City cut United's lead to five points with victory over West Brom.
"Five points in five games is obviously a lot better off than eight points in five games," said Hodgson when asked for his assessment on where City stand in the title race.
"Alex will be disappointed not to have got something from the Wigan game.
"I don't think he'd have been looking at the fixtures tonight saying Man City are going to get beaten by West Brom. That's not a realistic appraisal of the situation.
"Five points is still five points. They've got to take those five points so the title race is a little bit more interesting after tonight's results than it was before tonight's results but there's still an awful long way to go.
"I think it's more of a problem for some of the teams that are fighting down the bottom that Manchester United will now have the bit between their teeth again.
"Maybe some of the teams fighting for survival might have been hoping that either Man City or Man United might knock off a little bit and accept their situation.
"Now of course they are going to be fighting tooth and nail all the way through."