{"id":187902,"date":"2026-05-15T11:07:35","date_gmt":"2026-05-15T17:07:35","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=187902"},"modified":"2026-05-15T11:07:39","modified_gmt":"2026-05-15T17:07:39","slug":"redfin-ranks-michigan-and-wisconsin-neighborhoods-as-the-hottest-markets-in-the-county-but-should-you-invest-there","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/redfin-ranks-michigan-and-wisconsin-neighborhoods-as-the-hottest-markets-in-the-county-but-should-you-invest-there","title":{"rendered":"Redfin Ranks Several Midwest Neighborhoods as the Hottest Markets in the County\u2014But Should You Invest There?"},"content":{"rendered":"

Your best investment could be a goose-feather-filled down jacket and a pair of fur-lined winter boots. Why? Because Michigan and Wisconsin are the hottest housing markets in the U.S.<\/span><\/p>\n

That\u2019s according to <\/span>Redfin\u2019s 2026 \u201chottest neighborhoods<\/span><\/a>\u201d ranking, where Michigan and Wisconsin took five of the top 10 spots between them.<\/span><\/p>\n

Why the Midwest, and Why Now?<\/span><\/h2>\n

Redfin senior economist Asad Khan explained:<\/span><\/p>\n

\u201cMidwest cities and lesser-known places in Florida are having a moment\u2014and affordability is the reason. Many of these neighborhoods sit just outside major hubs like Milwaukee, Chicago, and Tampa, hitting a sweet spot: lower cost of living without giving up access to highly rated schools, shopping, and dining. They have the convenience of big cities without the big-city price tags.\u201d<\/span><\/em><\/p>\n

For small investors looking to offset risk with lower price points, the Great Lakes and other Midwest cities offer buy-and-hold workhorses to buttress your portfolio without sleepless nights.\u00a0<\/span><\/p>\n

According to Redfin\u2019s 2026 analysis, Wisconsin landed three of the 10 hottest neighborhoods\u2014Oak Creek, West Bend, and Menomonee Falls, all Milwaukee suburbs. Michigan contributed two more: Lincoln Park near Detroit and Howell in Southeast Michigan.\u00a0<\/span><\/p>\n

Redfin\u2019s ranking <\/span>was based<\/span> on year-over-year growth in listing views and measures of buyer competition. Proving its staying power, 2026 was the second consecutive year that Midwestern metros dominated the list.<\/span><\/p>\n

Here is how Redfin ranks the 10 hottest neighborhoods in America for 2026 and their respective median home sales prices:<\/span><\/p>\n

    \n
  1. Land O\u2019Lakes, Florida <\/span><\/strong>(Tampa metro): $425,000<\/span><\/li>\n
  2. Plant City, Florida <\/span><\/strong>(Tampa metro): $320,000<\/span><\/li>\n
  3. Oak Creek, Wisconsin <\/span><\/strong>(Milwaukee metro): $381,200<\/span><\/li>\n
  4. Oceanside, New York <\/span><\/strong>(Nassau County): $725,000<\/span><\/li>\n
  5. West Bend, Wisconsin<\/span><\/strong> (Milwaukee metro): $350,000<\/span><\/li>\n
  6. Lincoln Park, Michigan <\/span><\/strong>(Detroit metro): $158,000<\/span><\/li>\n
  7. Lee\u2019s Summit, Missouri <\/span><\/strong>(Kansas City metro): $397,500<\/span><\/li>\n
  8. Little Neck, Queens, New York <\/span><\/strong>(New York City metro): $796,500<\/span><\/li>\n
  9. Howell, Michigan <\/span><\/strong>(Warren metro): $385,000<\/span><\/li>\n
  10. Menomonee Falls, Wisconsin <\/span><\/strong>(Milwaukee metro): $410,000<\/span><\/li>\n<\/ol>\n

    Bygone-Era Pricing<\/span><\/h2>\n

    In an unaffordable housing market, some of the prices on the Redfin list appear to be from a bygone era. <\/span>Fortune<\/span><\/a> <\/em>reports that many of these markets are 30% or more below similar houses in coastal cities. For example, the Redfin top 10 list shows an average home price in Lincoln Park, on the outskirts of Detroit, at $158,000.<\/span><\/p>\n

    \u201cFor many, it\u2019s not just about cheaper homes, but about being able to build wealth earlier without drowning in overhead,\u201d Danielle Andrews, a real estate agent with Realty One Group Next Generation,<\/span> previously told <\/span><\/a>Fortune<\/span><\/a><\/em>.<\/span><\/p>\n

    More Than Cheap Houses<\/span><\/h2>\n

    Crucially, offering more than just cheap accommodation, the Midwest is attracting residents for employment, lured by an affordable lifestyle commensurate with starter salaries.<\/span><\/p>\n

    For Generation Zers who are making entry-level salaries, \u201cit\u2019s going to be really difficult to survive and save money\u201d in major cities like Los Angeles and New York, Sam Radbil, research and content strategist at Checkr, a background screening company, told<\/span> CNBC<\/span><\/a>. The Midwest already has a natural catchment of renters, too: university graduates entering the workforce.<\/span><\/p>\n

    The <\/span>Wall Street Journal<\/span><\/a><\/em> notes that one of the most sought-after areas for would-be residents is the stretch of Wisconsin along the Fox River Valley from Oshkosh to Green Bay. In the six surrounding counties near Appleton, Oshkosh, Neenah, and Green Bay, only 1 in 7 buyers spends over 30% of their income on housing\u2014the bellwether for affordability\u2014while the national average is 1 in 5.<\/span><\/p>\n

    Equally, only 40% of renters in the area spend more than 30%, compared to half nationwide, while wages are above the national level, thanks to the heavy emphasis on manufacturing jobs.<\/span><\/p>\n

    \u201cThe Value Play of the United States\u201d<\/span><\/h2>\n

    \u201cIt is the value play of the United States,\u201d Joe Wadford, an economist at the Bank of America Institute, told the <\/span>Journal<\/span><\/em>. \u201cIt is a great place to put down roots.\u201d<\/span><\/p>\n

    For <\/span>remote workers<\/span><\/a> who can keep high-paying jobs based on the coasts, parts of the Midwest are a potential gold mine. For investors, too, looking to release home <\/span>equity<\/span><\/a>, certain cities make sense; however, as out-of-towners flood in,<\/span> prices are increasing,<\/span><\/a> and <\/span>potential investment properties are being snapped up by homebuyers<\/span>.<\/span><\/p>\n

    Buying Frenzy Heats Up<\/span><\/h2>\n

    In analyzing Redfin\u2019s data, <\/span>Fortune <\/span><\/em>notes that Lincoln Park has seen a 14% year-over-year increase in home sales, and nearly 40% of homes here sold for over asking price, a trend also reflected in other in-demand parts of Michigan.<\/span><\/p>\n

    \u201cIt\u2019s pretty low inventory,\u201d Michigan-based Redfin Premier Anne Loehr said of Howell, Michigan, in the Redfin report. \u201cThere aren\u2019t many homes to sell because it\u2019s such a popular place.\u201d<\/span><\/p>\n

    This<\/span> is also visually reflected in<\/span> Zillow’s Market Heat Index for March 2026<\/span><\/a>, which showed the power balance shifting from buyers to sellers in certain Midwest markets. Meanwhile, the dynamic reversed in some Sunbelt markets, shifting from sellers to buyers.<\/span><\/p>\n

    Larger Midwestern Cities Dominate for Cash Flow and Appreciation<\/span><\/h2>\n

    For a combination of <\/span>cash flow<\/span><\/a> and <\/span>appreciation<\/span><\/a>,<\/span> Norada Real Estate Investments<\/span><\/a> did a side-by-side evaluation of major Midwestern markets\u2014showing 8%+ cap rates from properties priced around $160K, generating rents of about $1,500 a month in B and B+ neighborhoods\u2014and found that Cleveland, Indianapolis, Kansas City, and St. Louis were the top-performing metros, depending on which neighborhoods investors chose.<\/span><\/p>\n

    The <\/span><\/a>Wall Street Journal<\/span><\/a><\/em>\/Realtor.com Spring 2026 Housing Market Ranking<\/span><\/a>, which evaluates the 200 most populous U.S. metropolitan areas based on a mix of housing market conditions and broader measures of economic health and livability, had South Bend-Mishawaka, Indiana\/Michigan, in the top spot for the second consecutive quarter, while Appleton, Wisconsin, was in second place.\u00a0<\/span><\/p>\n

    There were other notable Midwest cities in the top 20, too, including:<\/span><\/p>\n