Fort Wayne, Indiana, a mid-sized city of about 270,000 residents, is now the hottest housing market in the U.S., according to a new analysis from the Wall Street Journal and Realtor.com.
The ranking evaluated 200 metropolitan areas and signals a shift in homebuyer preferences toward affordable Midwestern markets amid persistent national housing challenges.
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Considering factors like real estate demand, housing inventory, and economic indicators, the study placed Fort Wayne at the top of a list dominated by Midwestern cities. Twelve of the top 20 markets are in the Midwest, with Ohio claiming five spots, pointing to the region’s growing appeal to homebuyers seeking affordability and economic stability.
“Homes priced under $200,000 are in high demand and sell quickly,” David Brough, a Fort Wayne real estate professional, told Realtor.com. “These homes usually have several offers on them.”
Fort Wayne’s median home list price of $335,000 in June was much below the national median of $445,000, giving homebuyers an edge on affordability that has become a key driver in today’s housing market. Canton-Massillon and Akron, both in Ohio, secured the second and third spots in the ranking, respectively, with median home prices of $255,000 and $265,000.
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“Only five of the top 20 markets were priced higher than the U.S. median in June, underscoring the importance of affordability to today’s buyers,” said Hannah Jones, senior economic research analyst at Realtor.com.
The shift toward Midwestern markets comes as buyers grapple with persistently high home prices and mortgage rates in many coastal areas. According to the report, mortgage rates ranged from 6.86% to 7.22% in the second quarter of this year, pricing many potential buyers out of more expensive markets.
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However, the popularity of the more affordable areas is beginning to impact local markets. In June, the top 20 markets saw prices climb an average of 6% year over year, compared to flat price growth nationally.
Beyond affordability, Midwestern markets offer other appealing factors. Fort Wayne has a low unemployment rate of 3.3%, compared to the national rate of 4.1% in June. Climate resilience has also emerged as a factor in market appeal. Jones pointed out, “These Midwest markets boast considerable climate resilience relative to the 200 largest U.S. metros with less than 3% of local properties at risk of extreme climate-related damage over the next 30 years.”
Despite the positive trends, inventory challenges remain. Inventory levels, while improving, are still well below pre-pandemic levels in many of the growing markets. On average, for-sale inventory was 51.8% lower than pre-pandemic levels in the top-ranked markets, compared to a 32.4% decrease nationally.
The rise of these Midwestern cities suggests a reevaluation of homebuyers’ priorities, with affordability and economic stability gaining prominence alongside traditional factors like job opportunities.
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This article Forget the Coasts, America’s Hottest Housing Market Is In The Heartland: ‘High Demand And Sell Quickly’ originally appeared on Benzinga.com
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