When something is considered underrated, it’s often for different reasons, but in the real estate market, underrated areas deserve a closer look—they may not have drawn much attention yet, and this could be your chance to get ahead.
People usually default to the coasts when talking about the hot real estate market. Cities like Austin, Miami, and Seattle get all the buzz, while the Midwest quietly continues to offer some of the best returns and most livable communities in the country. If you have been watching housing demand and trends closely, you might notice that many are sleeping on the Midwest—and they shouldn’t, especially not with emerging opportunities like Hill City homes by The Jabusch Collective, where modern design blends with mountain charm at a price you won’t believe.
So, what’s really going on in the heartland? Why are real estate investors, first-time buyers, and remote workers suddenly looking at places they couldn’t locate on a map two years ago?
Let’s dig in.
Why the Midwest Is the Next Smart Move in Real Estate
If you haven’t noticed yet, there’s a quiet shift happening—and it’s largely driven by frustration. Skyrocketing home prices, aggressive bidding wars, and limited inventory have made buying a home in major metros feel more like gambling than investing. That is why more people are widening their search radius, both geographically and mentally. They’re waking up to what the Midwest can offer, and the coasts can’t: space, affordability, and sustainability.
Unlike the hype-fueled growth in places like Phoenix or Nashville, Midwestern cities are building slowly and steadily like a snowball rolling downhill, gaining size and momentum. The cost of living is manageable. Property taxes are often lower. Infrastructure isn’t overstressed. It’s the kind of environment that makes sense for long-term investment, not just speculative flipping.
What Makes a Market ‘Underrated’?
Being “underrated” doesn’t mean “invisible.” It means the market has fundamentals worth paying attention to but isn’t getting the national spotlight… yet.
Here are the criteria you should use when evaluating an underrated market:
- Affordable price per square foot
- Consistent job growth or economic diversification
- Low vacancy rates
- Improving infrastructure (roads, internet, schools).
- Growing population or inbound migration
- Strong rental demand or ROI potential
These are the kinds of places where you can still buy a three-bedroom home with a yard for under $300K—and not feel like you’re settling. They’re often supported by local industries (education, healthcare, tourism), with just enough small business activity and a lively downtown to feel livable.
Spotlight: Hill City, South Dakota
If there’s one place that checks every single box mentioned, it’s Hill City, SD. Hill City is often known more for tourism than real estate. But here is the thing—that’s exactly why it’s a hidden gem. It’s the kind of town that attracts year-round visitors for hiking, biking, and its charming art scene, while also seeing a quiet residential revival and becoming a place that can truly be called home.
Hill City homes by The Jabusch Collective are beginning to reshape the landscape of what’s possible in small-town Midwestern real estate. We’re talking about contemporary design, energy-efficient construction, and layouts that reflect the needs of today’s buyer.
Also, remote workers are catching on. Retirees are relocating. And savvy investors are realizing they can pick up long-term rental properties or vacation homes at a fraction of the cost of homes in Colorado or Montana—while still tapping into the outdoor tourism appeal.
Let’s not forget that South Dakota has no state income tax, a friendly business climate, and lower-than-average property taxes. In terms of investment logic, that’s a rare trifecta.
What’s Fueling This Momentum?
Honestly, it’s not just affordability. Several factors are pushing these markets forward—and they’re not slowing down.
Remote Work Changed the Map
People aren’t tethered to an office anymore. That’s why buyers are making decisions based on lifestyle, not commute times. This is one of the reasons why a cabin in Hill City suddenly becomes more appealing to many than a condo in a congested metro.
Lifestyle Over Labels
There’s a growing rejection of “hustle city” culture. Many people are now interested in hiking trails, small businesses, friendly neighbors, and maybe even chickens in the backyard. Midwest towns offer all that—without the sticker shock.
Local Investment Is Catching Up
Cities and counties in the Midwest are putting money into high-speed internet, public transit, downtown revitalization, and small-business support. These improvements raise property values and attract residents who stick around.
Tourism Converts Visitors to Residents
Markets like Hill City benefit from seasonal visitors who fall in love with the area and decide to buy a second home or move permanently. That’s organic, sustainable demand.
Some Tips If You Want to Invest in These Hidden Gems
Work with local experts – Real estate in smaller markets runs on relationships. It is best to connect with developers and agents who understand zoning laws, rental demand, and seasonal trends.
Understand the long game – These markets may not double in price overnight, but they offer stability and steady growth, especially for buy-and-hold strategies. That is why understanding how to play your cards right has become more essential.
Check the infrastructure – Make sure roads, schools, and broadband are up to your standards. Many small towns are modernizing, but it’s good to verify.
Consider multi-use potential – Vacation home + rental income + retirement plan? That’s an example of how you win in underrated markets.
Final Take: Look Where No One Else Is Looking
If you’re still chasing overvalued properties in overhyped metros, it might be time to take a breath—and look toward the Midwest; it isn’t just a flyover country anymore. It is a region where potential runs deep, communities stand strong, and real value is just the beginning.
And if you’re looking for a place to start, Hill City homes by The Jabusch Collective serve as a textbook example of how good design and perfect timing can transform an underrated market.
