This holiday season has really seen a sea change in the US real estate landscape. Instead of the usual hegemony of major metropolitan areas such as Los Angeles and New York, recent data indicates small cities are enjoying unprecedented real estate booms. Some of the reasons contributing to this trend are affordability, increased inventory, and a desire for improved quality of life.
Hot emerging Real Estate markets
Recent data shows some of the hottest real estate markets in the country – some quite unexpected cities, at that. The common thread between all is a median home price that’s still lower than the national average, along with very highly increased available housing inventory.
Following are the six emerging hotspots starting from number six:
6. Springfield, Massachusetts
Median Home Price: $393,000.
Just over the Northern Connecticut border, Springfield offers homes well below the national average, despite the state’s higher taxes and excellent school systems. The city is the birthplace of Dr. Seuss and is close to Brimfield, home to one of the largest antique markets in the country.
5. Kalamazoo-Portage, Michigan
Median Home Price: $360,000.
In Southern Michigan, Kalamazoo’s average selling price is at $360,000. Part of the city’s major museum network includes Air Zoo Aerospace and Science Museum, Kalamazoo Valley Museum, and the Kalamazoo Institute of Arts.
4. Manchester-Nashua, New Hampshire
Median Home Price: $563,000.
This is not only the fourth hottest market in real estate but also where homes sell the fastest in the country. This region of the country has a fabulous community, nature access galore, and that Northeastern flair.
3. Milwaukee-Waukesha-West Allis, Wisconsin
Median Home Price: $390,000.
A beloved Midwestern city, the greater Milwaukee area strikes a balance of urban living and access to natural spaces. Of course, the city has a deep love affair with breweries, sports, and rabid fans.
2. Akron, Ohio
Median Home Price: $230,000.
Akron holds the silver medal in our ranking for most in-demand real estate. Locals are treated to an emerging art scene along with action-packed minor league sports.
1. Canton-Massillon, Ohio
Median Home Price: $259,000.
The greater Canton area is affordable and in high demand, making it this quarter’s top market. Rich in attractions from the Pro Football Hall of Fame, to a vibrant local community, it’s an amazing area for families and retirees alike.
Factors driving the boom
There are several key factors driving up the popularity of these markets:
- Affordability: With a far-below-the-national-average median home price, these cities present a good deal for buyers seeking value in return for their money.
- More Inventory: Available housing is over 30% up year-over-year during the third quarter of 2024, meaning more options for buyers.
- Quality of Life: That many of these cities boast excellent cultural attractions, robust educational facilities, and proximity to nature are further reasons that these destinations attract candidates.
Expert’s view
Manchester-Nashua is one of the “areas that offer high-paying industry and higher educational institutions” that attracts skilled labor which also are looking for “nice places to live”, according to Danielle Hale, chief economist for Realtor.com.
A report by GOBankingRates also shows that cities such as Cambridge, Massachusetts, are now the hot spots for rich, young professionals who want to escape big city chaos due to reasons which include safety, livability, and growth of wealth.
