The Eastern US Real Estate Market Is Changing – Here’s What You Need to Know
The US real estate market is one of the most interesting markets in the world. If you were to divide the nation into three parts (Eastern, Central, and Western), you would find three distinct markets. While there are some universal truths (like the lack of inventory promoting higher prices), there are some distinct facts about each region’s real estate industry.
One of the most interesting aspects of the Eastern US real estate market is just how fast it's changing. Shifting work habits, lifestyle changes, and constantly evolving economic conditions have led to the real estate market in the Eastern US undergoing major changes over the last few years.
From bustling cities like New York City in the Northeast to beautiful beaches in Miami, real estate in the Eastern US offers some of the most appealing properties in the nation. Whether you’re planning to buy a home in the East or you’re considering putting your house on the market, you need to know what’s happening. Learn more about the changing Eastern US real estate market today.
Is There an Urban Exodus or an Urban Rebound?
Let’s begin by looking at some of the cities that make up the Eastern United States. While New York City might be the most popular, there are plenty of other metropolitan areas in the US found in the East. At the height of the COVID-19 pandemic, many people started leaving those urban areas, as working from home became the new normal across the country.
Cities like New York City, Philadelphia, Boston, and Washington, D.C. saw major declines in their populations as people looked for more affordable places to call home. While many of the people who migrated from those areas were renters, those who were homeowners found it harder than expected to sell their homes. People were avoiding moving to those metropolitan areas for the same reasons that home sellers were putting their homes on the market. This lack of demand led to lower prices, which did incentivize some people.
Now that we’re nearly six years removed from the first reported case of COVID in the US, much is still being made about what has been labeled the “urban exodus.” In fact, it could be argued that too much is being made of it.
Today, many buyers and renters are finding themselves drawn to the allure of big-city living. It’s hard to deny that places like New York City have plenty to offer, even for people who aren’t forced to live there for work. Some studies indicate that in 2024, New York City, Boston, and D.C. saw an uptick in population for the first time in five years. With this in mind, it’s safe to assume that competition in those markets is probably going to pick back up going forward. You don’t have to be a real estate expert to know that more buyers lead to higher prices, which is great news if you’re selling your home. But if you’re a homebuyer in the Eastern US, things might get a bit tricky for you in the next couple of years.
Smaller Cities and Suburban Stars
Big cities are certainly regaining their momentum, and data provided by the National Association of Realtors (NAR) proves that. However, it could be argued that it’s the Eastern US’s smaller cities and suburban areas that are really driving the market.
Cities like Raleigh and Charlotte in North Carolina, Richmond, Virginia, Greenville, South Carolina, Portland, Maine, and Albany, New York, all started seeing an uptick in their populations before the larger urban epicenters did. Most of these cities are close enough to major cities or the Atlantic Coast to make them appealing. Those that aren’t particularly close to either have enough appeal to make them popular.
Remote work put many of these places on the map, at least as far as their real estate markets go. When people realized that they could blend their professional lives with more affordable living in a place that had a slower pace, they flocked to places that were still close enough to metropolises to give them access while still allowing them to enjoy the perks of a small town.
Many of those suburban areas and smaller cities were credited with keeping the US real estate market alive when the market started to sputter, and they’re just as popular today as they were then. With interest rates still running as high as they are, the affordability in these markets, especially compared to their urban counterparts, continues to make them popular choices.
Things Are Cooling in Florida, But It’s Still Hot
No conversation about the real estate market in the Eastern United States is complete without a discussion about Florida. For decades, the real estate market in the Sunshine State largely revolved around retirees who wanted to leave behind cold weather to relax in Florida’s consistent warm weather.
While the market evolved considerably over the years, you need to once again look to the pandemic era to see a major change. Between 2020 and 2022, Florida saw a huge boom in its real estate market. People not only moved there for the weather, but when they realized that they could work from home in a state with minimal income taxes, they flocked to the Sunshine State. Places like Jacksonville, Orlando, Tampa, and Miami, all of which had solid real estate markets before, saw even more action.
According to NAR, 2024 and the first quarter of 2025 saw the market start to cool. However, a cool real estate market in Florida is still a hot market. Inventory has actually increased in some areas, making those markets some of the only places in the US with a surge in housing inventory. South Florida is still appealing to real estate investors from around the world, while the central and northern portions of the state remain popular choices for retirees and those looking for a fresh start.
The Florida real estate market may no longer be the frenzy that it once was, but it’s still one of the markets that sets the standard for the rest of the nation.
Coastal Concerns Are Impacting Buyer Decisions
One of the factors that is reportedly driving some buyer decisions has nothing to do with mortgage rates and housing inventories. According to multiple studies that focus on the geographic location of homebuyers, many buyers are steering clear of coastal areas due to concerns about climate change.
With more frequent hurricanes, as well as the increased strength of many of the storms that make landfall, some of the Eastern US real estate markets that were once red hot have cooled significantly. Cities like Charleston, South Carolina, the Outer Banks, and Savannah, Georgia, have all been considered among the most popular destinations for buyers. However, the severity and frequency of the storms that have ravaged the Carolinas, Georgia, and Louisiana in recent years have given some buyers pause.
It’s important to note that these markets are certainly not on the verge of collapse. However, buyers are reportedly looking for features when they shop for homes in those areas that offer some sort of security. Homes with higher elevations and other recent updates that make them more capable of withstanding strong storms are often able to fetch much higher offers than older homes that have managed to withstand the storms.
Inventory is Tight, But That Could Be Changing
Whether you’re a homebuyer or seller, you’ve undoubtedly heard about the inventory shortage. For the past several years, the number of new homes being built has not been sufficient to keep up with the demand. However, that seems to be changing in some states, many of which are in the Eastern United States.
New constructions are reportedly up in states and areas where there is plenty of land and minimal regulations. Those areas include North Carolina, Pennsylvania, Georgia, Western Massachusetts, and Upper New York.
The real estate market has always operated on a ripple effect. When things change in one area, they also change in others, even if it takes some time. The increase in inventory in those areas should eventually lead to an increase in other parts of the country, which will lead to more affordable homes.
East Bound and Down
One of the most appealing parts of the Eastern United States is the variety of landscapes it offers. Whether you’re looking for an urban area, a mountain landscape, or a beautiful beach, buying a home in the Eastern US is a great way to enjoy some of the most beautiful areas that our great nation has to offer.