Looking to buy a home? Houses sell for under $250K in the hottest housing market in the US. Plus, ways to make homeownership more affordable

You might expect the country’s hottest housing market to be somewhere balmy — perhaps Florida or the Carolinas. But it’s actually Irondequoit, New York, a suburb of Rochester that’s home to about 50,000 people.

A report published Dec. 23 by Redfin found that Irondequoit is the most competitive housing market in the U.S., with homes in this lakeside town typically selling in just 8.5 days for well over asking price (1). That price — just under $250,000 — is also appealing to buyers.

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Nationwide, the typical home for sale is on the market for more than two months (2) and the median selling price has been just over $410,000, according to the Federal Reserve Bank of St. Louis (3).

Rounding out Redfin’s top five are three locales in California (Sunnyvale, Santa Clara and Mountainview), as well as Tonawanda Town, a Buffalo suburb, which is about 90 miles southwest of Irondequoit.

A ‘long, slow’ housing market recovery

Homeowners who scored mortgage rates under 3% during the pandemic may be discouraged from selling and taking on one of today’s rates of more than 6% to buy another home. As a result, buyers have had less selection and higher prices.

But Redfin predicts that 2026 will see a “great housing reset,” marking the beginning of “a long, slow recovery for the housing market” (4).

The Midwest and Great Lakes regions “have wide appeal because they’re fairly affordable and provide relatively safe havens against climate-related events like wildfires and floods,” according to a Dec. 2 report by Redfin.

The real estate firm goes on to speculate: “Small and mid-sized cities are luring recent graduates with affordable rents and opportunities to build stable careers in blue-collar fields, as AI replaces some entry-level white-collar jobs.”

Read More: This $1B private real estate fund is now accessible to non-millionaires. Here’s how you can get started with as little as $10

Meanwhile, homes in regions of Florida and Texas that are prone to natural disasters and face skyrocketing insurance costs, and where many remote workers who are now being mandated to return to the office had relocated, will likely “languish on the market.” Sellers may be forced to sell at a loss.

Some of the least competitive housing markets in the U.S. will be in the Sun Belt, Redfin says, including Nashville, San Antonio, Austin, Fort Lauderdale, West Palm Beach and Miami.

So, if you work remotely or otherwise have flexibility in where you can settle down, you may want to consider some of America’s most affordable housing markets in the Rust Belt. But not everyone can just pick up and move.

Paths to homeownership

If high housing prices and steep mortgage rates are hampering your desire to buy a home, you have a few options that could make homeownership more affordable.

One option is a USDA loan, offered by the U.S. Department of Agriculture, which offers below-market mortgage rates for low-income households or buyers who don’t have a down payment. However, to be eligible, you’ll need to buy a home in a designated rural or suburban area.

If you’re an active-duty service member, veteran or surviving spouse, you may be eligible for a VA home loan, which means you don’t need a down payment and you’ll benefit from limited closing costs and low mortgage rates.

A Federal Housing Administration (FHA) loan allows people with a low credit score or low income to benefit from a low down payment, low closing costs and easy credit qualifying. This can sometimes be a good option for first-time home buyers. According to the U.S. Department of Housing and Urban Development, an FHA loan can offer down payments as low as 3.5% of the purchase price.

Another option is a down payment assistance program, which could include grants, cash gifts or low-interest loans. There are programs available across the country offered at state, county and city levels. Look into what’s on offer in your area (your real estate agent may be able to help) to see if you’re eligible for financial assistance on a down payment and/or closing costs.

If you want to be eligible for the best mortgage rates, you’ll want to get your finances in order before you begin house hunting. That means paying down any high-interest debt like credit cards or personal loans, which can improve your debt-to-income ratio (improving your eligibility for a mortgage) and boosting your credit score (helping you get a better rate).

The more you can save up for a down payment, the better — if you can get a shorter-term mortgage (say, 15 years instead of 30), you’ll pay far less interest over the term of the loan. And that applies whether you live in Irondequoit or Nashville.

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Redfin (1, 4); Federal Reserve Bank of St. Louis (2, 3)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.