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Zillow’s annual list of America’s hottest real estate markets has been heavy on surprises lately. Going into 2024, Buffalo, New York surprised everyone by taking the number one position. However, Manchester, New Hampshire, a city with neighborhoods straight out of a Norman Rockwell painting, has been 2024’s most popular market. Despite Manchester’s popularity, you can still buy here for half of what it costs in nearby Boston.
America’s Northeast is famous for its lush forests, gorgeous Winters and mild summers. However, people born and raised in this part of New England know it offers so much more. Despite being within easy driving distance of Boston, the pace of life in Manchester is much less frenetic and the family-oriented vibe is unmistakable. Manchester’s small-town feel is genuine mostly because it’s a small town.
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The population is listed at only 115,000 and until recently, Manchester residents had this city all to themselves. That’s beginning to change mainly because the price of real estate in Boston is exploding much faster than the wages for area workers. Initially, this run-up in property values was confined to suburbs in the Boston Metro area such as Waltham, Lexington and Newton.
Now that Boston’s average home price (according to Zillow) has hit $750,000, prospective buyers looking for more affordable alternatives have discovered Manchester. Home prices here have steadily been climbing and Zillow analyst Treh Manhertz estimates the average home in Manchester will set you back $415,000. Manhertz says that is up 7.3% from last year but still just over half of what you’d pay in Boston.
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Financing $300,000 less to buy a comparable home in Manchester will save buyers approximately $18,000 per year and $540,000 over the life of a 30-year mortgage. It’s worth noting that isn’t where the money-saving ends for Manchester residents. In addition to being one of the few states with no income tax, New Hampshire has no sales tax.
By contrast, Massachusetts has a 5% income tax rate and levies an additional 4% on incomes over $1,000,000. While the 4% wealth tax is not an issue for most people, workers earning $100,000 per year can knock $5,000 off their tax bill by simply moving to New Hampshire. More importantly, a $100,000 annual income puts them closer to buying a home in Manchester than they’ll ever be in Boston.
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Data from the Mortgage Research Center shows buyers must earn an average salary of $108,000 to afford a $400,000 mortgage. The U.S. Census reports that the median household income in Boston is $96,931. Considering those two data points, Manchester’s real estate market catching fire makes perfect sense. It’s just over a one-hour train ride from Manchester to Boston and buyers get so much more for their money in New Hampshire.
It’s worth noting that the second hottest city on Zillow’s top 10 list is tiny Rockford, Illinois, where you can buy a home for as little as $157,000. This follows a trend from last year when cities like Buffalo, New York, Columbus, Ohio and Indianapolis, Indiana, made the top 10 list. Home prices below the national average are what all those cities have in common. American homebuyers are still voting with their wallets.
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This article This Idyllic New England City Is America’s Hottest Real Estate Market – And Homes Are Available For $415k – Half The Price Of Nearby Boston originally appeared on Benzinga.com