Small Midwestern towns dominated emerging affordable housing markets in the first quarter of 2023, even as sales across the country continued to fall significantly despite staggering interest rates.
Cities in Indiana, Illinois, Iowa, Kansas and Nebraska were found to be the best in the country for buyers looking for affordable homes that are expected to increase in value, according to new data compiled by broker. com.
Although home sales across the country fell 22 percent in March compared to the same time last year, the Wall Street Journal, many midwestern cities saw their market grow while remaining affordable for local incomes. Topping the list was Lafayette, Indiana, where the median home price was $289,000 – about a third of the national median of $424,000.
In the top 20 emerging markets, there was not a single city on the West Coast – where home prices are the highest in the United States – while only four were on the East Coast.
Not only Lafayette had median home prices below the national average – 18 of the 20 largest markets did.
The only cities to top the median were Manchester, New Hampshire, ranked 10th with a median of $550,000, and Knoxville, Tennessee, ranked 20th with a median of $470,000.
The average population of the top 20 cities was less than 400,000.
Realtor.com collected data from 300 of the largest metropolitan areas in the US and factored in lifestyle metrics such as real estate taxes, commutes, unemployment rates and median wages, along with the availability of business loans.
In addition to the fact that home sales fell at the same time last year, the number of new listings also fell by 20 percent.
“We continue to see this shift in demand to lower-cost markets, many of which are in the Midwest,” said Realtor.com analyst Hannah Jones. “They didn’t see the same kind of price increases as bigger cities during the [COVID-19] pandemic, so that they remained affordable.’
“These are some of the few markets where local residents and first-time buyers can afford to buy a house based on local salaries,” she said.
Data showed that Lafayette, Indiana, was the top emerging housing market in the United States
1.Lafayette, Indiana
The city of Lafayette, Indiana turned out to be the top emerging market in the country with a median home price of $289,000. It was the second quarter in a row that the city topped the ranking.
About 225,000 people live in the city’s metro area, while Purdue University and a number of prominent manufacturing companies call it home. Subaru, Caterpillar and Wabash National Corp. are all located in the city.
“Homes in Lafayette are significantly more affordable and it has a strong economy,” Jones said.
A three bedroom home in Bloomington, Illinois, currently on the market for $389,900
2.Bloomington, Illinois
The second best city was Bloomington, Illinois, where the median home price was $339,000.
The Bloomington metro area had a population of approximately 191,067. State Farm Insurance is located there, as is the main campus of the University of Illinois.
Current listings in town include a 2,010 square foot, three bedroom, three bath home for $255,000, a 2,688 square foot, 3 bed home on 2.74 acres for $389,900, and a 5 bedroom home for 4,368 square feet built in 2023 for $549,900.
Indian Elkhart ranked third with an average home price of $275,000
A four-bedroom house in Elkhart, Indiana, that sold in April for $220,000
3. Elkhart, Indiana
With a population of approximately 53,923, Elkhart, Indiana came in third with a median home price of $275,000.
Known as the “band instrument capital of the world,” a prominent employer in the area is instrument manufacturer Conn-Selmer.
Recent sales in the city include a 1,988-square-foot four-bedroom, two-bathroom home that sold for $200,000 this month, a 2,134-square-foot four-bedroom home built in 1900 that just sold for $220,000, and a three-bedroom home. of 2,128 square foot home that told for $198,000.
A three-bedroom house in Lebanon, Pennsylvania, that sold in April for $320,000
4. Lebanon, Pennsylvania
Lebanon, a small city just outside the state capital of Pennsylvania, has a population of just 26,814 and a median home price of $372,000.
The city has a large number of manufacturing jobs, healthcare jobs and although its proximity to Harrisburg makes it a convenient home for many who work in the capital.
Home sales this month include a 1,640-square-foot three-bed home that sold for $259,000, a 2,804-square-foot five-bed home that sold for $550,000, and a 1,308-square-foot three-bed home for $320,000 .
Fort Wayne, Indiana has a large defense contractor manufacturing industry
5.Fort Wayne, Indiana
With a metro population of 423,038, For Wayne is Indiana’s second most populous city. It ranked fifth in the country for emerging cities with a median home price of $339,000.
The city is a major hub for manufacturing jobs in the area, and has a particularly large defense contracting presence with companies such as Raytheon Technologies, the Harris Corporation, BAE Systems, and the prominent Fort Wayne Air National Guard Station with thousands of employees.
Some recent home sales in the city include a three-bedroom, one-bathroom home for $137,000, a three-bedroom, two-bathroom home for $375,000, and a four-bedroom, 3,202-square-foot home for $360,000.
6. Topeka, Kansas
Topeka, just west of Kansas City, has a population of 232,670 and ranked sixth in Realtor.com’s ranking with a median home price of $249,000.
The state capital of Kansas is the largest employer in the city, while manufacturing companies such as Frito-Lay and Goodyear Tire Company also employ many residents.
Current listings include a three-bedroom, 1,148-square-foot home for $135,000, a five-bedroom home for $449,900, and a three-bedroom, 2,856-square-foot three-bedroom condo for $330,000.
A three-bedroom Sioux City, Iowa, that sold for $355,000 in April, above the city median
7. Sioux City, Iowa
Iowa City, the fourth-largest city in Iowa with a metro population of 149,940, ranked seventh for emerging cities with a median home price of $305,000.
The largest employers in the city are Tyson Meats, Seaboard Triumph Foods, the city school system and care groups.
Recent home sales include a three-bedroom house that cost $190,000, a three-bedroom house that cost $225,000, and a 2,451-square-foot three-bedroom house that sold for $355,000 this month.
8. Omaha, Nebraska
Nebraska’s largest city with a metropolitan population of 967,604, Omaha was Realtor.com’s eighth emerging city with a median home price of $345,000.
The city’s largest employer is Offutt Air Force Base, CHI Health, the city’s public school system, and health centers such as Methodist Health System, Nebraska Medical Center, and the University of Nebraska Medical Center.
Homes sold in Omaha this month include a 1,963-square-foot three-bedroom that sold for $275,000, and a four-bedroom 3,285 that sold for $386,000.
A five-bedroom house in Springfield, Illinois, that sold in April for $124,900
9. Springfield, Illinois
Springfield, the state capital of Illinois, has a population of 114,394. Realtor.com ranked it number nine for emerging cities with a median home price of $144,000.
According to a 2021 city financial report, the state of Illinois is the largest employer in the state, followed by Memorial Health System and Hospital Sisters Health System.
Recent home sales include a five-bed, 2,156-square-foot home that sold for $124,900, a three-bedroom home that went for $63,000, and a three-bedroom, 2,220-square-foot home that sold for $308,000.
A three-bedroom home in Manchester, New Hampshire, that sold for $476,000 in April
10.Manchester, New Hampshire
Manchester, New Hampshire’s most populous city with 422,937 people in the metro area, was ranked 10th in the nation for emerging cities by Realtor.com with a median home price of $550,000.
Elliot Hospital is one of the city’s largest employers, as well as Catholic Medical Center, Southern New Hampshire University, Eversource Engery, TD Bank and Citizen Bank, according to YourManchesterNH.com.
Home sales this month include a 2,124 square foot three bedroom that sold for $476,000, a five bedroom house that sold for $599,995 and a 1,500 square foot three bedroom that sold for $400,000.