This Illinois city has been named the hottest housing market in the country

An unassuming town outside of Chicago has surprisingly ranked as the nation’s hottest housing market.

Rockford, Illinois, has climbed to the top of the US housing market, overtaking cities that have dominated for years.

Realtor.com named Rockford the nation’s hottest housing market for December, dethroning longtime champion Manchester, New Hampshire, after a 31-time winning streak dating back to 2017.

Located just 90 minutes outside of Chicago, Rockford has become a magnet for home buyers looking for affordability and quick deals.

The median home price in Rockford hit $242,000 in December — well below the national average of $356,000, according to Zillow. Homes in this area are selling at lightning speed, averaging just 43 days on the market compared to the national average of 70 days.

“Rockford’s heat means high demand is met with low inventory as buyers claim available homes,” said Hannah Jones, senior economic analyst at Realtor.com.

Demand in Rockford has skyrocketed, with three times as many people looking at homes there compared to the national average. That increase pushed house prices up 21% in December from a year ago, while prices nationally fell 1.8%. Affordability is driving this boom.

“This affordable area has seen steady demand this year as mortgage rates and home prices keep buyers from looking in higher-priced areas,” Jones added.

Rockford’s appeal isn’t limited to bargain hunters.

The city offers solid job prospects in manufacturing and aerospace, as well as access to quality healthcare. Still, economic headwinds remain — Rockford’s unemployment rate stood at 8.1% in November, nearly double the national rate.

This increase coincides with a broader shift in the housing market. For the 15th consecutive month, every city on Realtor.com’s Hottest Markets list was in the Midwest or Northeast.

Zillow also predicts this trend will continue into 2025, naming Buffalo, New York, as the next market to watch, followed by Indianapolis, Providence, Hartford and Philadelphia. The nationwide housing market has slowed under the weight of high mortgage rates.

The average 30-year fixed mortgage rate was 6.91% last week, according to Freddie Mac. Financial expert Meredith Whitney has warned that rates need to fall below 6% to trigger market activity.