Realtor.com’s May list of the hottest housing markets nationally featured well-known cities such as Boston, Rochester (New York) and Fort Wayne. Residing in the number 10 slot was a surprising upstart.
Pueblo, Colorado.
A year ago, the “Steel City” ranked at number 37. Skyrocketing to the Top Ten was due to a 13 percent increase in prospective buyers viewing Pueblo real estate listings combined with a five percent growth in year-over-year listing prices.
Pueblo’s entry into elite real estate markets is due to multiple factors that include:
- Least expensive residential housing out of all major Colorado cities
- Ranking in the top ten of most affordable places to live
- Costs of goods and services below the average nationally
- Named by the American Association of Retired Persons (AARP) as one of the Best Places to Live in the United States
Investors and buyers are looking at communities such as Pueblo due to the slowing price increases in metro Denver and the trend of residents looking to move away from the capital city. In their tracking of home searches on their website, Redfin sees more expensive markets losing their appeal to Pueblo and similar areas that are smaller and more affordable.
The discount brokerage’s CEO Glenn Kelman refers to it as “The Wrath of Grapes,” a term based on the iconic novel where a family leaves Oklahoma for a better life in California. The reality is quite the opposite. Both home and business owners are gravitating more towards the center of the United States.
Meanwhile, the affordability gap is widening. Realtor.com notes that median prices of houses for sale is a little over $300,000. That number is $55k higher than what a typical household can afford based on earnings.
For now, Pueblo is reaping the benefits with prospective homeowners “steeling” their financial resolve when it comes to more affordable housing.