America’s hottest real estate markets right now are hiding far, far away from the glitz of big cities, the bustle of tech hubs, and the warm, sandy beaches where many may aspire to relax or retire.
And while these hot spots might not have big-name recognition, they are known for what’s top of mind for homebuyers now: affordability.
Manchester, NH, and Rochester, NY, are tied for the honor of being named the nation’s hottest housing market in September, according to a recent Realtor.com® report. Manchester is about an hour northwest of Boston while Rochester is about 5.5 hours north of New York City on Lake Ontario.
“They’re equally hot, but for different reasons,” says Hannah Jones, an economic data analyst at Realtor.com. “Manchester properties see higher demand, but homes in Rochester spend five days less on the market.”
With high home prices and fast-rising mortgage interest rates, homebuyers are increasingly seeking out smaller cities in the Northeast, Midwest, and South where they can find a home for sale within their budget, according to the report.
Homes in nearly three-quarters of the 20 hottest markets cost less than the national median price tag of $427,000.
Not a single Western real estate market made the list, likely due to the higher home prices in that swath of the country.
“As mortgage rates have continued to climb and home prices are still high, buyers are looking for homes that are still within their budget,” says Jones. The hottest markets “are receiving much more attention as buyers are desperate to find reasonably priced places to live.”
The rankings are based on the number of views that listings in these metropolitan areas receive on Realtor.com, and how quickly properties are selling. (Metros include the main city and the surrounding smaller towns and urban areas.)
Why homebuyers are so interested in Manchester and Rochester
The Manchester metro has been a regular in the No. 1 spot over the past year and a half. Its popularity surged during the COVID-19 pandemic, when the area picked up a lot of remote workers as well as those who didn’t need to commute as often to their offices in Boston. New Hampshire, where Manchester is located, is also known for its low taxes and more affordable real estate.
The median home list price in Manchester was $487,400 in September, up 17.1% year over year. While that’s not cheap, it’s significantly less than the $742,000 median price tag in Boston. That would help explain why Manchester homes attracted 2.8 times as many views on Realtor.com as the typical listing across the country.
Meanwhile, the Rochester metro is tied for No. 1 due largely to its affordable real estate. This college town, where Kodak is headquartered, boasts a median list price of just $223,000. That’s significantly less than the national median price tag of $427,000.
But the competition is brisk in the small city in upstate New York, with homes selling in just 25 days—about half the median time on the market as in the rest of the country. Listings also received about 2.5 times as many views as the typical home.
Tiffany Hilbert of Keller Williams Realty Greater Rochester is seeing locals competing with out-of-towners looking for more affordable real estate now that they can work remotely, buyers looking for second homes on Lake Ontario or the Finger Lakes, and investors looking for flips and properties they can turn into rentals.
She heard through the grapevine that a listing agent had recently received 20 offers—and was expecting more—on a 1,600-square-foot, three-bedroom ranch listed at $199,000. Hilbert expects it will sell for over $300,000.
Meanwhile, one of the agents on her team wrote an offer of $115,000 over the mid-$200,000 asking price for a property. Even so, that agent’s client didn’t get the house.
“People are desperate for properties,” says Hilbert. “The price of our homes is still not outrageous.”
Get more like this on Realtor.com
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