Index: Connecticut housing markets hottest in the nation

NEW YORK – The New Haven-Milford housing market is listed as the hottest housing market in the country and Norwich-New London No. 3 following a shift towards the Northeast and the Rust Belt after the pandemic, according to Bankrate’s 2025 Housing Heat Index.
The index, which was release on Aug. 4, shows that a once hot pandemic-era housing market has cooled off since 2023, and shifted away from the Sun Belt. The study ranked both the top 212 metropolitan statistical areas (MSA) and the top 50 MSAs by population based on the greatest 1-year home appreciation, 1-year job growth, 1-year population growth, the lowest number of active residential listings per thousand people, median days on the market, and unemployment rate.
The overall hottest housing market is New Haven-Milford, Connecticut, which ranked highly in home appreciation (1), active listings per 1,000 residents (15) and median days on market (39), but ranked poorly in job growth (187), employment (91), and population growth (126). Notably, home prices have appreciated by at least 9% over the past year in all of the top five hottest markets except Charleston-North Charleston, South Carolina.

“We’re seeing a major reversal in some of the pandemic-era housing market trends,” said Bankrate Analyst Alex Gailey. “The rise of remote work during the pandemic allowed many Americans to relocate to different parts of the country, with many moving to sunny, warm metros with more affordable housing and relatively low taxes. However, the flow of people moving to those places has slowed down since the end of the pandemic and the issuing of return-to-office orders.”

On the other end of the spectrum, Cape Coral-Fort Myers, Florida, took the bottom spot as the overall coldest housing market in Bankrate’s ranking. Cape Coral-Fort Myers ranked poorly in year-over-year appreciation (212), active listings per 1,000 residents (210), and median days on market (210). Additionally, Cape Coral-Fort Myers ranked poorly in job growth (194) and employment (107).

Of the top 20 hottest housing markets, 11 are located in either the Northeast or the Rust Belt. On the other hand, some markets that became the most overheated during the pandemic are cooling fast, such as Cape Coral-Fort Myers (3 in 2023 vs. 212 in 2025), North Port-Sarasota-Bradenton (4 in 2023 vs. 210 in 2025), and Punta Gorda (8 in 2023 vs. 211 in 2025).

Bankrate’s study also ranked the hottest and coldest housing markets in the top 50 metros by population (with their position in the overall ranking in parentheses). In both rankings, the hottest housing markets (overall and by population) are located in Connecticut:

Out of the top 50 largest metros, Hartford-East Hartford-Middletown, CT is the hottest housing market, ranking highly in home appreciation (1), active listings per 1,000 residents (2) and median days on market (5). On the other hand, New Orleans-Metairie, LA is the coldest housing market out of the top 50 largest metros, ranking poorly in home appreciation (48), active listings per 1,000 residents (41) and median days on market (48).

“Hot housing markets are seeing relatively high interest from buyers, but even the hottest markets are having to accommodate for lower buyer demand,” Gailey added. “In colder markets, buyers have more bargaining power and options than they did just a year ago and should take advantage of it as long as they can afford to buy right now. Sellers in cooling housing markets may have to make concessions and reduce prices, but buyer demand may ramp back up if mortgage rates start to fall.”

To create the Housing Heat Index, Bankrate analyzed 212 metro areas, examining appreciation of home values, employment levels, job growth, population trends, homes listed for sale and typical selling times. The index effectively shows where sellers—and buyers—have the most bargaining power across the country.