Kansas' capital is the top emerging housing market in the US
Topeka, Kansas, was ranked the top emerging market for the 1st time
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The No. 1 emerging housing market in America is in the Midwest.
Topeka, Kansas, ranked the highest among the top 20 emerging markets and is expected to do relatively well amid the tumultuous housing market compared to the rest of the country, according to the WSJ/Realtor.com Fall 2023 Emerging Housing Markets Index.
The index analyzes key housing market data, economic vitality and lifestyle metrics in order to determine which markets offer the highest quality of life, and where homes are expected to see future price appreciation.
Topeka, along with the rest of the markets on the list, is also poised to fare relatively better with sales in the midst of what is on track to become the slowest year for home buying since the housing bubble burst in 2008.
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The markets that made the top 20 list for this fall had three common factors: a lower-cost living, strong employment and convenient commutes.
In August, home prices climbed annually as buyers competed for scarce inventory. However, the majority of the emerging markets, 15 of the 20, had relatively lower prices than the national median of $430,000 in September.
The Kansas State Capitol in Topeka, Kansas. (Joe Sohm/Visions of America/Universal Images Group via Getty Images / Getty Images)
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For one, a typical home for sale in Topeka was listed for $250,000 in September, down 42% from the national median.
Homes within Kansas' capital, which is home to several large employers, were also down more than 40% compared to nearby Kansas City, according to the index.
Even though prices in the Topeka are relatively affordable, the median listing price was still more than $100,000 higher than its 2019 level in September, due to buyer competition.
The Kansas capital building is seen in Topeka on Nov. 8, 2022. (Michael B. Thomas/Getty Images / Getty Images)
Just last month, prices rose 8.7% compared to a year earlier as demand kept upward pressure on prices.
Here are the top 10 emerging markets for fall 2023:
1. Topeka, Kansas
2. Elkhart-Goshen, Indiana
3. Oshkosh-Neenah, Wisconsin
4. Fort Wayne, Indiana
5. Lafayette-West Lafayette, Indiana
6. Racine, Wisconsin
7. Manchester-Nashua, New Hampshire
8. Concord, New Hampshire
9. Columbus, Ohio
10. Johnson City, Tennessee