This overlooked ‘Gem City’ is among America’s hottest housing markets, with $239K median home prices. Here’s the affordability catch to watch out for

Realtor.com doesn’t calculate hotness based on good looks, even if Erie is known as “Gem City” and “Gem of the Great Lakes” thanks to its sparkling harbor.

The real estate platform ranks markets based on the average number of views local properties get on Realtor.com, how many days they take to sell and relative inventory.

On average, in June, Erie properties attracted 3.3 times as many viewers as the national average and sold in 29 days compared to the national average of 53 days.

The tight housing supply is another indicator of a strong market. There are just two months of inventory, making it a seller’s market.

“The hotness in Erie is largely fueled by significant inventory scarcity,” says Realtor.com senior economist Hannah Jones.

So how did a city that gets so much Lake-effect snow — an average 104 inches every winter — get so hot?

Up-and-comer is an affordable lakefront community

In fact, the cooler climate is one of the draws. The risk management platform Augurisk suggests that Erie is climate resilient in the long term, with average summer temperatures expected to rise no more than 2.2 degrees over the next century.

A more immediate appeal is the city’s waterfront, complete with bars, restaurant patios and ready access to water sports, recreational boating and fishing.

Pennsylvania’s only port city is centrally located, just two hours’ drive from Cleveland, Pittsburgh and Buffalo, with jobs in insurance, healthcare and education. There are universities to choose from and a graduate medical college.

One of the biggest upsides to Erie is its affordability, with homes listed for a median $239,000, $200,000 less than the national median. Among the 20 “hottest” cities, only Binghamton, New York — with homes selling for a median $227,000 — is less expensive.

“Affordability makes Erie so attractive to buyers,” Fred Amendola, an agent with Keller Williams Flagship Realty, told Realtor.com. “Some folks from the area may not think so, but those coming back from other areas or moving here see the difference.”

The catch to cheap homes

The catch to buying a cheap home in this up-and-comer city is that it’s likely a fixer-upper.

According to the City of Erie’s five-year plan released last year, the city’s housing stock is old. Nearly 90% of the homes are at least 50 years old, and half were built prior to 1950.