3 cities that have skyrocketed in popularity—and can save homebuyers up to $130K

16 Oct 2024, 20:54 · New York Post

While certain cities across the U.S. enjoy an enduring popularity among homebuyers, other cities are underdog up-and-comers that are shooting up the ranks—and Sioux Falls, SD is leading the pack.

According to the Realtor.com® September 2024 Hottest Housing Markets report, this city of 200,000 climbed an astonishing 131 spots since last year, moving from near the bottom of rankings for the 300 largest metros in the country to the middle.

That’s an impressive jump.

“This is a ‘warm’ market that is ‘heating up’ compared to last month, and ‘heating up’ compared to last year,” says Realtor.com senior economic analyst Hannah Jones.

Why Sioux Falls is rising in popularity

To determine market hotness, Realtor.com analyzes market demand based on two factors: the number of unique views on Realtor.com, and the number of days a listing remains active before getting snapped up by buyers.

Homes in Sioux Falls spend an average of 39 days on the market, which is 14 days faster than the overall U.S. market.

Plus, the pace of home sales in this city is moving 11% faster than last year.

So what is Sioux Falls’ skyrocketing desirability all about?

Jones points to the median home price here, $358,000—which is $67,000 less than the latest U.S. median list price of $425,000.

The latest Hottest Housing Markets report from Realtor.com® reveals that the city has climbed an astonishing 131 spots since last year. Bloomberg via Getty Images

In addition to affordable homes, Sioux Falls’ strong job market—major employers include Sanford Health and Wells Fargo—has drawn a wave of interest to the city.

“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, the city’s emphasis on developing community spaces, improving infrastructure, and increasing outdoor recreation opportunities has created a desirable quality of life that’s appealing to a wide range of people,” adds Darko.

“It’s a city that offers growth potential without sacrificing its charm.”

Other markets climbing in popularity

Other cities that are climbing the popularity ranks the quickest include Bloomington, IL (which shot up 112 spots), and Poughkeepsie, NY (up 89 spots).

One thing that all three of these up-and-coming hot markets have going for them is that their median home list prices are well below the national average.

Bloomington, with a median home list price of $295,000, can save homebuyers a whopping $130,000 over someone buying a typically priced home.

The homes in the Sioux Falls area average being on the market for 39 days, which is 14 days faster than the overall U.S. market. Bloomberg via Getty Images

“Affordable markets in the Northeast and Midwest continue to shine as buyers look for areas where they can afford more for less,” says Jones.

“The metros that have ‘heated up’ the most are all smaller towns that likely attract attention from buyers because prices are still 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 up-and-comers that jumped into the 20 Hottest Markets for September include Boston, Norwich, CT, Rochester, NY, and Peoria, IL.

Manchester, NH, remains atop the hot list for the ninth month in a row.

Here’s a closer look at some listings in the “most improved” cities on the popularity front.