Tour the obscure California city that's suddenly the hottest housing market in America

Melia Robinson/Business Insider

Welcome to Vallejo, California.

Vallejo, California, a small city across the bay from San Francisco, was named the hottest housing market in America by Realtor.com in June.

It's the last place that many Bay Area locals might expect to take the title. Vallejo, which briefly hosted the state capital between 1852 and 1853, became the largest city in California to declare bankruptcy in 2008. Its reputation for crime and squalor has previously landed the "Up Bay" city on Forbes' list of most miserable cities and Newsweek's list of dying cities.

But Vallejo is making a comeback as young professionals get priced out of San Francisco and Oakland and search for affordable housing in the far reaches of the Bay Area.

I recently spent the day in Vallejo to see how a downtrodden city became a top real-estate destination in less than 10 years.