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A midsize Midwestern metro located halfway between Chicago and Milwaukee is making waves as the most-budget friendly among the nation’s top 10 housing markets this summer.
A city of roughly 340,000 people, Rockford, IL, clinched the No. 9 spot on the Summer 2025 Wall Street Journal/Realtor.com® Housing Market Ranking—but it stood out for having the lowest-priced homes among all the metros on the list.
As of June, the typical home in Rockford was listed for just under $249,000, which was $192,000 below the national median for the month, according to the most recent housing market trends report.
For comparison, the median listing price in nearby Chicago was $379,900, while Milwaukee’s median was even higher, climbing to $409,950.
The quarterly ranking evaluates the 200 most populous metros, 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.
Rockford is not new to the ranking, having come in third last quarter.
(Realtor.com)
And back in the spring of 2024, the city—situated just 90 miles from Chicago—clinched the title of the top U.S. housing market, fueled by soaring demand, affordable home prices, and proximity to multiple major economic hubs.
Just months later, Rockford was named the Realtor.com Hottest Market for January 2025 for the first time ever, dethroning perennial favorite Manchester, NH.
Notably, Manchester came out on top in the most recent WSJ/Realtor.com Housing Market Ranking.
The Rockford metro has much to offer prospective buyers, considering that it is home to several hospital systems, aerospace, and manufacturing companies. Still, Rockford’s unemployment rate stood at 6.3% as of June, significantly higher than the national average of 4.1%.
Nicknamed “Forest City,” Rockford boasts numerous parks and green spaces as well as multiple museums and attractions for the whole family.
Milena Cojkic, a real estate agent with Keller Williams Realty Signature in Rockford, tells Realtor.com that the city’s undisputed attraction is its affordability.
In 2024 alone, Cojkic says that she helped more than 30 families purchase homes and settle in Rockford.
“They wanted to move into Rockford specifically for the affordability and the fact that they had stay-at-home jobs and they were able to work wherever,” explains Cojkic.
According to the real estate pro, roughly 70% of her clients seeking homes in Rockford last year came from nearby Chicago, where many would-be buyers are feeling priced out.
“Right now I’m helping one client, and they’re coming from Chicago where they were renting, and they’re buying an affordable home in the city of Rockford,” says Cojkic.
Out of the 200 metros analyzed for the ranking, just 11—among them Rockford—saw home prices low enough that a household earning a median income could afford to buy in June 2025 if they wanted to keep housing costs below 30% of their income with a 20% down payment.
Midwest continues to dominate ranking
While Manchester claimed the No. 1 spot in the summer ranking, Midwestern housing markets continued to dominate the top 20 list due to the region’s housing affordability, low cost of living, and climate resiliency.
The latest list features three Ohio metros, three Wisconsin metros, two Michigan cities, two Indiana cities, and one Illinois market.
“With an average population of roughly 500,000, the popularity of these markets suggests that today’s buyers are looking to mid-sized metros to find value, both in terms of home prices and quality-of-life benefits,” says Realtor.com Senior Economic Research Analyst Hannah Jones.
The persistent popularity of Midwestern housing markets should come as no surprise, considering that basic necessities in the region cost on average about 8% less than the national level.
Zeroing in on housing costs in the Midwest, regional markets on the list had an average listing price of $344,000 in June, which was about $100,000 below the national price.
Among the popular Midwestern hubs, only homes in Ann Arbor, MI, and Green Bay, WI, had prices higher than the national median.
Contributing to the Midwest’s appeal is the region’s relative climate resilience. Compared to the South and the West, heartland metros like Rockford tend to have a lower risk of weather-related disasters such as floods and wildfires, driving up the demand among buyers looking to minimize unexpected home repair expenses.
The top 20 markets—11 of them clustered in the Midwest—saw an average of just 4.6% properties at risk of damage from climate-related disasters.