Oshkosh tops US housing market rankings for first time

Oshkosh, WI, has been named the most desirable real estate market in the United States for the first time, according to Realtor.com's Hottest Housing Markets rankings for July. The city, which shares its name with a popular children’s clothing line, offers budget-friendly home prices and peaceful surroundings.

The median list price of homes in Oshkosh is $374,000, which is significantly lower than the national median by $65,950. Hannah Jones, senior economic research analyst at Realtor.com, attributes this ranking to the city’s affordability and idyllic setting on Lake Winnebago.

“Oshkosh offers buyers affordability in an idyllic setting,” says Jones. Realtor.com listings in Oshkosh received 3.7 times more views per property in July compared to the national average. Properties are typically sold within 18 days of listing—32 days faster than the national average.

Local real estate agents confirm that properties do not remain on the market for long. Kate Schlagel-Grier from Berkshire Hathaway HomeServices notes multiple offers and even bidding wars for homes in Oshkosh. Her colleague Chris Siamhof adds that buyers are employing various strategies to make their offers stand out, including waiving home inspections and offering appraisal gap coverage.

Many prospective buyers come from larger cities such as Milwaukee seeking more affordable living options. “Oshkosh is a very nice town with a much lower cost of living than Milwaukee or the Upper Valley,” says Schlagel-Grier.

Midwest real estate markets have generally seen increased interest as mortgage rates rose in 2022 while home prices remained high across much of the country. This trend has led many Midwest markets to climb Realtor.com's rankings over recent years.

Despite an improvement in listing levels by 24.2% year over year in Oshkosh for July, there were still 72.8% fewer homes available compared to pre-pandemic levels. "The gap between inventory and buyer demand sent Oshkosh to the top of this month’s list," explains Jones.

In addition to Oshkosh leading the pack, Hartford, CT ranked second and Manchester, NH third on July's list of hottest markets. Other notable entries include Rockford, IL at fourth place and Akron, OH at fifth place.

Wisconsin had three towns—Oshkosh (No. 1), Janesville (No. 9), and Green Bay (No. 18)—in July's top 20 hottest markets list due to its affordability and family-friendly environment.

Ohio also had three towns: Akron (No. 5), Canton (No. 11), and Cleveland (No. 20). Illinois saw Rockford (No.4), Springfield (No.12), and Peoria (No16) making it into the top ranks as well.

Overall housing prices have been stable nationwide due to high-interest rates; however, prices have risen sharply in hot markets like those listed above due to high demand and low supply.

Urban areas such as Las Vegas saw significant jumps in their rankings among large U.S metros despite some average price declines for large urban markets—a first-time occurrence indicating an adjustment by lowering home prices amid subdued buyer demand according to Jones’ analysis.