R
esidential real estate investors often look beyond their local markets due to price or demographic factors. The Midwest has long been an attractive target due to relatively stable prices compared to other regions. Realtor.com recently ranked its top 10 "hidden gems" for real estate investors, with five markets in the Midwest, four in the Northeast, and one in the South.

    The analysis considered listing prices, views per property, and housing stock across the 75 largest US metros. Markets were ranked by combining high listing viewership, low home prices, price growth, and low rental vacancy. "As the rental market eases in many areas, the Midwest and Northeast stand out for their combination of affordability and stability," said Hannah Jones, Realtor.com senior economic research analyst.

    Dayton, Ohio, topped the list with a median price below the national average of $239,000. Prices have risen 6.7% over the past year, and the city has a low 4.7% rental vacancy rate. Other Ohio markets in the top 10 included Cleveland-Elyria and Columbus, which consistently ranks as one of Realtor.com's hottest housing markets.

    Rochester, New York, was second on the list with a median listing price of $265,000. Prices were up 9.5% in Rochester, and the rental vacancy rate was low at 4.5%. Other New York markets in the top 10 included Buffalo-Cheektowaga and Albany-Schenectady-Troy.

    The highest-priced town on the list was Knoxville, Tennessee, with a median list price of $469,000. While prices were up 23.8% over the past year, rent prices are also increasing, up 14% year over year. The Midwest's combination of low vacancies and lower barrier to entry is making it an attractive market for investors.

    "These spots give aspiring investors a chance to tap into long-term growth and set themselves up for solid returns as the market shifts," said Danielle Hale, chief economist at Realtor.com.