Five of the top 10 “hottest” neighborhoods in the United States this year are located on the outskirts of Midwestern cities, according to a new report.
The findings, from the real estate brokerage Redfin, reveal that the region’s relative affordability is attracting homebuyers squeezed out of more expensive markets across the country.
Why It Matters
Skyrocketing home prices and stubbornly high mortgage rates have forced many homebuyers to the sidelines of the market in recent years. In February this year, pending sales at the national level were 3.6 percent lower than a year earlier, remaining near recent record lows, according to the National Association of Realtors.
Between 2020 and 2024, the typical monthly mortgage payment also climbed from $1,100 to $2,207, according to Bankrate.
Yet despite the unfavorable conditions, buyers are still gearing up for this year’s spring selling season, especially as mortgage rates are currently lower than they have been in months.
What To Know
Redfin’s findings reveal that five of the top 10 hottest neighborhoods for 2025 are located on the outskirts of Midwestern metros in Michigan, Illinois, Wisconsin, Kansas and Minnesota.
Expensive coastal cities are also in high demand, including three neighborhoods in New York and one in San Francisco.
Redfin said the trend reflects a growing demand for workers to return to the office following the COVID pandemic.
The brokerage’s top 10 list includes (change in home sales year-on-year; change in media views per listing year-on-year):
- Prospect Heights, New York (+105 percent YoY; +136 percent YoY)
- Jenison, Michigan (+11 percent YoY; +139 percent YoY)
- Campton Hills, Illinois (+38 percent YoY; +133 percent YoY)
- Fairport, New York (+48 percent YoY; +127 percent YoY)
- Polk Gulch, California (-6 percent YoY; +129 percent YoY)
- Great Kills, New York (+19 percent YoY; +121 percent YoY)
- Franklin, Wisconsin (+25 percent YoY; +129 percent YoY)
- Prairie Village, Kansas (-19 percent YoY; +132 percent YoY)
- Lakeville, Minnesota (-7 percent YoY; +116 percent YoY)
- Bowie, Maryland (+31 percent YoY; +140 percent YoY)
In all of these neighborhoods, homes are selling nearly a week faster than the national level, according to Redfin.
It added that a common theme among these neighborhoods is a lack of available homes for sale, with six of the top 10 recording a drop in active listings.
“That means more eyeballs on the homes that are listed, with every one of the hottest neighborhoods recording a 100%-plus increase in the median number of listing views on Redfin.com,” it said.
“In comparison, the number of homes on the market increased 10.7% nationally in February on a seasonally adjusted basis.”
Christine Kooiker, a Redfin Premier agent in Michigan, said that second-placed Jenison enjoys low taxes, affordable land, and is open to new development.
“The neighborhood has a small-town feel, with the typical Michigan friendliness, and people from big cities are moving here looking for that. And if they are missing the action, it’s only two and a half hours to Chicago or Detroit,” she said.
Ben Ambroch, a Redfin agent in Wisconsin, added that the neighborhood of Franklin is attracting buyers due to its substantial new construction.
“Many people are purchasing new builds because they can’t find a home for the right price closer to central Milwaukee,” he said. “One of the defining characteristics of homes in Franklin is really big lots – a perk for buyers who are tired of living on top of their neighbors.”
Redfin’s analysis ranked U.S. zip codes in the 150 most populous metro areas by year-on-year growth in listing views on its website and its Redfin Compete Score, which is a measure of how difficult it is to obtain a home in a particular area. The data was collected between January 1 and February 28, 2025, and compared against the same timeframe last year.
What People Are Saying
Ian Rubinstein, a principal agent for Redfin in New York, said in a statement: “Workers wanted to get out of the crowded city during the pandemic, so they bought or rented properties in upstate New York or elsewhere in the country. Many companies now require workers to be in the office at least two to three days a week—so people are coming back. In my opinion, Brooklyn has become even more popular than Manhattan.”
Daryl Fairweather, the chief economist at Redfin, said: “Midwest cities have risen in popularity because they’re more affordable than cities in other parts of the country, but many buyers are now widening their search to the suburbs after being priced out of popular urban areas. These neighborhoods are generally a 15-20 minute drive to the downtown of a metro—a reasonable commute for workers—and have easy access to shopping, sought-after schools and recreational pursuits.”
What’s Next
During the pandemic, some of the most affordable housing markets in the U.S. quickly became the most overheated, leading to overvaluation. These are the markets that are now cooling down the quickest—including in Florida and Texas—due to reduced demand and a higher inventory.
However, the Midwest is unlikely to face a similar fate, as the region has not been building as many homes as in the South or the West.
In the Northeast and Midwest, a shortage of homes is keeping prices and demand high, even in the face of an affordability crisis.
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