While certain cities across the U.S. enjoy steady popularity among homebuyers, other cities are weaker and up-and-comers—and Sioux Falls, SD leads the pack.
According to Realtor.com’s September 2024 Hottest Housing Markets report, this city of 200,000 people climbed an astounding 131 spots since last year, moving from the bottom of the ranking for the nation’s 300 largest metros to the middle .
This is an impressive jump.
“This is a ‘warm’ market that is ‘warming up’ compared to last month and ‘hotting up’ compared to last year,” says Realtor.com Senior Economic Analyst Hannah Jones. .
Why Sioux Falls is growing in popularity
To determine market heat, 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 being 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 US market.
Plus, the pace of home sales in this city is moving 11% faster than last year.
So what is Sioux Falls’ growing desire for?
Jones points to the median home price here at $358,000 — which is $67,000 less than the most recent median U.S. list price of $425,000.
In addition to affordable housing, Sioux Falls’ strong job market—top 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 is becoming an attractive option for both first-time home buyers and investors,” says Kwame Darko, CEO of Kwame Buys Houses.
“Furthermore, the city’s emphasis on developing community spaces, improving infrastructure and increasing outdoor recreation opportunities has created a desirable quality of life that is attractive to a wide range of people,” adds Darko.
“It’s a city that offers growth potential without sacrificing its charm.”
Other markets are growing in popularity
Other cities that are climbing the popularity rankings faster include Bloomington, IL (up 112 spots) and Poughkeepsie, NY (up 89 spots).
One thing all three of these hot growth 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 home buyers a whopping $130,000 over someone buying a typically priced home.
“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’ the most are all smaller cities that are likely to attract buyers because prices are still reasonable, allowing buyers to achieve homeownership in a challenging housing market. These areas offer the charm of small-town living, without sacrificing access to jobs and amenities.â€
Other newcomers that jumped into the 20 hottest markets for September include Boston, Norwich, CT, Rochester, NY and Peoria, IL.
Manchester, NH, remains at the top of 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.
Median list price: $358,000
Median list price: $295,000
Median list price: $399,000
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Image Source : nypost.com