This Northeast Region Has 3 of the Hottest Housing Markets—but Still Remains ‘Affordable’

Homebuyers in the Northeast aren’t backing down—even as property prices continue to climb and inventory becomes increasingly tight.

Several markets in the region are heating up at a fast pace and now rank among the hottest in the U.S., according to the Realtor.com® June Hottest Housing Report.

The three most expensive New England markets on the list all saw prices climb annually last month. Manchester-Nashua, Worcester, and Providence-Warwick experienced solid growth, ranging from 3.4% to 6.2%, with median list prices hovering just below $600,000—more than $100,000 above the national median.

However, many buyers are still turning to these areas as “affordable” options thanks to their proximity to much pricier metropolitan hubs, such as Boston, which are, more often than not, within an easily commutable distance.

But relative affordability is not the only thing turning up the heat.

A key factor is extremely tight inventory in the Northeast. The region is experiencing some of the slowest recovery in housing supply nationwide: Inventory rose just 16.5% year over year in June, the lowest of any U.S. region, according to Realtor.com economists.

That’s largely due to sluggish new construction, which can’t keep up with demand. The result: competitive bidding, fast-moving listings, and continued price growth in areas that might otherwise have cooled.

While high prices might be giving some buyers pause, the numbers show that demand in the Northeast remains strong, especially in midsize metros that offer a balance of suburban charm and city access.

Realtor.com senior economic research analyst Hannah Jones points out that the increasing emphasis on hybrid working environments—where employees are required to be in the office for at least a few days a week—is also adding to the growing interest in commutable areas.

“Hybrid working models give households who work in a major metro more options for where to live,” Jones explains.

In other words, it’s not just about affordability. It’s about proximity, lifestyle, and long-term value—and right now, the Northeast is delivering on all three.

“You can get to Boston, or on weekends enjoy the most beautiful coastal areas like Cape Cod or Cape Ann, or head to Maine or the gorgeous mountains and lakes of New Hampshire and Vermont,” Suzanne Koller, a Boston-based real estate agent with Compass, says.

“Our economy is fed by so many different industries (biotech, hospitals, higher ed, tech, etc.), so it’s diversified,” Koller adds.

“Plus, the history and quaintness is so unique! Boston is an incredible city, and I bet buyers will kick themselves in a few years for not picking up an investment there now while they can.”

Manchester-Nashua, NH

Manchester-Nashua ranked fifth on hotness and fourth year over year. Homes in the region were on the market for a median of 29 days with a median list price of $600,000. 

Job opportunities, quality of life, and proximity to Boston make it an appealing place for people to put down roots. The region offers a mix of urban and suburban living, with access to outdoor recreation and a strong sense of community.

“Though these markets are pricier than the national norm, Manchester-Nashua and Worcester are priced lower than nearby Boston, making these areas highly desirable for commuters looking to balance quality of life and proximity to work,” says Jones.

While housing costs can be higher than the national average, New Hampshire has no state income tax and no sales tax, which can make it attractive to retirees and those looking to save on taxes.

Providence-Warwick, RI

Providence-Warwick ranked 15th on hotness and sixth year over year. Homes in the region were on the market for a median of 31 days with a median list price of $600,000. 

Located just south of Providence, Warwick is the second-largest city in Rhode Island. It boasts over 39 miles of coastline, giving residents easy access to beaches, marinas, and scenic views of the Narragansett Bay.

The area also offers a strong job market, particularly in health care, education, and technology. Providence is home to several prestigious universities, including Brown University and Rhode Island School of Design, which attract students and young professionals.

The cost of living in Providence-Warwick is generally more affordable than other major East Coast cities, particularly when it comes to housing. It offers a mix of single-family homes, waterfront condos, and affordable apartments.

“While other parts of the country have started to catch up to, or even go beyond, pre-pandemic inventory levels, high demand and limited new construction in the Northeast has kept inventory levels relatively low. Demand outpaces supply in many Northeast metros, keeping competition fierce and prices climbing,” Jones adds.

Worcester, MA

Worcester ranked 12th on hotness and fourth year over year. Homes in the region were on the market for a median of 25 days with a median list price of $577,000.

The city offers a more affordable alternative for those seeking to live in Massachusetts without sacrificing access to amenities, job opportunities, or cultural attractions.

“Much more affordable but still a great quality of life,” says Koller. “The Boston suburb prices are pushing buyers farther west and north for sure. Many can’t totally work from home any longer, but I am seeing a lot of hybrid—making the drive two to three times a week might seem doable.

“The North Shore and South Shore are always popular, especially with the summer allure. But they have commuter rails and even a ferry to Boston from the South.”

Koller explains that towns well west of Boston with train access are hot, and buyers will look outside 495 to get a better value. A new commuter rail that opened to the Farm Coast (South down near New Bedford/Rhode Island) is expected to draw more growth to those areas.

“Everyone’s talking about how prices are up. But honestly, the more interesting story is how affordability is shifting, not disappearing,” adds Elena Novak, lead real estate researcher and analyst at Propertychecker.com.

“Take Worcester. Prices are up around 7.8% year over year, which sounds like a lot. But compare that to Boston, where homes regularly top $900,000, and Worcester starts looking like a deal.”

Where does your city rank

Overall, the Northeast claimed 13 of the 20 hottest housing markets—including the top six spots. Springfield, MA, took the top spot for the second month in a row.

“This expansion of the ‘commutable’ range has pushed more demand into metros that are slightly farther out from major economic hubs,” says Jones.

The Realtor.com Market Hotness rankings take into account two aspects of the housing market: 1) market demand, as measured by unique views per property on Realtor.com, and 2) the pace of the market as measured by the number of days a listing remains active on Realtor.com.