Located about 90 miles northwest of Chicago, Rockford is technically the fifth-largest city in Illinois. But according to Realtor.com, it’s the hottest housing market in the nation.
Rockford topped the home search site’s monthly list in December, edging out previous No. 1 Manchester, New Hampshire, which has claimed the spot 31 times over the past eight years.
But how?
Realtor.com determines “hotness” according to two metrics: market demand, as measured by unique site views per property, and market pace, as measured by the number of days a listing remains active.
As 2024 came to a close, that combination worked in Rockford’s favor. During December, homes moved fast in Rockford, spending just 43 days on the market as opposed to the national median of 70.
Accordingly, buyer interest was high. Rockford listings attracted nearly three times as many viewers on Realtor.com.
“Rockford’s hotness means that high demand is met with low inventory as buyers claim available homes,” Realtor.com Senior Economic Analyst Hannah Jones wrote in the report. “This affordable area has seen sustained demand this year as mortgage rates and home prices deter buyers from searching in higher-priced areas.”
Homes in Rockford spent just 43 days on the market, compared to the national average of 70, during Realtor.com’s period of study. They were also strikingly affordable, listed for a median of $242,000; the national median was $424,900.
In general, Jones said, “The Midwest and Northeast have reigned supreme as homes to most of the country’s hottest markets since mid-2022 when mortgage rates picked up steam.”
However, she noted, the lack of “geographic diversity” on the list highlights the “relative stagnation” of America’s housing market as a whole. The end of 2024 marked the second straight year of the lowest sales volume since 1995.
The full list of December’s top 10 hottest markets includes:
1. Rockford, Illinois
2. Manchester-Nashua, New Hampshire
3. Hartford-West Hartford-East Hartford, Connecticut
4. Lancaster, Pennsylvania
5. Reading, Pennsylvania
6. Worcester, Massachusetts
7. Springfield, Massachusetts
8. Providence-Warwick, Rhode Island
9. Racine, Wisconsin
10. Oshkosh-Neenah, Wisconsin
The full list is available here.