Manchester-Nashua Maintains Status as Top Affordable Housing Market
The New England region, particularly Manchester-Nashua in New Hampshire, has secured its position as the nation’s leading affordable housing market for the second consecutive quarter, as noted in the latest rankings.
Once again, Manchester-Nashua has claimed the top spot in the Fall 2025 Wall Street Journal/Realtor.com® Housing Market Rankings. This recognition is attributed to strong demand within the metro area, a brisk sales pace, and notable price increases compared to the previous year.
“Manchester-Nashua has consistently emerged as one of the hottest housing markets nationwide, managing to balance its popularity with relative value,” commented Hannah Jones, a senior economic research analyst at Realtor.com.
This ranking assesses the 200 most populous metropolitan areas, considering various factors such as real estate demand, housing inventory, median market days, price trends, property taxes, climate risk, and local economic indicators.
The goal of this ranking is to guide potential homebuyers in identifying appealing markets for purchasing a primary home or investment property.
Bargain Prices Near Boston
This autumn, the median listing price in Manchester decreased to $575,000, down from $599,000 in the previous quarter.
Even with these reduced prices, the typical property in Manchester remains about $150,000 above the national median price reported in September, marking it as the priciest metro among the top 20 housing markets. Yet, relative to Boston’s staggering median of $812,000, Manchester appears to be a more attractive option, perhaps saving buyers around $237,000.
“Higher-income buyers are continuing to seek properties near economic hubs, enhancing demand in such markets,” added Jones.
Manchester, with a population of about 430,000, is frequently recognized for its appeal, being just 85 miles from Boston, combined with a relatively low unemployment rate of 3.2%, in comparison to Boston’s 4.8%.
Susan Cole, the 2025 President of the New Hampshire Association of REALTORS®, describes the Manchester-Nashua corridor as “an economic engine for the state.”
“This area benefits from its proximity to Boston while maintaining a low cost of living, low crime rates, excellent schools, and no sales or income taxes,” Cole noted.
The job market in central New Hampshire is diverse, heavily leaning towards healthcare, technology, manufacturing, and communications, with major employers like Comcast and Southern New Hampshire University.
Manchester is also celebrated for its vibrant arts scene and open green spaces, which cater to outdoor enthusiasts.
Cole expressed, “From my home in southern New Hampshire, I can reach Fenway Park in an hour. I can enjoy skiing or hiking in the mountains, or spend a day at the coast. Plus, the region’s arts and restaurant scene is expanding dramatically.”
While challenges with housing inventory and affordability persist, Cole insists that southern New Hampshire remains a more budget-friendly choice than areas close to Boston.
Autumn Housing Market Insights
This fall, buyers are experiencing slightly more favorable conditions compared to the summer, as mortgage rates have dipped into the mid-to-low 6% range and inventory levels have gradually risen, providing a broader selection.
This easing of interest rates has drawn more homebuyers back into the market, resulting in heightened sales activity. If rates don’t climb again, this trend could continue into late fall.
However, Jones points out that overall buyer sentiment is still quite cautious, largely due to ongoing affordability concerns and economic uncertainty, especially influenced by the current federal government shutdown.
“Confidence remains fragile; many households are waiting for clearer indications regarding inflation and job stability before making major housing decisions,” analysts highlighted.
The most recent employment data indicated a cooling labor market, with job growth stagnating and the national unemployment rate climbing to 4.3%.
In light of the Federal Reserve’s plans to lower benchmark interest rates, lenders may see some relief in borrowing costs, although mortgage rates do not always align directly with Fed policy.
The housing market remains divided; budget-conscious buyers are flocking to more affordable metros, while wealthier buyers are competing for properties in pricier areas.
Regional Trends: Northeast and Midwest Lead
Disparities between regions intensified in the third quarter, with 19 of the top 20 markets predominantly found in the Northeast or Midwest. Only Hagerstown, Maryland, from the South, ranked 10th.
Besides Manchester, other Northeast cities such as Lancaster, Pennsylvania, and Springfield, Massachusetts, also made the list. Despite the Northeast not being renowned for affordability, its limited inventory keeps the competition fierce and demand high.
On the other hand, the Midwest appeals to buyers due to its relative affordability, low cost of living, and good resilience to climate change. A total of 12 Midwestern cities were included in the top 20 markets for the third quarter.
This fall, the best performers in the Midwest tend to be midsize cities, which are more affordable regarding both home prices and daily expenses. Median home prices there range from approximately $240,000 to $400,000, with only Green Bay, Wisconsin, surpassing the national median of $425,000.
In general, the cost of living in these regions is around 8.5% lower than the national average, and most markets report unemployment rates below 5%, significantly below the national unemployment figure of 4.3%.
Jones emphasized the importance of a robust local job market for supporting purchasing power and providing economic resilience, which is vital for both buyers and sellers, especially in these uncertain times.
