America's hottest markets right now are also affordable—but come with a chilling catch

To find the hottest real estate markets in America, head to the coldest parts of the country.
The most desirable locations for homebuyers today come with one bone-chilling caveat: Many of these hotspots lurk in the snowier Northeast and Midwest, according to a recent Realtor.com® report. And while some house hunters may not like colder weather, most are likely to appreciate the cooler home prices and lower cost of living in these areas.
The metropolis of Manchester, New Hampshire, an hour north of Boston, took first place - for the 11th month in a row! The subway in Rochester, New York, near the Canadian border, came in second after tying with Manchester for first place last month. (Ranking is based on the number of views properties in these metropolitan areas receive on Realtor.com, and how quickly properties sell.)
"In the South and the West, which contain hot markets that were really popular even before the [COVID-19] pandemic, prices were just driven so high," says Hannah Jones, an economic data analyst at Realtor.com. "Even if they are places that people can enjoy living in, many buyers have not been able to invest."

Why does Manchester rule the hottest markets?
While metro Manchester prices are slightly higher than the national average of $425,000, that hasn't stopped the small city from dominating the list of hottest markets.
The reason: Homes here still sell for far less than properties in Boston. The median list price in Manchester was $495,000 in October – compared to $745,000 in the Boston metro area. (Targets include the main city and surrounding towns, suburbs, and smaller urban areas.)

Manchester is now essentially a "suburb of Boston", notes Jones. Commuting is also more feasible for many shoppers if they can work remotely or only need to come into their offices one or two days a week.
Rochester is also popular with buyers because it is still so affordable
In contrast, Rochester is not a suburb of anything but very much its own city. The Rust Belt metro area, home to camera maker Kodak, has struggled over the decades, which explains the lower home prices. The median list price in this cold-weather metro was just $225,000 in October.
"The story with the Rust Belt is really that people are able to optimize the quality of life," says Jones. "You get more space and areas that have a strong economy but are more affordable. You can get a lot for your money."
In fact, there are no metro areas in the West or South among the 20 hottest November markets. The West has long been a much more expensive region of the country, while much of the South is starting to slip out of reach after two years of turbocharged growth throughout the pandemic.
For Rochester, a strong economy includes several world-class universities, including the Rochester Institute of Technology and the Eastman College of Music, as well as the industry that graduates from these schools help foster. The city was named number 1 in the country as a technology center by an MIT study from 2021, for example. And music lovers don't just get to take advantage of the performances at the college: the city also boasts an internationally known jazz festival and the Fringe Festival.
Daniel Riley, owner of Rochester-based Better Homes and Gardens Real Estate Prosperity, traces its history back several generations in the city. And although few think of the area as a "beach town", the city lies along the shores of Lake Ontario. It's also about an hour from New York's Finger Lakes region, with its outdoor recreation and wineries opportunities, as well as an hour from Buffalo, New York, where she can go and watch NHL games.
"It has a large population, but it's like a small town," Riley says. "It's the best of both worlds."
And what about this cold weather?
"I just can't see Christmas when it's 80 degrees outside," Riley says.