The ever-changing housing market brought us many surprises, but the demand for homes in “unexpected” places is recently popping up across the country. Homebuyers are no longer interested in properties from hot markets in California or Florida. Instead, they’re looking at Indiana, New Hampshire, and Connecticut.
What attracts home buyers to these areas? Let’s explore what these three states have to offer out-of-state homebuyers and which cities are popular within the states.
Indiana: Cheap Prices
According to Realtor.com, Elkhart, Lafayette, and Fort Wayne make up three out of four cheapest markets in this ranking, offering median home prices much lower than average, which has attracted many out-of-state buyers. The average prices for homes in these three markets are $300,000, and the cost of living is much lower than in other popular cities.
New Hampshire: No State Taxes
New Hampshire towns of Manchester, Concord, and Claremont have drawn the attention of out-of-state homebuyers due to the state’s lower cost of living and no income or sales taxes. Before the pandemic, New Hampshire was a popular tourist destination and home for most retirees. However, the pandemic and the rise of work-from-home culture have resulted in more out-of-state buyers buying second homes and other investors looking for properties for short and long-term rentals.
Connecticut: “Affordable” Commute
The small state of Connecticut brings areas such as Hartford, Norwich, and New Haven to the top of the hot market list. New Haven, in particular, climbed 162 spots in May and made the 18th ranking on Realtor.com’s list. While home prices in New Haven are slightly more expensive than those in Indiana and New Hampshire, homebuyers have the advantage of living near large employment centers and cities.
New Haven is halfway between Hartford and New York City, at the intersection of I-95 and I-91 highways, and on the Long Island Sound. For most homebuyers aiming to work in major cities, a home in New Haven is the best of both worlds regarding affordable housing and good commute time.
Affordability is Trending
These popular and “unexpected” housing markets show a common thread of affordability. High-priced options like California have been replaced as popular markets by more affordable locations in the country’s midwestern and northeastern areas. The average listing price of the 20 hottest markets was $374,000 in May 2022, which falls 16.3% lower than the national median.
On this list of May 2022 markets, Connecticut and Indiana tie for having the most markets within the state, each with 3 ranked locales. Wisconsin and other midwestern locations were also well-represented on the list.
Not only are home buyers looking for affordability for their home, but we have also seen a growing interest in affordable beach markets. For example, Atlantic City, New Jersey; Deerfield Beach, Florida; and New London, Connecticut have all topped affordable beach lists. Each spot has a median home price below $300,000.
Those interested in leaving the hustle of city life behind have been drawn to the following small towns for their affordability: Elk City, Oklahoma; Albert Lea, Minnesota; and Jamestown, North Dakota. These towns offer the median home price of under $250,000.
The theme of affordability can be seen across different aspects of the real estate market as homebuyers closely examine prices while making their purchases.
How Does This Help You?
As a real estate agent, staying up-to-date with market trends can help boost your credibility and make it easier for you to engage and help your clients. You will feel more empowered to market yourself to different types of buyers because you will better understand what drives them. You can demonstrate to them that you are committed to being the agent that will help them find their dream home.