The top housing market in the U.S. this spring season is a heartland hub where the typical home costs an impressive $200,000 less than the national median.
Toledo, OH, a city of 265,000 people situated on the western tip of Lake Erie, claimed the No. 1 spot in the latest Wall Street Journal/Realtor.com® Housing Market Ranking through a winning combination of strong demand, quick market pace, and impressive price growth compared with a year ago.
Although a midsized city, Toledo—located about 60 miles from Detroit—attracted outsized attention from homebuyers during the first three months of 2025, climbing two spots in the ranking from the previous quarter.
Almost two-thirds of online listing viewers in Toledo were from out of town, highlighting the appeal of this affordable metro, particularly among fellow Midwesterners. However, house hunters from New York City and Washington, DC, are also taking notice.
The typical home in Toledo cost $235,000 in March, nearly $200,000 lower than the national price—and that’s after a 17.5% year-over-year price increase.
Given Toledo’s robust demand and affordability, it’s not surprising that homes there were flying off the shelves. In March, the typical residential property in Toledo was purchased within 37 days, or more than two weeks faster than the national median.
Predictably, Toledo saw the sharpest increase in home sales profit margins so far this year, according to a new report from ATTOM Data Solutions, a curator of land, property data, and real estate analytics.
At the start of the new year, the median price of a home sold in Toledo was 44.7% more than the median purchase price for homes sold, up from 27.8% during the same period in 2024.
The resulting 16.9 percentage point gain was the largest in the country in the first quarter.
Toledo’s other major draw, which it shares with other Midwestern metros, is a lower risk of climate-related disasters compared with coastal areas.
A mere 1.5% of properties in Toledo are facing severe or extreme risk of one of the five risks considered—extreme heat, wind, air quality, flood, and wildfire—over the next 30 years.
Overall, the top 20 markets in the latest ranking saw an average of just 4.7% of properties at risk of climate-related damage.
Toledo’s economy primarily revolves around manufacturing, health care, and education. It also boasts a vibrant arts scene, anchored by the Toledo Museum of Art. But like any urban hub, Toledo is not without its challenges.
The unemployment rate in the city has climbed the past couple of years, reaching 6.6% in March—the highest rate across the top 20 metros in this quarter’s ranking.
“Unemployment climbed due to contraction in the professional and business services, information and manufacturing industries compared to last year,” says Realtor.com Chief Economist Danielle Hale. “Nevertheless, the relatively affordable cost of living and low housing costs could continue to attract homebuyers.”
The Wall Street Journal/Realtor.com Housing Market Ranking evaluates the 200 most populous metros, weighing real estate demand, housing inventory, median days on the market, median price trends, property taxes, climate risks, unemployment rate, wages, regional price parities, amenities, and other factors that affect the cost of living and quality of life.
The Midwest and parts of the Northeast dominate the rankings
Every one of the top 20 metros in the latest quarterly ranking is in either the Midwest or Northeast, continuing a trend driven by affordability, a low cost of living, and climate resiliency.
As in the past quarter, the Midwest emerged as the big winner, with 12 of the 20 cities on the list scattered across the region—five of them in Ohio.
Following Toledo, Manchester, NH, claimed the No. 2 spot in the ranking, with Rockford, IL, in third, Springfield, MA, in fourth, and Canton, OH—last quarter’s top market—settling into the fifth spot.
Four of the 12 Midwest cities on the new list had an unemployment rate below the national level of 4.2% in March, with Appleton, WI, boasting the lowest jobless rate among the top 20 metros, at 3.1%, followed by Green Bay, WI (3.3%), Milwaukee (3.8%), and Fort Wayne, IN (4.1%).
All four cities have strong labor markets and affordable costs of living, in part owing to the fact that essentials cost an average 7% less than the national level there.
Home prices follow the trend of lower costs in the Midwest. In March, Youngstown, OH, emerged as the metro with the lowest median list price of $185,000—a staggering $240,000 below the national price.
“These low home prices mean that the minimum recommended income to purchase in one of these markets was an average $68,000, compared to the U.S. minimum recommendation of $98,000,” says Hale.
New Haven ascends as Trenton loses ground
In the March rankings, New Haven, CT, ascended 34 spots since the past quarter, to No. 11, the biggest gain of any metro on the list.
Although New Haven is higher-priced than the national market, with the typical home there costing $460,000 in March, it still offers buyers relative affordability within commuting distance of New York City, about 80 miles to the southwest.
Youngston, OH, saw the second-biggest gain in rankings, jumping 16 places from the previous quarter to claim the No. 18 spot.
Meanwhile, Trenton, NJ, suffered the most dramatic reversal in a span of three months.
After climbing 16 spots to No. 12 during the winter, Trenton tumbled 12 places, crashing out of the top 20 and landing at No. 24 this quarter.
Columbus, OH, experienced a similar fate, having lost 13 spots since the past quarter, to end up in No. 28 this time around.
