Tax-Free New Hampshire City Makes a Comeback as Hottest U.S. Housing Market

After a nearly yearlong hiatus, an in-demand and relatively affordable New England metro has reclaimed the title of the nation's hottest housing market. 

Manchester-Nashua, NH, vaulted to the top of the Realtor.com® Hottest Housing Markets ranking in February, marking the metro's return to the No. 1 spot for the first time since April 2025. 

A market's hotness is determined by the level of demand in a specific area, as measured by unique views per property on Realtor.com, combined with the pace of the market as measured by the number of days a listing remains active online. 

Last month, the New Hampshire market attracted almost 3.5 times the national average number of viewers per property, reflecting Manchester's growing popularity among buyers.

This intense demand has translated into an accelerated sales pace, with the typical listing in Manchester finding a buyer within just 36 days, more than a month faster than the national median. 

With a median listing price of $550,000 in February, down roughly 5% from a year ago, Manchester was the second-most expensive market among the 10 hottest metros, trailing only Bridgeport, CT. However, homes in the New Hampshire hub were still a bargain compared to Boston, where the median asking price was $799,999 last month.

In other words, a homebuyer from Boston could save nearly $250,000 purchasing a home in Manchester.

Manchester's appeal as a budget-friendly market, coupled with its tight inventory, has kept the metro in the top 20 since March 2020. It finished in the No. 4 spot in January.

"Starting in March of 2025, inventory started to recover rather significantly, taking some pressure off of the market through the spring, summer, and fall," says Realtor.com senior economic research analyst Hannah Jones. "However, as this year's market heats up, inventory growth has cooled, leading to strong demand and buyer competition once again."

Granite State hub's comeback

Manchester promises home shoppers many advantages, beginning with the fact that the Granite State is a tax haven with no state sales or income tax, and more recently, no tax on interest and dividends, allowing residents to keep a larger share of their earnings. 

Beyond the financial benefits, Manchester has a more laid-back lifestyle compared to Boston, located just 55 miles away.

"For buyers who commute a few days a week, Manchester offers a noticeable lifestyle upgrade at a lower price point," Suzanne Damon, founder and CEO of The Damon Home Team real estate agency, tells Realtor.com.

Based on her day-to-day work with clients, Damon says that the biggest demand driver for Manchester buyers has been life-stage transitions.

"Many of my buyers are move-up homeowners who have built substantial equity over the past several years and are now ready for a larger home, a better location, or simply something that fits their next chapter," she says. "At the same time, I’m working with quite a few downsizers and empty nesters who love the area and want to stay close to family, health care, and the community they’ve built here."

A city of 116,000 inhabitants, Manchester has a robust local economy anchored in health care, financial, and manufacturing employers, among them Elliot Health System and Fidelity Investments.

This dynamic provides stability and confidence for buyers making long-term decisions, Damon says.

"Even with mortgage rates in the mid-6% range, I’m seeing buyers reenter the market after doing the math and realizing that waiting isn’t necessarily improving their position," says the real estate professional.  

The metro also boasts good schools, a vibrant downtown with high-quality restaurants and shops, as well as fascinating sights and historic landmarks like the Currier Museum of Art and the Frank Lloyd Wright-designed Zimmerman House. Additionally, the city offers easy access to the White Mountains, the Lakes Region, and the Seacoast Region.

"For many buyers, it feels like a place where you can build a life—not just buy a house," says Damon.

However, Manchester's surging popularity among house hunters has been a double-edged sword.

"The Manchester metro is still operating with roughly 1.1 months of housing supply, which keeps us firmly in a seller’s market," points out Damon. "That said, inventory is slowly improving compared to last year. We are seeing more homes come on the market than we did in 2024, which has taken some of the intensity out of the extreme bidding wars we experienced earlier."

According to Jones, Manchester-Nashua's inventory climbed an average of 29.4% year over year in 2025. However, as of last month, despite 23% annual inventory growth, there were still roughly half the number of homes for sale than before the COVID-19 pandemic.

"This means that Manchester-Nashua continues to feel the pressure of low inventory, and conditions could intensify through the buying season if active listing growth fails to keep up," warns the analyst.

Wisconsin markets dominate the top 10

Once again, the Midwest and Northeast swept the February rankings, claiming every spot on the list.

Wisconsin stood out as an especially sought-after destination, with seven metros on the list—six of them boasting below-median listing prices. 

Although more expensive than their Midwestern counterparts, Northeastern markets had a strong showing in February, confirming that elevated prices have not diminished demand where supply remains tight.  

"Despite their high price point, these markets fall middle of the pack in terms of days on market, supported by limited inventory and steady interest from both local and relocating buyers," says Jones.

Jones notes that buyers targeting hot markets in the Midwest and Northeast this spring should be prepared to move quickly and be ready to compete with both local demand and shoppers from pricier neighboring metros. 

For example, in top-ranked Manchester, Damon says buyers have to be pre-approved and ready to put in an offer if the right property comes along.

Well-priced homes tend to move quickly, she explains.

For sellers in the hottest markets, limited supply remains a major advantage boosting price growth and sales pace, but it varies significantly by market. 

Looking at the overall housing market, February’s rankings highlight how affordable "refuge markets" with low inventories have remained competitive, while larger, more supply-rich hubs have seen demand cool.