America’s housing market has been tepid at best lately, with mortgage rates edging closer to 7% and already-high median prices remaining flat nationwide. However, the top 20 hottest housing markets in the country saw a 2.9% price increase in October compared to last year, with the median-priced home at $424,950.

High Demand and Scarce Inventory

The uptick in home prices can be attributed to high demand and scarce inventory. According to Realtor.com® senior economic research analyst Hannah Jones, active listings were up nationally by 29.2% in October, but housing stock increased by only 19.7% in the top 20 hottest markets. Demand in these markets, as measured by views per property, was 2.6 times the national level.

Manchester, NH: America’s Hottest Market

The Manchester, NH, metro area topped the list for the 10th month in a row in October and has been the hottest housing market 31 times in the data’s history. Its relative affordability compared to Boston, located 55 miles away, makes Manchester a perennial favorite. The median home price in Manchester is $572,000, significantly lower than Boston’s median price of $837,450. Additionally, New Hampshire boasts zero state income or sales tax, further boosting its appeal.

Dominance of the Northeast and Midwest

The Northeast and Midwest continue to dominate the hottest markets rankings. Connecticut leads with four hot metros: Hartford (No. 3), Worcester (No. 6), New Haven (No. 15), and Norwich (No. 16). Ohio also performed well, with Akron (No. 9), Canton (No. 12), and Toledo (No. 20) making the list.

Affordability and Quick Access

Connecticut’s appeal lies in its proximity to major hubs like New York and Boston, excellent public schools, and beautiful green spaces. Meanwhile, Ohio’s affordability is a significant draw, with median home prices ranging from $252,000 in Canton to $527,000 in Worcester.

Most Improved Large Markets

The New York-Newark-Jersey City metro area saw the biggest jump in its hotness ranking among large U.S. metros, climbing 88 spots to No. 164. Philadelphia and Pittsburgh also climbed the rankings, as did Detroit, which rose 35 spots to No. 56.

Pandemic Boomtowns’ Waning Popularity

Some metros, like Tampa, FL, and Asheville, NC, which were once popular during the COVID-19 pandemic, have fallen in popularity. These areas faced devastation from hurricanes Helene and Milton in October and are currently rebuilding.

Faster Sales in Hot Markets

Homes in the hottest markets spent 35 days on the market in October, compared to the national average of 58 days. This faster pace is driven by high demand and scarce inventory, leading to increased competition and quicker sales.

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