America’s Real Estate Hot (and Cold) Spots Revealed: These four cities are facing the biggest housing shortage in the US – is YOUR hometown one of them?

Americans looking for a place to call home may want to steer clear of Texas, as three cities in the Lone Star state are in the middle of a housing crisis, research shows.

New analysis by Bank of America (BofA) has identified San Antonio, Dallas and Houston as among the four cities experiencing the largest real estate shortages in the US.

Rounding out the list was Orlando, Florida, which is also experiencing strong population growth and low housing stock.

At the other end of the spectrum, St. Louis, Detroit and Miami were found to have the highest housing stock relative to their population.

BofA analysts followed internal data from the second financial quarter of the year to assess where real estate markets were hottest and coldest.

Across the US, realtors are sounding the alarm about housing shortages that have kept real estate prices high for the past two years.

Earlier this year, a real estate website broker estimated that the US needs to build an additional 6.5 million homes to satisfy its growing population.

According to BofA, the areas with the greatest housing problems were due to their booming labor markets that are increasing their population.

In Dallas, for example, the number of people on the nonfarm payroll is up 14 percent since January 2019. In Orlando, this figure is up 10 percent.

Nationwide, nonfarm payrolls increased by only 4 percent.

Widespread shortages in the “hot” areas have subsequently caused home prices to skyrocket, with Orlando seeing its home prices rise 58 percent in June 2023 compared to 2019.

Likewise, homes in Dallas had increased in value by 29 percent. But researchers said the San Antonio real estate market had begun to “weaken” despite the shortages.

Meanwhile, researchers attributed the refrigeration markets in St. Louis and Detroit to their declining populations. Both cities saw their communities shrink dramatically in the aftermath of the 2008 Great Recession.

Miami, pictured, managed to maintain a stable population between 2020 and 2022, but has recently seen a major outflow of residents

Researchers said the San Antonio real estate market, pictured, had begun to ‘weaken’ despite the shortages

Since then, their populations have only experienced what researchers called “lukewarm growth” over the past decade.

Miami, on the other hand, managed to maintain a stable population between 2020 and 2022 – but had recently seen a major outflow of residents.

The report said this trend was “in line with some press reports suggesting that many people who moved to Miami early in the pandemic have since moved because of the city’s rising cost of living.”

The numbers come as rising mortgage rates have left the US real estate market cold water, deterring many potential buyers from moving.

Data from government-backed lender Freddie Mac shows that the average interest rate on a 30-year mortgage is currently 6.9 percent — more than double what it was two years ago.

Dailymail.com recently revealed that increased rates caused homeowners to become “accidental landlords.”

According to data from real estate portal Redfin, the number of new homes fell 25 percent in May – the third lowest level on record.

Separate findings from government-backed lender Freddie Mac found that 82 percent of potential homebuyers felt they were “trapped” in their homes because they secured mortgages when interest rates were low.