A New England metro located about an hour north of Boston has retained its title as the nation’s top affordable housing market for the second quarter in a row.
Manchester-Nashua, NH, once again clinched the No. 1 spot in the Fall 2025 Wall Street Journal/Realtor.com® Housing Market Ranking, owing to the metro’s strong demand, quick sales pace, and significant price growth compared with last year.
“Consistently among the nation’s hottest housing markets, Manchester–Nashua continues to balance desirability with relative value,” says Realtor.com senior economic research analyst Hannah Jones.
The quarterly ranking assesses the 200 most populous metros as measured by the U.S. Census Bureau, weighing real estate demand, housing inventory, median days on the market, median price trends, property taxes, climate risks, unemployment rate, wages, regional price parities, amenities, and other factors that affect the cost of living and quality of life.
The goal of the ranking is to help prospective homebuyers identify desirable markets to consider when purchasing a primary residence or investment property.
Boston’s more affordable neighbor
This fall saw the median listing price in Manchester decrease to $575,000 from $599,000 the previous quarter.
Despite the notable price reduction, the typical listing in Manchester was still $150,000 above the national median in September, making it the most expensive metro among the top 20 housing markets in the ranking.
However, it’s important to remember that in real estate everything is relative—and compared with top-dollar Boston, where the median price last month was $812,000, Manchester looks like a bargain, offering the typical house hunter $237,000 in savings.
“High-earning buyers seeking to stretch their dollars further continue to create cross-market housing demand in markets that are close to economic hubs,” says Jones.
It should come as no surprise that Manchester—a city of 430,000 people along the banks of the Merrimack River—has consistently ranked among the nation’s hottest housing markets drawing strong buyer interest.
Located just 55 miles from Boston, Manchester boasts a relatively low unemployment rate of 3.2%, compared with “Bean Town’s” 4.8%, according to the latest available data from the Bureau of Labor Statistics.
Susan Cole, the 2025 president of the New Hampshire Association of REALTORS®, tells Realtor.com that the Manchester-Nashua corridor “is an economic engine for the state.”
“The region benefits from its proximity to Boston while maintaining a lower cost of living, less crime, great schools, no sales or income tax, and generally a great way of life,” says Cole.
The New Hampshire hub has a diverse job market anchored by health care, technology, manufacturing and communication sectors. Major employers include Comcast, Southern New Hampshire University, and Elliot Hospital.
Manchester is also known for its vibrant art scene, with the Currier Museum of Art at its center, and an abundance of green spaces, from public parks to recreational trails ideal for those who love the outdoors.
“From your home in southern New Hampshire, within an hour you could be at Fenway Park to watch the Red Sox, skiing or hiking in the mountains, or spending a day on the seacoast,” says Cole. “And of course, the arts and restaurant scene in the area has exploded with many new options.”
Although housing inventory and affordability have remained a challenge, Cole stresses that southern New Hampshire is still a more affordable option than areas in closer proximity to Boston.
The fall housing market at a glance
Buyers looking to jump into the market this fall are encountering slightly better conditions compared with the summer, with mortgage interest rates decreasing to the mid- to low-6% range and inventory growing steadily, offering more options.
The rate easing drew more home shoppers to the market, leading to an uptick in new-home sales and pending home sales in August. This trend is expected to continue into late fall, provided that rates do not swing back up.
However, Jones says that despite these positive developments, buyer sentiment and activity remain sluggish because of persistent affordability issues and overall economic uncertainty punctuated by the ongoing federal government shutdown.
“Confidence remains fragile, with many households waiting for clearer signals on inflation, job stability, and interest rate trends before making major housing decisions,” notes the analyst.
The latest jobs figures released in September before the shutdown revealed that the labor market was cooling, with the economy adding just 22,000 jobs in August and the national unemployment rate ticking up to 4.3%.
These factors have prompted the Federal Reserve to cut its benchmark rate a quarter of a percentage point in September, with one to two additional reductions possibly coming before the end of the year.
“While mortgage rates don’t move in lockstep with Fed policy, lower short-term rates could help nudge borrowing costs down and modestly improve affordability,” says Jones.
In this unsettled economic environment, the housing market remains drastically divided: Lower-budget buyers are flocking to the nation’s most affordable metros, while their more affluent counterparts jockey for properties in more expensive, highly competitive markets.
Northeast and Midwest continue to dominate
The regional divides have deepened in the third quarter, with 19 of the 20 top markets being either in the Northeast or the Midwest. Only one Southern metro, Hagerstown, MD, made it onto the list at No. 10, and there were no entries from the West.
Besides top-rated Manchester, seven other Northeastern markets made the list, including Lancaster, PA, and Springfield, MA.
Although Northeastern markets are not known for their affordability, a scarcity of inventory in the region keeps them competitive and boosts demand.
On the other hand, the Midwest’s main selling points include the region’s relative affordability, low cost of living, and favorable climate resilience. That is why 12 of the top 20 markets in the third quarter are scattered around Midwestern states, among them Rockford, IL, South Bend, IN, and Canton, OH.
The region’s top-performing markets this fall are midsized and budget friendly, both in home prices and everyday expenses. Median home prices in the most high-ranked Midwest metros ranged from roughly $240,000 to $400,000, with only Green Bay, WI, exceeding the national median of $425,000.
On average, living costs in these markets are about 8.5% lower than the national level.
Additionally, the vast majority of the top 20 markets have unemployment rates below 5%, and a dozen of them below the national jobless rate of 4.3% recorded in August.
“Strong local job markets not only support purchasing power but also provide a sense of economic resilience, which is critical for both buyers and sellers navigating an uncertain broader outlook,” says Jones.
