The number one emerging housing market in America is in the Midwest. 

Topeka, Kansas, ranked the highest among the top 20 emerging markets and is expected to do relatively well amid the tumultuous housing market compared to the rest of the country, according to the WSJ/Realtor.com Fall 2023 Emerging Housing Markets Index.

The index analyzes key housing market data, economic vitality and lifestyle metrics in order to determine which markets offer the highest quality of life, and where homes are expected to see future price appreciation. 

Topeka, along with the rest of the markets on the list, are also poised to fare relatively better with sales in the midst of what is on track to become the slowest year for home buying since the housing bubble burst in 2008. 

US HOUSING MARKET NEEDS 1M MORE HOMES TO SATISFY DEMAND

The markets that made the top 20 list for this fall had three common factors: a lower-cost living, strong employment and convenient commutes.

In August, home prices climbed annually as buyers competed for scarce inventory. However, the majority of the emerging markets, 15 of the 20, had relatively lower prices than the national median of $430,000 in September.

US HOUSING MARKET: EXPERT SAYS ‘ALL HOPE IS NOT LOST’ FOR POTENTIAL HOMEBUYERS

For one, a typical home for sale in Topeka was listed for $250,000 in September, down 42% from the national median. 

Homes within Kansas' capital city– which is home to several large employers, were also down more than 40% compared to nearby Kansas City, according to the index. 

Even though prices in the Topeka are relatively affordable, the median listing price was still more than $100,000 higher than its 2019 level in September due to buyer competition. 

Just last month, prices rose 8.7% compared to a year earlier as demand kept upward pressure on prices. 

1. Topeka, Kansas 

2. Elkhart-Goshen, Indiana 

3. Oshkosh-Neenah, Wisconsin

4. Fort Wayne, Indiana 

5. Lafayette-West Lafayette, Indiana

6. Racine, Wisconsin 

7. Manchester-Nashua, New Hampshire 

8. Concord, New Hampshire 

9. Columbus, Ohio

10. Johnson City, Tennessee