A modest lakeside city positioned between Chicago and Milwaukee has unexpectedly emerged as the most sought-after property market in the United States. Kenosha, Wisconsin, claimed the number one spot on Realtor.com's list of the hottest housing markets for December 2025, signalling that buyer competition there is more intense than anywhere else in the country.
The Metrics of a Market Boom
Researchers determine a market's 'hotness' by analysing buyer demand, measured by unique online views per property listing, and the speed of sales. By these crucial indicators, Kenosha stood out dramatically. Listings attracted more than three times the national average number of views, and the typical home spent just 44 days on the market, nearly a month faster than the US norm.
Jake Krimmel, a senior economist at Realtor.com, explained the appeal: 'With a median listing price of $384,000, the metro's relative affordability has broadened its appeal, drawing interest from both local buyers and shoppers from nearby Chicago, which is not as affordable.' This surge in demand culminated in a year-end victory, after Kenosha featured in the site's top 20 rankings for ten of the first eleven months of 2025.
The 'Chiwaukee' Advantage: Location and Lifestyle
Local estate agents point to Kenosha's prime geography as a fundamental driver of its popularity. Situated directly on Lake Michigan, roughly midway between Milwaukee and Chicago, the city offers a compelling blend of accessibility and value. The commute to either major urban centre is under an hour by car or train, granting residents suburban living with easy access to two job markets and cultural hubs.
'We are sometimes referred to as 'Chiwaukee,'' said local realtor Wendy Gauss. 'I think that's what's drawing a lot of people into our area.' This location also provides a financial edge, as many residents live in Wisconsin for its lower taxes and cost of living but work in Illinois for higher wages.
Beyond commute benefits, Kenosha offers a high quality of life. The city features a scenic waterfront with free-access beaches like Simmons Island Beach, parks, walking trails, and a revitalised downtown with independent shops and restaurants. Its population of roughly 99,147 enjoys low crime rates and well-regarded public schools.
Intense Competition and Future Outlook
The influx of demand has transformed the local market dynamics. Homes are selling rapidly, often sparking bidding wars due to limited inventory. Kenosha also tied with San Jose, California, for the nation's second-fastest-moving market, with homes spending a median of just 33 days on the market in 2025.
Wendy Gauss highlighted the core issue: 'We need more houses. We need to build more.' This demand is catalysing significant investment, including a $450 million downtown redevelopment project approved for new apartments, hotels, and retail spaces.
Looking ahead, economist Jake Krimmel warned that competition is unlikely to diminish soon. While easing mortgage rates in 2026 may encourage more buyers, persistent inventory shortages, especially in affordable, high-demand markets like those in the Midwest, will keep pressure elevated. Kenosha's rise highlights a broader regional trend, with 11 of the top 20 hottest markets located in the Midwest, including seven in Wisconsin alone.
