US cities in the Northeast dominated Zillow's (Z, ZG) list of 10 most-popular markets of 2024 as affordability challenges pushed homebuyers to consider smaller towns outside of major-metropolitan suburbs.

Seven markets in the Northeast appeared on Zillow's top 10 list, according to a report published by the real estate marketplace on Tuesday.

"The majority of this year's most popular cities were exurbs -- charming smaller towns situated beyond the suburbs yet within commuting distance of a major metropolitan area," Zillow said.

Topping the list was Manchester, New Hampshire, the largest city in the state, followed by Rockford in Illinois and Connecticut city Stamford. Columbia, Maryland, came in fourth.

"In another year of higher mortgage rates, areas of affordability and opportunity were center stage in 2024," said Zillow Chief Economist Skylar Olsen. "With the rise of hybrid work models, more people are discovering hidden-gem cities they might have previously overlooked when daily commutes were the norm."

Price pressures can lead to "sparse" options in the hottest markets as existing owners postpone listing their homes, while buyers opt for locations "that offer the right mix of affordable living and lifestyle amenities," according to Olsen.