This midwestern city has the hottest real estate market in U.S.

Oshkosh, Wisconsin, the home of popular children's brand OshKosh B'Gosh, now has a new claim to fame. The midwestern city boasts the hottest real estate market in the U.S., according to a new study from Realtor.com.

Oshkosh's relatively affordable home prices, plus idyllic surroundings, including lakefront vistas, have catapulted the city to the top spot on the list of most desirable housing markets in the U.S. The combination of those two factors made it especially attractive to homebuyers as mortgage rates started to climb in 2022 and amid soaring home prices which have remained elevated across much of the country. The U.S. home price index up 47% compared with 2020. 

"Situated on Lake Winnebago, Oshkosh offers buyers affordability in an idyllic setting," Hannah Jones, senior economic research analyst for Realtor.com, said in a statement.

The median home price in Oshkosh is $374,000, coming in below the national median of $439,950 for July, according to Realtor.com, and appealing to budget-conscious homebuyers. The rankings factored in market demand, measured by property views on Realtor.com, plus market pace based on the number of active days properties remained listed on the site.

Across the U.S., growing land and home construction costs have been rising faster than Americans' incomes since the 1960s, according to the Harvard Joint Center for Housing Studies. Homeownership is becoming such a financial burden that an April survey from Redfin found that some homeowners have even had to skip meals, take a second job or sell their belongings to keep up with their mortgage.

Multiple offers, bidding wars

House hunters are demonstrating great interest in the area, too. Listings for homes in Oshkosh on Realtor.com received nearly four times more views per property in July compared with the national average. And available homes don't last long — they sit on the market for an average of just 18 days, compared with the national average of 50 days. 

Local real estate agents say they've seen homebuying activity heat up in the area. 

"We are still getting multiple offers in Oshkosh and even seeing some bidding wars," Berkshire Hathaway HomeServices agent Kate Schlagel-Grier said in a statement.

Chris Siamhof, also with Berkshire Hathaway HomeServices, said clients have been willing to waive home inspections and have offered to pay the owner's property taxes for one year in an effort to close deals. 

"And we are still seeing some houses going for up to $30,000 over asking," she said in a statement. 

Some Americans are fleeing bigger cities like Milwaukee in search of deals on homes in places like Oshkosh, where the cost of living is much lower, according to Realtor.com. As a result, demand is rising, and inventory is shrinking, which could eventually put pressure on home prices in the area. 

Ten Midwest metro areas claimed spots on July's 20 Hottest Markets list; 10 cities in the Northeast also made the cut. 

Hartford, Connecticut, where the median home price is $444,000, came in second, after Oshkosh. It's appealing in part because of its close proximity to New York City. Manchester, New Hampshire, took the third spot. 

Here are the top 20 hottest housing markets in the U.S., according to Realtor.com. 

1. Oshkosh, WI
   
2. Hartford, CT
3. Manchester, NH
4. Rockford, IL
5. Akron, OH
6. Monroe, MI
7. New Haven, CT
8. Rochester, NY
9. Janesville, WI
10. Providence, RI
11. Canton, OH
12. Springfield, IL
13. Springfield, MA
14. Syracuse, NY
15. Lancaster, PA
16. Peoria, IL
17. Concord, NH
18. Green Bay, WIS
19. Worcester, MA
20. Cleveland, OH