The Northeast is home to Zillow's most popular market for the second year running

Rhea-AI Summary

Manchester, New Hampshire topped Zillow's most popular cities list for 2024, leading a Northeast-dominated ranking as home shoppers prioritized affordability and exurban locations. The city saw a 7.3% home value increase to $415,000, while remaining more affordable than nearby Boston.

The top 10 markets featured mostly exurban communities, with Rockford, Illinois and Stamford, Connecticut completing the top three. Only one West Coast market, Sunnyvale, California, made the list. Other category winners included Toledo, Ohio (large cities), Elizabethtown, Pennsylvania (small towns), Milford, Connecticut (coastal), Portland, Maine (vacation), Pahrump, Nevada (retirement), and Normal, Illinois (college towns).

Positive

• Manchester, NH home values increased 7.3% year-over-year
• Strong buyer demand in exurban markets indicates market resilience
• Homes in popular markets like Elizabethtown sell quickly (within 5 days)

Negative

• Persistent high mortgage rates affecting buyer choices
• new listings in popular markets due to existing owners holding properties
• Affordability challenges continuing to influence market dynamics

Insights

Market Research Analyst

The shift in homebuyer preferences towards exurban locations marks a significant trend in real estate market dynamics. Manchester, NH leading Zillow's most popular cities with a 7.3% home value growth to $415,000 demonstrates the strong demand for markets offering affordability relative to major metros. The dominance of Northeast markets and Midwest cities in the rankings reflects a broader market rebalancing, driven by hybrid work arrangements and affordability constraints.

The data reveals compelling migration patterns, with buyers increasingly prioritizing smaller markets that offer lower living costs while maintaining proximity to major employment hubs. The rapid 5-day average time-to-contract in markets like Elizabethtown, PA indicates intense competition in these emerging hotspots. This trend could lead to sustained price appreciation in these secondary markets as demand continues to outpace supply.

Financial Analyst

The housing market's focus on affordability-driven locations represents a structural shift that impacts Zillow's platform engagement and potential revenue streams. The stark contrast between Sunnyvale's home prices and more affordable markets like Toledo (typical home value $121,000) illustrates the growing price sensitivity among homebuyers. This trend could accelerate listing activity and user engagement in previously overlooked markets.

For investors, this geographic diversification of housing demand presents opportunities in regional real estate markets and related sectors. The rapid turnover in popular markets suggests strong monetization potential for real estate platforms, though persistent inventory constraints may limit transaction volume growth. The data indicates a potential long-term shift in real estate market dynamics that could reshape investment strategies in residential real estate.

Exurban cities dominated Zillow's most-popular cities list in 2024, as affordability challenges linger

SEATTLE, Dec. 17, 2024 /PRNewswire/ -- This year, Zillow® shoppers could not get enough of Manchester, New Hampshire — Zillow's most popular city of 2024. Cities in the Northeast dominated Zillow's list of most popular markets for the second year running. The Midwest also made a strong showing, while only one West Coast market cracked the top 10 list after leading the way in 2021.

The majority of this year's most popular cities were exurbs — charming smaller towns situated beyond the suburbs yet within commuting distance of a major metropolitan area. These communities strike a balance between suburban amenities and being located just a hop, skip and a jump from the vibrant offerings and thriving job markets of large urban centers.

Zillow's top 10 most popular markets of 2024:

1. Manchester, New Hampshire
2. Rockford, Illinois
3. Stamford, Connecticut
4. Columbia, Maryland
5. Bridgeport, Connecticut
6. Allentown, Pennsylvania
7. Peoria, Illinois
8. New Haven, Connecticut
9. Waterbury, Connecticut
10. Sunnyvale, California

"In another year of higher mortgage rates, areas of affordability and opportunity were center stage in 2024," said Zillow Chief Economist Skylar Olsen. "With the rise of hybrid work models, more people are discovering hidden-gem cities they might have previously overlooked when daily commutes were the norm. Buyers are seeking out locations that offer the right mix of affordable living and lifestyle amenities. Adding to the price pressure, new listings can remain sparse in the hottest spots as existing owners continue to hold on and hold back."

To determine the most popular markets in 2024, Zillow analyzed housing metrics in cities across the U.S. that reflect consumer demand, including page-view traffic, home value growth and how quickly homes sell.

Most popular on Zillow overall: Manchester, New Hampshire
Manchester, the largest city in the state, has seen growing interest among home shoppers. That has contributed to typical home values jumping 7.3% over the past year, up to $415,000. Still, Manchester remains more affordable than nearby Boston.

Manchester has garnered particular attention from potential buyers outside of its metro area, suggesting a strong interest in relocating there.

Most popular large city: Toledo, Ohio
While affordability captivated many home shoppers on Zillow, Toledo stood out as the top choice among large cities in 2024. The typical home in Toledo is worth $121,000, making it an attractive option for buyers seeking affordability. From its proximity to Lake Erie to its thriving art scene, Toledo offers rich experiences.

Following Toledo, San Jose, California, and Wichita, Kansas, also garnered significant interest, securing their rankings as No. 2  and No. 3 respectively among the most popular large cities.

Most popular small town: Elizabethtown, Pennsylvania
Just south of Pennsylvania's state capital, and less than a two-hour drive west of Philadelphia, lies Elizabethtown — Zillow's most popular small town of 2024. With a population of 12,000, Elizabethtown features picturesque streets, local shops and parks, all of which are attracting the interest of Zillow shoppers. Home buyers looking to settle in Elizabethtown must act fast, as homes for sale there typically go under contract within just five days.

While Elizabethtown claimed the top ranking in this category, Midwest small-town hot spots were not far behind. Vermilion, Ohio; Roscoe, Illinois; and Twinsburg, Ohio, followed closely, showcasing the region's growing appeal.

Most popular coastal city: Milford, Connecticut
Milford emerged as the most popular coastal city among Zillow shoppers this year. With 17 miles of  coastline along Long Island Sound, the area has plenty of seaside attractions, including beaches, parks, boating and more.

Following Milford, West Haven, Connecticut, secured the second spot, while South Portland, Maine, claimed third. Rounding out the top five were Santa Cruz, California, and Barnstable, Massachusetts.

Most popular vacation town: Portland, Maine
Nestled on a peninsula that extends into Casco Bay, Portland secured its position as the top vacation city among Zillow shoppers. As the most populous city in Maine, its appeal is clear. Renowned for its art scene, architecture and seafood, Portland draws visitors in search of a coastal getaway.

The East Coast dominated the most popular vacation towns among Zillow shoppers this year. East Haven, Connecticut, and Newport, Rhode Island, edged out California cities Monterey and Santa Barbara for the second and third spots in Zillow's ranking.

Most popular retirement city: Pahrump, Nevada
Fifty miles outside of Las Vegas, Pahrump is this year's most popular retirement city. With a warm climate and more than one-third of its population ages 65 and older, Pahrump is an ideal community for retirees.

Pahrump bumped last year's top retirement city — Pinehurst, North Carolina — to the second spot on this year's list.

Most popular college town: Normal, Illinois
Normal is home to the Illinois State University Redbirds, and is now Zillow's most popular college town. Coming in at number two for the second year is Kent, Ohio, where Kent State University is located.

Trailing close behind were San Luis Obispo, California (where California Polytechnic State University is located); Charlottesville, Virginia (home to the University of Virginia); and La Crosse, Wisconsin (the site of the University of Wisconsin–La Crosse).

Most popular cities by geographic region
From coast to coast, here's a look at this year's top cities for capturing the attention of home shoppers in each region:

• Northeast: Manchester, New Hampshire
• West: Sunnyvale, California
• Midwest: Rockford, Illinois
• Southwest: Rio Rancho, New Mexico
• Southeast: Cary, North Carolina
• Mountain Region: Fort Collins, Colorado

Methodology and definitions
To determine the most popular city overall and most popular city by geographic region, Zillow analyzed cities with a population of at least 100,000 people, according to 2022 American Community Survey data.

Large cities were defined as having a population of at least 250,000 people, according to 2022 American Community Survey data.

Small towns were defined as having a population of no more than 20,000 people, according to 2022 American Community Survey data.

Coastal cities were defined as areas where more than half of listing descriptions on Zillow mentioned the beach, and excluded all cities that did not feature the word "beach" in at least 50 listings on Zillow. Zillow's analysis only considered cities having a population of at least 25,000 people, according to 2022 American Community Survey data.

Vacation towns were defined as areas where more than 33% of the housing units were designated for non-primary use, according to 2022 American Community Survey data. Zillow's analysis only considered cities having a population of at least 25,000 people, according to 2022 American Community Survey data. Cities qualifying as college towns based on this analysis were excluded given the potential overlap in housing units designated for non-primary use.

Retirement towns were defined as areas where at least 33% of the population is older than 65 and has no children or other relatives (other than a spouse) living in the home.

College towns were defined as cities with at least 20% of the population enrolled in higher education, according to 2022 American Community Survey data. Zillow's analysis only considered cities having a population of at least 25,000 people, according to 2022 American Community Survey data.

The most popular cities by geographic region are defined by the Northeast (CT, ME, MA, NH, NJ, NY, PA, RI, VT, DE, MD), West (WA, OR, CA, ID, NV, AK, HI), Midwest (IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI), Southwest (TX, OK, NM, AZ), Southeast (AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA, WV) and Mountain Region (MT, WY, UT, CO).

About Zillow Group: 
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2024 MFTB Holdco, Inc., a Zillow affiliate.

 

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SOURCE Zillow, Inc.

FAQ

What was Zillow's (ZG) most popular housing market in 2024?

Manchester, New Hampshire was Zillow's most popular housing market in 2024, with home values increasing 7.3% to $415,000.

How much did home values increase in Manchester, NH according to Zillow (ZG) in 2024?

According to Zillow's data, Manchester, New Hampshire saw home values increase by 7.3% to $415,000 in 2024.

Which regions dominated Zillow's (ZG) most popular markets list in 2024?

The Northeast region dominated Zillow's most popular markets list in 2024, followed by strong representation from the Midwest, while only one West Coast market made the top 10.

What was the only West Coast market in Zillow's (ZG) top 10 most popular cities for 2024?

Sunnyvale, California was the only West Coast market to make Zillow's top 10 most popular cities list in 2024.

What type of cities dominated Zillow's (ZG) most popular markets in 2024?

Exurban cities - smaller towns beyond suburbs but within commuting distance of major metropolitan areas - dominated Zillow's most popular markets in 2024.