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ioux Falls, South Dakota is a rising star in the US housing market. According to Realtor.com's September 2024 Hottest Housing Markets report, this city of 200,000 has jumped an impressive 131 spots since last year, moving from near the bottom to the middle of rankings for the 300 largest metros.

    "This is a 'warm' market that's 'heating up' compared to last month and last year," says Realtor.com senior economic analyst Hannah Jones. The city's median home price of $358,000 is also a major draw, being $67,000 less than the national average.

    Sioux Falls' strong job market, with major employers like Sanford Health and Wells Fargo, has attracted interest from buyers. "Coupled with a relatively affordable housing market, it's becoming an attractive option for both first-time homebuyers and investors," says Kwame Darko, CEO of Kwame Buys Houses.

    The city's emphasis on community development, infrastructure improvement, and outdoor recreation opportunities has created a desirable quality of life that appeals to a wide range of people. Other up-and-coming hot markets include Bloomington, Illinois (up 112 spots) and Poughkeepsie, New York (up 89 spots), both with median home list prices well below the national average.

    These smaller towns offer affordable housing options without sacrificing access to jobs and amenities. "Affordable markets in the Northeast and Midwest continue to shine as buyers look for areas where they can afford more for less," says Jones. Other cities that made it into the 20 Hottest Markets for September include Boston, Norwich, CT, Rochester, NY, and Peoria, IL.