Springfield ranked 15th best housing market in the U.S.

Springfield has made the list of the country's top housing markets. The Queen City has been placed as 15th best housing market in the U.S. by the Wall Street Journal and Realtor.com, climbing from number 50 on last year's list.

The ranking by the two publications evaluates 200 most populous U.S. metropolitan areas using a combination of housing market conditions and measures of economic health and livability. The market conditions are based on real estate demand, supply, medial listing price trend, property taxes and climate risk to properties. Quality of life is evaluated on several, smaller weighed factors, including wages, unemployment, amenities and commute time.

Springfield, while the only Missouri city within the top 20, is joined on the list primarily by other Midwest metros. Commerce Bank Chief Economist Scott Colbert said this is largely due to the affordability of the region in comparison with the rest of the country as the Midwest has not seen the major population booms present elsewhere. Nationwide, affordability has been at its worst with interest rates up and median home prices soaring coming out of the COVID-19 pandemic, he said.

David Mitchell, an economics professor at Missouri State University and director of the Bureau of Economic Research, said because of Springfield's low cost of living, housing tends to be more affordable in comparison to other places. The Queen City is also fairly insulated from large swings in the economy.

"We don't really get the big highs, but at the same time, that also means you don't get the big lows, either," he said.

Colbert noted Springfield's spot on the list makes sense. The city's metro area has seen steady population growth, outpacing that of the state, and has seen lower unemployment rates as well.

This makes Springfield stand out from other cities on the top 20. Most of the other top housing markets are also mid-sized rather than major cities, again due to affordability. But Colbert said Springfield is the exception to what he described as the rest of the cities including "depressed areas." He said cities like Lancaster, Pennsylvania, Akron, Ohio and Lansing, Michigan, are among those hardest hit by the decline in manufacturing along the Rust Belt. All of these outscored Springfield on the list, with South Bend, Indiana taking the top spot.

"When you look at the big driving theme, it was certainly just simply, you know, kind of places I will say that haven't benefited recently. Springfield is the exception to this rule," Colbert said. "I think it's probably overweighting the price of the house relative to the economy."

He said the ranking did not put as much weight on other factors that make a place desirable to live in, such as a growing economy, good education system, and access to healthcare.

Population growth was among the biggest factors in a healthy housing market, Mitchell also noted. He said housing stock increases at roughly the same rate as the population grows as the market responds to increased demand. With new construction within city limits constricted, Mitchell said more construction is likely to move beyond the city borders.

Does this mean Springfield residents will be better able to buy a home?

While the ranking makes Springfield attractive for those living in more expensive states, like Texas or California, it doesn't mean local residents will have an easier time buying a home.

Alongside the low cost of living, Mitchell said Springfield also sees below average incomes, which results in less mobility for its residents. As has been the narrative across the country, he said Springfield is in need of more housing stock, especially as the metro area continues to grow.

Although Springfield may attract out-of-state residents to move here, Springfieldians have a harder time moving out. Especially for those who already own a home, Mitchell said there is a bit of "lock in" effect.

"It's difficult to get the same type of house we have here somewhere else, unless you want to pay a whole lot more," he said.

Springfield leaders have focused on improving the city's homeownership rates. But while it may be a favorable housing market for new residents moving to the area, current renters are unlikely to be able to afford buying a home any more than they were before, Colbert said, especially as interest rates have climbed.

"It's cheaper to rent almost everywhere than it is to buy a house," he said. "Basically, many renters have been priced out because home prices are expensive, and it's really no different anywhere in the country."

Impacts of the war in Iran

The war in Iran has seen the price of crude oil surge and in response, the Federal Reserve has kept interest rates steady instead of cutting back. Colbert said the high interest rates hurt affordability, though in Springfield's case, lower priced homes see lesser effects than higher priced homes when it comes to mortgage rates. But that also means those who bought a home when interest rates were lower are likely to stay put.

"It only locks the people that got the super low mortgages in even further, because they know that the move just costs them money," he said.

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For the Springfield housing market, Mitchell said the impacts of the war are likely to be a factor for current commuters. If higher gas prices persist long term, those living in one of Springfield's bedroom communities may choose to move into the city to avoid a longer commute to work. He said the higher demand for homes would likely drive home prices in Springfield proper up, essentially converting cost of commuting into the price of home.

Overall, Springfield's jump from 50th in 2025 to 15th best housing market this year reflects its population growth and low cost of living and low unemployment rates compared to elsewhere in the nation. Springfield was among seven markets that broke into the top 20, with most of them from the Midwest.

Marta Mieze covers local government at the News-Leader. Have feedback, tips or story ideas? Contact her at [email protected].