While certain cities across the U.S. maintain enduring popularity among homebuyers, there are a few underdog up-and-comers that are rapidly climbing the ranks. Leading the pack is Sioux Falls, SD, which has seen an impressive surge in popularity.

Sioux Falls Leads the Pack

According to the Realtor.com® September 2024 Hottest Housing Markets report, Sioux Falls—a city of 200,000 residents—has climbed an astonishing 131 spots since last year. This remarkable jump moved it from near the bottom to the middle of the rankings for the 300 largest metros in the country. “This is a ‘warm’ market that is ‘heating up’ compared to last month, and ‘heating up’ compared to last year,” says Hannah Jones, Realtor.com senior economic analyst.

Why Sioux Falls is on the Rise

To determine market hotness, Realtor.com analyzes market demand based on the number of unique views on Realtor.com and the number of days a listing remains active before being sold. Homes in Sioux Falls spend an average of 39 days on the market, which is 14 days faster than the overall U.S. market. Additionally, the pace of home sales in Sioux Falls is moving 11% faster than last year.

So, what’s driving this skyrocketing desirability? Jones points to the median home price in Sioux Falls, which is $358,000—$67,000 less than the latest U.S. median list price of $425,000. The city’s strong job market, with major employers like Sanford Health and Wells Fargo, has also drawn significant interest. “Coupled with a relatively affordable housing market compared to the national average, it’s becoming an attractive option for both first-time homebuyers and investors,” says Kwame Darko, CEO of Kwame Buys Houses.

Additionally, Sioux Falls’ emphasis on developing community spaces, improving infrastructure, and increasing outdoor recreation opportunities has created a desirable quality of life appealing to a wide range of people. “It’s a city that offers growth potential without sacrificing its charm,” adds Darko.

Other Markets Gaining Popularity

Other cities climbing the popularity ranks include Bloomington, IL, which shot up 112 spots, and Poughkeepsie, NY, which rose 89 spots. These markets share one key feature: their median home list prices are well below the national average. Bloomington, with a median home list price of $295,000, can save homebuyers up to $130,000 compared to someone buying a typically priced home.

Affordable Markets Shine

“Affordable markets in the Northeast and Midwest continue to shine as buyers look for areas where they can afford more for less,” says Jones. Smaller towns that have “heated up” the most attract attention from buyers because prices remain reasonable, allowing shoppers to achieve homeownership in a challenging housing market. These areas offer the charm of small-town living without sacrificing access to jobs and amenities.

Other Notable Up-and-Comers

Other up-and-comers that jumped into the 20 Hottest Markets for September include Boston, Norwich, CT, Rochester, NY, and Peoria, IL. Manchester, NH, remains at the top of the hot list for the ninth month in a row.

Join the Conversation: What are your thoughts on the rising popularity of these cities? How do you see these trends affecting the real estate market? Share your insights and engage with our community!

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