Realtor.com/Getty Images
The top housing market in the U.S. this summer is a popular New England destination where budget-conscious homebuyers can save more than $250,000 compared with nearby Boston.
Manchester, NH, a city of 430,000 people, located less than an hour north of “Bean Town,” topped the Summer 2025 Wall Street Journal/Realtor.com® Housing Market Ranking thanks to robust buyer demand, a brisk selling pace, and significant price growth over the last year.
The quarterly ranking evaluates the 200 most populous metros as measured by the U.S. Census Bureau, weighing real estate demand, housing inventory, median days on the market, median price trends, property taxes, climate risks, unemployment rate, wages, regional price parities, amenities, and other factors that affect the cost of living and quality of life.
The typical home in Manchester had a listing price of $599,900 in June, which was nearly $160,000 higher than the national median, making it the most expensive metro on the list.
Still, a house in Manchester was a bargain compared with Boston, where the median listing price last month was $250,000 higher.
It’s worth noting that while the median household income in Manchester was not enough to purchase a typical home in town, Boston’s median income was well above the minimum recommended income to afford property in Manchester.
(Realtor.com)
Simply put, high-earning buyers from Boston were turning to the more affordable Manchester in search of better value.
Suzanne Damon, the founder and CEO of The Damon Home Team real estate agency, tells Realtor.com she is not surprised that her hometown of Manchester has soared in popularity among buyers.
“What makes people want to come? It’s the way of life and the low cost,” she says. “People are often shocked at how much they can get for their money here.”
Manchester has no shortage of selling points, including a bustling local economy, a high-quality school system, and an abundance of green spaces.
Damon confirms that Manchester’s appeal is especially strong for people from Boston.
“Their buying power goes further because the cost of living is lower and there is no state income or sales tax,” says the veteran real estate professional. “They don’t have to give up access to culture, community, or convenience.
“Manchester is only 55 miles from Boston and is a great place to live a fun and cheap life. Travel is straightforward, even from our regional airport.”
On top of that, Manchester boasts a low unemployment rate of just 2.6%, which is half of Boston’s 5.2%, as well as high climate resilience.
According to the most recent climate data, a mere 4.4% of properties throughout Manchester are at severe or extreme risk of experiencing one of the five considered risks, such as floods, extreme heat, and wind, over the next 30 years.
Given all those factors, it should come as no surprise that Manchester was crowned America’s Hottest Market in January 2025 thanks to a combination of high buyer demand and low inventory.
Summer 2025 housing market overview
The summer buying season got off to a rocky start, coming off a sluggish spring hampered by elevated mortgage interest rates and economic uncertainty that kept many would-be house hunters on the sidelines.
Potential buyers continued to face major headwinds in June, causing home purchase sentiment to plummet as consumers fretting about their job security grew more pessimistic.
In some good news, recent employment figures suggest that buyers are well-positioned to jump back into the market, as job growth accelerated and unemployment edged down in June.
Meanwhile, inflation ticked up last month, making a Federal Reserve interest rate cut unlikely this summer.
On the seller side, inventory levels have been rising, surpassing the 1 million active listings mark in May and June—a milestone not seen since December 2019.
“Despite notable improvements in for-sale inventory, buyers largely remained on the sidelines in the late spring and early summer, indicating that housing costs, not inventory availability, are the primary barrier to home sales,” says Realtor.com senior economic research analyst Hannah Jones.
Against this turbulent economic backdrop, homebuyers remain divided: Lower-income buyers are driving demand in affordable markets, while their higher-income counterparts shop for properties in expensive areas near major economic hubs.
Northeast and Midwest reign supreme
Like in the Q1 2025 ranking released in April, nearly every one of the top 20 metros on the latest WSJ/Realtor.com ranking was either in the Northeast or the Midwest.
Besides the No. 1 Manchester, seven other Northeastern metros made the top 20 list, including Springfield, MA, New Haven CT, and Worcester, MA.
Although less affordable than Midwestern cities, Northeastern markets remain red-hot because of the region’s low supply of for-sale homes.
The Midwest’s popularity in today’s unsettled market is due to the region’s housing affordability, low cost of living, and climate resiliency.
This quarter’s ranking features three metros each in Ohio and Wisconsin, two in Michigan, two in Indiana, and one in Illinois.
On the other hand, metros in Texas and Florida continue to dominate the bottom of the 200-strong list as surging inventory cools buyer demand and keeps homes on the market longer.
Additionally, areas in Texas and Florida see high risks of property damage due to climate-related natural disasters, adversely impacting their relative rank among U.S. metros.