Homebuyer Hotspots: Cities with the Hottest Real Estate Markets in 2021

Home with For Sale sign in front yard

Demand for homes has grown considerably throughout 2020 and shows no sign of stopping in 2021. Some cities in particular are seeing unprecedented levels of interest in real estate.  

Aside from a few fluctuations, the housing market has remained resilient throughout the pandemic. In fact, homes across the country have been selling at healthy rates over the past year and into 2021. As for this year, experts predict that the housing market will maintain a stable growth rate, with housing shortages in some areas even resolving themselves. 

There certainly hasn’t been stable growth across the board, however. Some cities have garnered significant interest from homebuyers recently, particularly in the Midwestern and Western regions of the United States. As a result, homes are practically flying off the market in these areas. It’s no understatement to say that real estate in these cities is a hot commodity, with the average home lasting less than two months on the market before being sold. 

To further understand which cities are the most popular among homebuyers this year, the data science team at Insurify referred to national real estate data and identified the cities with the hottest home markets in 2021. 

 

heat map of cities with the hottest real estate markets. The top 20 cities with the highest demand relative to supply were selected.

Insights

  • National averages. As of January 2021, the median listing price of a home in the United States was $346,162. This is 15.37 percent higher than in January 2020, when the median listing price of a home was only $300,045. The average home in the United States lasts a little over two months, 76 days, on the market before being sold. This represents an 11.11 percent decrease since January 2020, when the average home spent 85 days on the market.
  • Homes in these in-demand cities are practically flying off the market. Compared to the 76 days the average American home stays on the market before being sold, homes in the top twenty cities remain on the market for a span of only 43 days, on average. That’s a whopping 44 percent less time than the national average. 
  • The hottest housing markets are not the most affordable, but they’re also not the most expensive. Despite the fact that millions of Americans have struggled financially over the past year, affordability does not seem to be an overwhelming priority for homebuyers in the top twenty cities with the hottest home markets, whose median listing price is actually 2.13 percent higher than the national average.

 

Methodology

The data scientists at Insurify, a site to compare homeowners insurance quotes, referred to housing market data from Realtor.com to determine the cities with the hottest home markets. Specifically, they evaluated cities based on Realtor.com’s Market Hotness Index, which scores each city based on days on market and Realtor.com views per property. Cities received a Market Hotness Score from 1 to 100. Cities whose homes had fewer days on the market and higher views per property, indicative of higher demand, received a higher Market Hotness Score. On the other hand, cities whose homes had more days on the market and fewer views per property, indicative of a lower demand received a lower Market Hotness Score.

Realtor.com compiles monthly data on these measures. In order to account for fluctuations month to month, the data scientists at Insurify took the average Market Hotness Score for each city over the past three months, then used these to identify the top 20 cities with the hottest home markets.  Median home price data, median days on market, and year over year percent change for both were gathered from Realtor.com. 

In this study, cities were defined based on the United States Census Bureau’s classification of an “urbanized area,” an urban area with a population over 50,000.

20 Cities with the Hottest Home Markets in 2021

20. Visalia-Porterville, California

  • Home market hotness score: 84.8
  • Median home listing price: $332,525 (2.2% below the national average)
  • Median days on market: 49 (35.5% below the national average)

19. Akron, Ohio

  • Home market hotness score: 85.2
  • Median home listing price: $159,750 (53.0% lower than the national average)
  • Median days on market: 48 (36.8% lower than the national average)

18. Spokane, Washington

  • Home market hotness score: 85.8
  • Median home listing price: $367,050 (7.9% higher than the national average)
  • Median days on market: 46 (39.5% lower than the national average)

17. Coeur d’Alene, Idaho

  • Home market hotness score: 86.0
  • Median home listing price: $725,050 (113.2% higher than the national average)
  • Median days on market: 53 (30.3% lower than the national average)

16. Columbus, Ohio

  • Home market hotness score: 88.4
  • Median home listing price: $306,250 (9.9% lower than the national average)
  • Median days on market: 47 (38.2% lower than the national average)

15. Sacramento-Roseville-Arden-Arcade, California

  • Home market hotness score: 89.1
  • Median home listing price: $549,050 (61.5% higher than the national average)
  • Median days on market: 39 (48.7% lower than the national average)

14. Fresno, California

  • Home market hotness score: 89.8
  • Median home listing price: $337,050 (0.9% lower than the national average)
  • Median days on market: 37 (51.3% lower than the national average)

13. Springfield, Ohio

  • Home market hotness score: 89.9
  • Median home listing price: $139,950 (58.9% lower than the national average)
  • Median days on market: 49 (35.5% lower than the national average)

12. Janesville-Beloit, Wisconsin

  • Home market hotness score: 90.0
  • Median home listing price: $219,500 (35.5% lower than the national average)
  • Median days on market: 49 (35.5% lower than the national average)

11. Manchester-Nashua, New Hampshire

  • Home market hotness score: 90.3
  • Median home listing price: $397,950 (17.0% higher than the national average)
  • Median days on market: 49 (35.5% lower than the national average)

10. Pueblo, Colorado

  • Home market hotness score: 90.5
  • Median home listing price: $299,950 (11.8% lower than the national average)
  • Median days on market: 40 (47.4% lower than the national average)

9. Modesto, California

  • Home market hotness score: 91.0
  • Median home listing price: $439,999.5 (29.4% higher than the national average)
  • Median days on market: 40 (47.4% lower than the national average)

8. Rapid City, South Dakota

  • Home market hotness score: 91.6
  • Median home listing price: $314,500 (7.5% lower than the national average)
  • Median days on market: 37 (51.3% lower than the national average)

7. Lafayette-West Lafayette, Indiana

  • Home market hotness score: 91.9
  • Median home listing price: $269,050 (20.9% lower than the national average)
  • Median days on market: 46 (39.5% lower than the national average)

6. Topeka, Kansas

  • Home market hotness score: 92.6
  • Median home listing price: $147,550 (56.6% lower than the national average)
  • Median days on market: 36 (52.6% lower than the national average)

5. Stockton-Lodi, California

  • Home market hotness score: 94.0
  • Median home listing price: $467,525 (37.5% higher than the national average)
  • Median days on market: 41 (46.1% lower than the national average)

4. Colorado Springs, Colorado

  • Home market hotness score: 95.1
  • Median home listing price: $470,322 (38.3% higher than the national average)
  • Median days on market: 39 (48.7% lower than the national average)

3. Fort Wayne, Indiana

  • Home market hotness score: 95.3
  • Median home listing price: $219,420 (35.5% lower than the national average)
  • Median days on market: 39 (48.7% lower than the national average)

2. Burlington, North Carolina

  • Home market hotness score: 96.3
  • Median home listing price: $286,800 (15.7% lower than the national average)
  • Median days on market: 40 (47.4% lower than the national average)

1. Vallejo-Fairfield, California

  • Home market hotness score: 96.9
  • Median home listing price: $496,750 (46.1% higher than the national average)
  • Median days on market: 32 (57.9% lower than the national average)

 

If you have any questions or comments about this article or would like to request the data, please contact insights@insurify.com.

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