This In-Demand Midwestern City Is Now the Hottest Housing Market in the U.S.

As 2025 drew to a close, Wisconsin's affordable housing markets saw a surge in homebuyer demand, propelling a midsized metro in Milwaukee's suburbs to the top of the hottest markets ranking.

Kenosha, WI, experienced a surge of interest by the end of the year, with for-sale homes flying off the market at a pace outstripping much of the U.S. 

As a result, Kenosha claimed the No. 1 spot in December 2025's Hottest Housing Markets list from Realtor.com®. It dethroned Springfield, MA, which came in second after reigning supreme for much of last year. 

Realtor.com researchers measure market hotness based on the level of buyer demand, tracked through unique views per property on Realtor.com, and the pace of the market, measured by the number of days a listing remains active online.

In December, Kenosha attracted more than three times the national average number of online views per listing, and the typical for-sale property spent just 44 days on the market—roughly a month less than the national norm.

"With a median listing price of $384,000, the metro's relative affordability has broadened its appeal, drawing interest from both local buyers and shoppers from nearby Chicago, where affordability pressures remain more pronounced," says Realtor.com senior economist Jake Krimmel.

Kenosha’s surge in popularity should come as no surprise: The city of roughly 100,000 inhabitants situated on the shores of Lake Michigan has appeared on the Top 20 Hottest Housing Markets lists in 10 of the first 11 months of 2025.

Kenosha offers no shortage of advantages for residents, chief among them its convenient location, which is less than an hour away from two major job markets.

“We are sometimes referred to as 'Chiwaukee,' because we are kind of basically right in between two large cities, being Milwaukee, WI, and Chicago, IL," says Wendy Gauss, real estate agent and president of the Southshore Realtors Association that governs the Kenosha/Racine region. "I think that that's what's drawing a lot of people into our areas."

While significantly smaller than its sprawling urban neighbors, Kenosha and nearby Racine, WI, are home to several prosperous businesses, including the multibillion-dollar shipping and packing company Uline and the U.S. headquarters of the international electronics manufacturing giant Foxconn.

"We have a lot of really big corporations moving into the area, and that's why we have so much growth going on," Gauss tells Realtor.com. She notes that, however, Kenosha's expansion has been "controlled," with the city striving to maintain what she describes as its "small-city feel."

Living in Kenosha, just 10 minutes from the Illinois border, has financial benefits in addition to its access to employers and well-paying jobs.

"We have a lot of people that commute, so they live in Wisconsin because Wisconsin's taxes are cheaper or cost of living is cheaper, but they work in Illinois because the pay rate in Illinois is higher," explains Gauss.

Kenosha also boasts a picturesque waterfront lined with beaches, parks, and trails, as well as a revitalized downtown filled with locally owned shops, restaurants, and breweries. Combined with its relaxed lifestyle, Kenosha is well-suited for families and retirees alike.  

In late December, a Realtor.com report on the nation's fastest-moving markets ranked Kenosha among the top five metros, with homes selling at roughly half the national pace.

Kenosha tied San Jose, CA, for second place, posting a median of 33 days on the market in 2025, trailing Lancaster, PA; hottest market runner-up Springfield, MA; and Reading, PA, which shared the top spot at 32 days. 

One of the main reasons for this trend, according to Gauss, is that the city—like many markets in the Midwest and Northeast—is facing a housing shortage.

"We need more houses. We need to build more," she says. Limited supply has pushed home prices higher and forced some residents to delay buying.

The Midwest continues to dominate the ranking

As in months past, the Midwest and Northeast continued to be the only two regions represented on the Hottest Housing Markets list thanks to those areas' relatively tight inventories and increased demand. 

Of the 20 hottest markets, 11 were concentrated in the Midwest, including seven in Wisconsin—the most of any state—three in Illinois, and one in Ohio. 

The Midwest entries averaged approximately 2.6 times the national level of listing views, and homes were sold three to four weeks faster than the typical U.S. listing. 

"Northeast markets, while fewer in number, continued to post especially high viewer intensity, reflecting ongoing inventory constraints and spillover demand from higher-priced coastal metros," says Krimmel.

Springfield, MA—November’s hottest market—claimed the No. 2 spot, with a median listing price of $344,000. The typical for-sale home there drew 2.9 times more views than the U.S. average and sold in just 45 days.

Other Northeastern markets that made it into December’s top five included Manchester, NH, in third place, and Hartford, CT, in fifth.

The growing popularity of affordable Midwestern markets has been something of a double-edged sword: The intensifying demand has begun putting upward pressure on local prices, with the hottest metros seeing significant year-over-year appreciation outpacing their Northeastern counterparts. 

Krimmel says buyers looking to purchase homes in some of the nation’s most sought-after destinations this year should be prepared to act quickly amid growing competition. 

"Looking ahead to 2026, easing mortgage rates could support renewed buyer activity, but persistent inventory constraints, particularly in the Midwest and Northeast, are likely to keep competition elevated in the most affordable, high-demand markets," warns the economist. 

New York City leads the most improved large markets

Although the nation's 40 largest metros cooled on buyer demand, a handful of major markets, led by New York City, saw their hotness ranking surge.

The top-dollar East Coast hub climbed 52 spots year over year, ranking 156th in December 2025. 

The typical home in the Big Apple waited for a buyer 71 days last month, which was three days faster than the national median.

Other major markets that saw their positions improve included San Francisco, which jumped 47 spots compared to December 2024, followed by Pittsburgh, which climbed 40 spots. Kansas City, MO, and Jacksonville, FL, rounded out the most improved list with 37 and 23 spot jumps, respectively. 

Krimmel says these shifts signal renewed interest in established job centers as home prices adjust. 

"Price trends in large metros reflected softer conditions, with average listing prices down 0.9% year over year, suggesting sellers are recalibrating expectations amid cooling demand," notes the economist.