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Rockford, Illinois, has unexpectedly become the hottest housing market in the US, topping Realtor.com's December list for the first time and surpassing long-time leader Manchester, New Hampshire. An unassuming city outside of Chicago has surprisingly ranked as the hottest housing market in the country.
Rockford, Illinois, has surged to the top of the US housing market, overtaking cities that have dominated for years.
Realtor.com named Rockford the hottest housing market in the country for December, knocking long-reigning champion Manchester, New Hampshire off its throne after a 31-time winning streak since 2017.
Located just 90 minutes from Chicago, Rockford has become a magnet for homebuyers seeking affordability and fast-moving deals.
The median home price in Rockford hit $242,000 in December — quite below the national average of $356,000, according to Zillow. Homes in the area are selling at lightning speed, averaging just 43 days on the market compared to the national average of 70 days.
“Rockford’s hotness means that high demand is met with low inventory as buyers claim available homes,” said Hannah Jones, senior economic analyst at Realtor.com.
Demand in Rockford has skyrocketed, with three times more people viewing homes there compared to the national average. This surge pushed home prices up 21% in December from the previous year, while prices nationally slipped by 1.8%. Affordability is driving this boom.
“This affordable area has seen sustained demand this year as mortgage rates and home prices deter buyers from searching in higher-priced areas,” Jones added.
Rockford’s appeal isn’t limited to bargain hunters.
The city offers solid job prospects in manufacturing and aerospace, as well as access to quality healthcare. However, economic hurdles remain — Rockford’s unemployment rate stood at 8.1% in November, nearly double the national rate.
This surge aligns with a broader shift in the housing market. For the 15th straight month, every city on Realtor.com’s hottest markets list has been in the Midwest or Northeast.
Zillow also predicts this trend will continue into 2025, naming Buffalo, New York, as the next market to watch, followed by Indianapolis, Providence, Hartford and Philadelphia. The nationwide housing market has slowed under the weight of high mortgage rates.
The average 30-year fixed mortgage rate was 6.91% last week, according to Freddie Mac. Financial expert Meredith Whitney has warned that rates need to fall below 6% to jumpstart market activity.
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