Driven by a slowing market pace, longtime leader Manchester, NH, dropped out of the top 20 real estate markets.
The Midwest and Northeast went toe to toe in September, with each region claiming 10 spots in the Realtor.com® August 2026 Hottest Housing Markets ranking, but one longtime frontrunner was notably absent from the top 20.
Manchester-Nashua, NH, once New England's go-to affordable alternative to Boston, has dipped sharply over the past two months, falling to 30th in August and 38th in September after ranking eighth in July.
This marks a dramatic reversal for New Hampshire's "Queen City," which has ranked No. 1 a staggering 35 times, most recently in March, the most of any metro in the Realtor.com data's history stretching back to 2017.
Overall, Manchester consistently made it into the top 20 from March 2020 through July 2026, except for July 2025, when it finished just outside the ranking in the 21st spot.
A market's hotness is determined by two criteria: the level of demand in a specific area as measured by unique views per property on Realtor.com, and the pace of the market as measured by the number of days a listing remains active online.
Realtor.com senior economist Hannah Jones explains that while Manchester's listings still attract 2.7 times the viewership as the typical U.S. home, where the metro fails is the days on the market.
"The typical Manchester home’s time on market extended to 48 days in September, roughly a week or longer than the nation's hottest markets, driving the metro’s drop down the list," notes Jones.
Affordability hurdles and buyer fatigue
Suzanne Damon, the founder and CEO of The Damon Home Team in Manchester, attributes the extended listing times to several key factors.
"Affordability is part of the picture. Manchester still offers value compared with Boston, but buyers have to make the monthly payment work," she tells Realtor.com.
In September, the median listing price in Manchester was $579,900, offering flexible buyers willing to commute 50 miles from Boston nearly $200,000 in savings. However, mortgage rates crossing the 7% thersehold for the first time in more than two years during the same period strained budgets.
Damon also cites buyer fatigue and hesitation after years of intense competition for properties.
"Repeated bidding wars, limited choices, and the fear of stretching too far can make buyers more cautious about moving forward," she says.
This ranch-style home in Manchester, NH, is priced at $565,000, lower than the metro's median. (Realtor.com) New Hampshire Housing’s September report highlights the affordability gap. Based on June's statewide median single-family sale price of $575,000, a household would require about $189,000 in annual income to buy. Only 15% of the state's households can meet that threshold.
Zooming in on metro-level metrics, NH Realtors’ August city report shows that Manchester had just 0.8 months of supply, underlining how limited home shoppers' choices remain.
"Low inventory doesn’t create buying power," points out Damon. "When the payment stretches beyond what buyers can carry, they have less room to meet a seller’s asking price."
However, Bob Quinn, CEO of the New Hampshire Association of Realtors, views Manchester's fall in the rankings as a net positive.
"More inventory and sales coupled with a slower rate of price appreciation mean more opportunities for buyers to find homes," Quinn tells Realtor.com. "That translates into more workers being able to move into the city, driving Manchester's diverse economy."
Buyers take charge
For buyers, the more leisurly market pace promises renewed bargaining power.
"When sellers were regularly getting over asking price, buyers often felt pressure to compete aggressively," says Damon. "What I’m seeing now is more room to bring inspections, repairs, closing-cost assistance, and rate buydowns back into the conversation."
For sellers, Manchester's gradually loosening market means they often have to make adjustments to get the deal across the finish line.
"I firmly believe there are three reasons a property doesn’t sell: marketing; condition, which includes location in my assessment; or price," says Damon. "It may be one of those factors or a combination of all three. A seller whose home isn’t selling needs to take an honest look at each area."
Motivated sellers are increasingly willing to make repairs or compromise on price to attract selective buyers.
"The goal is to identify what’s holding the sale back and make the adjustments that address it," adds Damon.
Midwest clinches gold
Returning to markets that did make the top 20 list in September, Kenosha, WI, secured the No. 1 spot for the first time since January after attracting three times the national average number of viewers per property.
Homes in Kenosha sold in just 32 days, roughly a month faster than the national norm, driven by shoppers seeking lower housing costs than in neighboring Chicago.
"Located between Chicago and Milwaukee, Kenosha is an ideal landing spot for homebuyers looking to take advantage of the lower tax burden in Wisconsin without giving up access to job opportunities in Chicago," says Jones.
Kenosha's ascendence is emblematic of a trend Jones describes as the rise of the affordable alternative metro, with buyers flocking to smaller regional hubs that offer a more budget-friendly path to homeownership compared to larger economic centers.
These metros sit within commuting distance of major job hubs, allowing residents to access high-wage employers while buying at prices well below their metropolitan counterparts.
Other entries on the list fit this pattern.
Located just 25 miles from Milwaukee and 60 miles from Chicago, Racine, WI, has a median list price that sits at a manageable $352,000.
Similarly, Janesville, WI, is within an hour’s drive of Madison, WI, offering a $85,000 price advantage over the state capital.
The Northeastern part of the top 20 list sees a similar dynamic, with Providence, RI, and Hartford, CT, offering $200,000 or more in savings to Boston or New York City transplants.