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These Hottest States in Real Estate Might Surprise You
June 20, 2022

These Hottest States in Real Estate Might Surprise You

by The CE Shop Team

New Hampshire and Connecticut are The Top Real Estate Markets in U.S. 

Since the pandemic, the interest in popular real estate markets like California, New York, and Florida have dwindled. With crazy high home prices and costs of living, Americans have shifted their needs to affordable real estate markets and forgiving living costs.  

Today, this shift has put many Americans interest in real estate markets to New Hampshire and Connecticut.  

New Hampshire and Connecticut had multiple markets that were ranked on the Realtor.com Top 20 Hottest Housing Markets

These uncommon markets distill into affordable homes that still provide a high quality of life. This interest is justified, home prices are up 20.7% over last year, and rising mortgage rates are now over 5.0% for a 30-year fixed-rate loan. 

“Affordability is the common thread running through the top states featured in May’s hottest housing markets list,” says George Ratiu, manager of economic research for Realtor.com. “With median home prices below the national mark, these states offer buyers significant value.” 

Unsurprisingly, the desire to live in these markets really comes down to money.  

These Hottest States in Real Estate Might Surprise You

Why is New Hampshire So Desirable?  

Beyond an affordable housing market, New Hampshire is one of the cheapest places to live in the U.S., thanks to their low taxes. Manchester, Concord, and Claremont were all in the top 20 markets according to Realtor.com.  

Most notably, Manchester is not only the top housing market in New Hampshire but in the entire country. 

“Adding to the more affordable cost of housing, living expenses are also lower in these [hottest] markets,” says Ratiu. “In addition, New Hampshire offers the added benefit of no state income or sales tax.” 

The average median sale price for a home in New Hampshire is $408,300, up 13.8% from last year. While this appears high, it’s competitive with other hot real estate markets, especially in the east coast.  

New Hampshire Housing Data
Source: Redfin

The price of a home in New Hampshire is not stopping buyer demand, and knowing the cost of living is lower than most states doesn’t hurt. Beyond the money, New Hampshire is ranked as the fourth-best state to live, according to U.S. News & World Report.  

Why is Connecticut so Desirable? 

Connecticut historically is not a popular state for homebuyers, but over the past year or so has quickly shot up in demand. Connecticut’s median sale price per home is $368,400, lower than New Hampshire, but the state ranks high in taxes. Hartford, Norwich, and New Haven were all ranked in the Realtor.com top 20 markets for 2022, and for good reason.  

Connecticut Housing Data
Source: Redfin

The market that surprised all experts was New Haven, jumping 162 spots this year to 18 in the top 20 rankings. New Haven’s average home price is $357,450, lower than the state’s average, and well below the nationwide average.  

“New Haven, CT, zoomed up Realtor.com’s hottest housing markets list over the past year owing to its relative proximity to large employment centers and more affordable housing prices,” says Ratiu. “New Haven is about halfway between Hartford and New York City, at the intersection of I-95 and I-91 highways, and on the Long Island Sound. In addition to a low unemployment rate, the city is also home to Yale University. For many buyers, an hour and a half commute into New York may be a bearable trade-off for more affordable housing.” 

Demand for homes in Connecticut is still high, forcing homebuyers to be competitive and decisive. The state is ranked 20th for the best states to live by U.S. News & World Report.  

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