Surprising Illinois city named hottest housing market in the US for the first time
A little known town in Illinois is called the ssurprisingly hottest housing market in the country.
Rockford, known for its charming streets and lush greenery, has jumped to the top Realtor.com’s monthly list of America’s hottest markets.
This is the first time the city has claimed the top spot, beating out frequent winner Manchester, New Hampshire, which has dominated the list 31 times since 2017.
Located just an hour and a half from Chicago, Rockford had a median home price of $242,000 in December — well below the national average of $356,000, according to Zillow.
The city’s housing market is considered “hot” because homes sell quickly, with an average of just 43 days on the market compared to the national average of 70 days.
“Rockford’s hotness means high demand is being met with low inventory as buyers claim available homes,” Realtor.com senior economic analyst Hannah Jones said in the report, which covered December.
“This affordable area has seen continued demand this year as mortgage rates and home prices discourage buyers from looking in more expensive areas,” she explains.
For the 15th month in a row, every market on Realtor’s Hottest Housing Markets list came from the Northeast or Midwest. In December, the two regions split the list evenly, with each claiming 10 places.
Rockford jumped to the top of Realtor.com’s list of hottest housing markets late last year
According to Realtor.com, Rockford saw three times as many people viewing homes for sale than the national average.
The average list price in the city rose by as much as 21 percent in December compared to the same period a year earlier.
In contrast, national average house prices fell by 1.8 percent over the same period.
The northern Illinois city also topped the Wall Street Journal’s “housing markets to watch” list last year, showing that the strongest housing markets still have good potential for future growth.
The city is a draw for many families as it is equipped with multiple hospitals and good employment prospects with several aerospace companies and manufacturing employers.
However, the area’s unemployment rate is still nearly double the national average and stood at 8.1 percent in November.
Every market on the list of hottest housing markets is currently in the Northeast and Midwest.
“The Midwest and Northeast have been home to most of the nation’s hottest markets since mid-2022 when mortgage rates picked up steam,” Jones explains.
Rockford is known for the lush greenery of its northern Illinois area
Rockford, an hour and a half drive from Chicago, had a median home price of $242,000
Rockford is known for its charming streets and local community
Zillow also revealed that the top five hottest housing markets for 2025 are all in the Midwest and Northeast.
The listing site named Buffalo, New York as the hottest housing market of the year, followed by Indianapolis; Providence, Rhode Island; Hartford, Connecticut; and Philadelphia.
Increased mortgage rates have largely frozen the national housing market as those with cheaper mortgages have put plans to move on hold.
According to Freddie Mac, the average 30-year fixed mortgage rate was 6.91 percent last week.
The ‘Oracle of Wall Street’ Meredith Whitney previously told DailyMail.com that interest rates need to fall below 6 percent to boost the housing market.