Housing affordability, or lack thereof, emerged as a key issue in last week’s presidential election, and many homebuyers continue to search for markets that won’t strain their budgets.
But here’s some promising news: Three affordable Midwest markets—Rockford, IL, Akron, OH, and Canton, OH—have secured prime spots in the top 20 of the October Realtor.com® Hottest Housing Markets report, ranking No. 4, No. 9, and No. 12, respectively.
These cities feature median home prices around $250,000, a hefty $175,000 below October’s median home price of $424,950. The Midwest has consistently ranked on the top 20 hottest markets list since February 2022, thanks to its budget-friendly prices—and hefty monthly mortgage payment savings.
“The typical [monthly] mortgage payment, assuming a 10% down payment, would be $1,455 or less in these areas,” says Hannah Jones, Realtor.com® senior economic research analyst, in her report.
“Including tax and insurance costs, the minimum recommended income to afford this payment is roughly $73,000, which is about 10% less than the national median household income,” adds Jones.
Since February 2022, the Midwest has consistently ranked on the hottest markets list, and it’s easy to see why.
Beyond the appealing price range, Rockford, Akron, and Canton offer quality living and convenient proximity to major cities.
Read on to find out why this trifecta of cities attracts so many budget-minded homebuyers.
Median list price: $242,000
Homebuyers are flocking to Rockford, and one reason is free college tuition.
All students who live in Rockford, attend Rockford public schools, and maintain a 3.0 GPA are eligible to attend Northern Illinois University tuition-free through the Rockford Promise Northern Illinois University Scholarship Program.
Additionally, the region hosts several hospital systems, a thriving aerospace industry, and a robust manufacturing workforce, which attracts even more house hunters.
“Inventory levels are still low in Rockford,” says local real estate agent David Dale Johnson, of Berkshire Hathaway HomeServices Crosby Starck Real Estate. “Some areas of the Rockford market still see full price or greater offers. Bidding wars still occur when homes are priced appropriately and in good condition.”
Rockford is located 90 miles southwest of Milwaukee and 90 miles northwest of Chicago.
“Many buyers are migrating from the Chicago area and its surrounding suburbs,” says Johnson.
It doesn’t hurt that homes in the Rockford area are around 28% less expensive than in Chicago, where the typical home cost $340,000 in October.
And the Rockford market could become even more competitive now that the presidential election is over.
“It seems like sellers and buyers tend to hold off during the three months leading to an election, then make their decision to move,” says Johnson.
Median list price: $228,000
Climate resilience is a major reason why buyers are attracted to Akron. Just 1.8% of Akron properties are at severe or extreme risk of experiencing a natural disaster over the next 30 years.
“Greater Akron is an exceptional location that blends urban excitement with natural beauty,” says Gregg Mervis, president and CEO of the Akron/Summit Convention & Visitors Bureau.
The city has scenic hiking trails, a fantastic culinary scene, and great shopping at local, one-of-a-kind stores.
“Greater Akron is overflowing with fun for everyone,” says Mervis, who lists the Akron Zoo, the Akron Art Museum, and the Akron Civic Center as must-sees.
Houses in the area spent just 36 days on the market in October, 22 days less than the national average.
“High demand and scarce inventory conditions drive views per property higher, upping the competition for homes in the hottest markets and leading to snappier home sales,” says Jones.
Median list price: $252,000
Last month, Canton ranked No.1 in the Wall Street Journal/Realtor.com® Housing Market Ranking.
What makes Canton so desirable? According to Ohio real estate investor Paul Gabrail, who grew up in Canton, one of the area’s biggest draws is its low cost of living.
Many home shoppers search for Canton properties from nearby bigger cities such as Akron and Cleveland.
“As you get closer to Cleveland going north, the cost increases substantially,” explains Gabrail.
Canton, known as “America’s Playing Field,” is the birthplace of the NFL and is the home of the Pro Football Hall of Fame, “which garners a lot of national exposure,” Gabrail says.
For real estate investors looking for an up-and-coming housing market, Canton is a safe bet, he says.
“In terms of ROI, if you can buy a property for a relatively low price while the nation’s income goes up, you’ll probably do better in cities like Canton versus bigger cities in the West like Los Angeles,” he says.
