Average Daily Rate (Short-term Rental): $282.9
- Occupancy Rate: 51%
- Rental Yield: 22.26%
- Heat Index Score: 34.9
Famous for its vibrant culture, historic charm, and festivals like Mardi Gras, New Orleans draws consistent tourism, making it a prime market for short-term rentals. Its rental yield of 8.94%, coupled with its high average daily rental rate, makes it a lucrative market for short-term rental investors.
During the festive season, New Orleans truly shines with unique traditions.
From the stunning Celebration in the Oaks—a dazzling Christmas light display in City Park—to the festive Réveillon Dinners at local restaurants, the city’s rich cultural vibe adds an extra layer of holiday magic, making it an enticing destination for both visitors and investors.
4. Miami, FL
- Housing Price: $583,030
- Average Daily Rate (Short-term Rental): $280.1
- Occupancy Rate: 51%
- Rental Yield: 8.94%
- Heat Index Score: 36.0
A global destination with year-round warm weather, Miami boasts a thriving economy, luxury lifestyle appeal, and steady demand for both vacation and long-term rentals.
Miami shines with holiday festivities, featuring the vibrant Holiday Boat Parade along Biscayne Bay and spectacular light displays at the Miami Seaquarium.
5. Jackson, MS
- Housing Price: $67,313
- Average Daily Rate (Short-term Rental): $143.5
- Occupancy Rate: 44%
- Rental Yield: 34.24%
- Heat Index Score: 36.2
With some of the lowest property prices in the country, Jackson offers excellent affordability and strong cash flow potential for investors.
With a jaw-dropping rental yield of 34.24%, Jackson makes a top choice for investors seeking high returns from short-term rentals in an affordable market.
As the holidays approach, Jackson comes alive with festive events that bring the community together. The Jackson Zoo’s Zoo Lights event illuminates the area with enchanting displays, creating a magical experience for families.
Additionally, the State Capitol Christmas Tree Lighting adds to the cheer, making Jackson an ideal spot for family-friendly rental properties during this joyful season.
6. Urban Honolulu, HI
- Housing Price: $786,725
- Average Daily Rate (Short-term Rental): $318.6
- Occupancy Rate: 66%
- Rental Yield: 9.76%
- Heat Index Score: 36.3
Urban Honolulu is a premier destination for luxury short-term rentals, thanks to its world-renowned beaches and steady stream of tourists.
With a solid rental yield of 9.76% and a high occupancy rate of 66%, it offers reliable income for investors.
Honolulu’s Festival of Lights is a highlight of the festive season, captivating visitors with thousands of twinkling lights along the beach, offering a festive, tropical take on classic Christmas décor.
7. Deltona, FL
- Housing Price: $306,083
- Average Daily Rate (Short-term Rental): $149.2
- Occupancy Rate: 46%
- Rental Yield: 8.18%
- Heat Index Score: 37.1
Deltona, ideally located between Orlando and Daytona Beach, offers a prime location that attracts both commuters and vacationers.
Its affordability, compared to nearby cities, makes it a cost-effective choice for investors. Additionally, its proximity to major attractions, such as theme parks and beaches, boosts its appeal for short-term rentals.
While Deltona may not host large holiday events itself, it benefits from its close proximity to Orlando, renowned for its festive celebrations, including Disney World’s Christmas Party and Universal’s Holiday Parade.
Methodology
To identify the best real estate markets for buyers with high income potential, we combined insights from Zillow’s Heat Index Score and AirDNA data.
1. Zillow Heat Index Score (Nov 2024):
We used this score to assess market activity by analyzing factors such as buyer interest, price reductions, and the speed at which homes go under contract.
Lower Heat Index scores indicate less competitive markets, providing buyers with greater leverage for negotiation and better opportunities to secure deals. (Source)
2. AirDNA Data:
To ensure high income potential, we cross-referenced AirDNA’s average daily rate and occupancy rate data for short-term rentals. These metrics helped us calculate the rental yield, providing a clear picture of a property’s potential for generating positive cash flow.
By focusing on markets with lower buyer activity (low Heat Index scores) and fantastic rental yields (thanks to AirDNA), we’ve found locations that are gift-wrapped with great opportunities for both leverage and income potential—perfect for investors this winter holidays.
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This holiday season offers a unique opportunity for savvy real estate investors to take advantage of buyer-friendly markets with strong rental income potential!
Whether you’re searching for short-term rental hotspots or long-term investment opportunities, these markets provide the perfect combination of leverage and profitability.
If you’re looking for assistance in narrowing down the best location, finding the right property according to your goals and budget, HomeAbroad is here to help. As your one-stop shop, we offer:
- Specialized real estate agents with local expertise.
- An AI-powered property search platform designed to match your investment criteria.
- End-to-end concierge service, LLC setup, and property management support to ensure a seamless transaction.
- In-depth investment analysis to ensure your property delivers profitability, backed by expert, data-driven insights.
Ready to unwrap your next great real estate investment?
Let HomeAbroad give you the gift of real estate. After all, nothing says “Happy Holidays” like securing a property that keeps giving all year round.
Reach out to HomeAbroad today!
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At HomeAbroad, we ensure the reliability of our content by relying on primary sources such as government data, industry reports, firsthand accounts from our network of experts, and interviews with specialists. We also incorporate original research from respected publishers when relevant. Discover more about our commitment to delivering precise and impartial information in our editorial policy.
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