Introduction to the Hottest U.S. Neighborhoods
A new report from Redfin reveals the most in-demand neighborhoods across the United States. Redfin ranked U.S. ZIP codes in the 150 most populous metro areas using year-over-year growth in listing views on Redfin.com and a Redfin Compete Score — a measure of how hard it is to win a home in a specific area. The area is then rated on a scale of 0 to 100, where 100 is the most competitive.
Trends in Neighborhood Preferences
Five of the hottest neighborhoods of 2025 are Midwest suburbs. "People are seeking out neighborhoods that have access to city amenities through transit or nearby job opportunities, but they also want that suburban, small town charm," Daryl Fairweather, Redfin Chief Economist, tells CNBC Make It. "The South has been the desirable place in previous years because it’s more affordable on the coast, but insurance costs and property taxes have gone up. The Midwest, however, has stable insurance costs, stable property taxes and a stable housing market."
Methodology of the Report
The report used 2025 data from January 1 to February 28, with year-over-year data compared against the same timeframe in 2024. To rank on Redfin’s final list, a ZIP code had to have over 50 home sales and a Redfin Compete Score above 50. The ZIP codes on the list may include more than one neighborhood, town or village, and the report uses the neighborhood names that represent the area covered. In each of the top 10 hottest neighborhoods, homes are selling quicker now than they did a year ago. Six of the 10 have a lack homes for sale and saw a drop in active listings from a year ago.
Analysis of the Trends
"It reflects strong demand. When there are more buyers, and there are sellers, homes sell quicker," Fairweather says. The trend indicates a shift towards more balanced lifestyles, where proximity to job opportunities and urban amenities is valued, yet the charm and affordability of suburban living are also prioritized.
No. 1 Hottest Neighborhood 2025: Prospect Heights and Clinton Hill, Brooklyn, NYC
Overview of Prospect Heights and Clinton Hill
ZIP code: 11238. Brooklyn’s Prospect Heights-Clinton Hill area ranked number one, with a 105% spike in home sales from a year ago. The median sale in the neighborhood is $1,397,000, which is up 3.9% year over year, according to Redfin. "Prospect Heights being No. 1 speaks to how desirable it now is to be in proximity to a strong labor market like in New York, but it’s still Brooklyn," Fairweather says. "It’s a bit more suburban than Manhattan. I think people are looking for that balance of having job opportunities, especially with return to the office, but still wanting more space."
Prospect Heights and Clinton Hill offer a small-town charm in the middle of central Brooklyn, with a mix of new buildings and gorgeous old brownstones. The area is home to the Brooklyn Museum and just a short walk to Prospect Park, the second-largest park in Brooklyn.
The 10 Hottest U.S. Neighborhoods in 2025
The following list outlines the top neighborhoods:
- Prospect Heights and Clinton Hill, Brooklyn, N.Y.
- Jenison, Mich.
- Campton Hills and St. Charles, Ill.
- Fairport, N.Y.
- Polk Gulch and Russian Hill, Calif.
- Great Kills, Staten Island, N.Y.
- Franklin, Wis.
- Prairie Village and Mission Hills, Kan.
- Lakeville, Minn.
- Bowie, Md.
Jenison, Michigan — ZIP code 49428 — is the second-hottest U.S. neighborhood. The median sale price in the area was $356,500, which was down 0.2% year over year. Fairweather says Jenison ranked No. 2 because of its affordability. "The Midwest, in general, has been stronger this year because it is one of the few parts of the country that remains affordable," she says. "Even given these high mortgage rates, a middle-class family can afford home ownership."
Jenison, Michigan, is a suburb of Grand Rapids. It is less than 15 minutes from the city’s downtown and less than 30 minutes away from Lake Michigan.
Conclusion
The hottest neighborhoods in 2025 are characterized by their balance of affordability, proximity to job opportunities, and suburban charm. As the housing market continues to evolve, understanding these trends can help individuals make informed decisions about where to live and invest. Whether it’s the vibrant Prospect Heights and Clinton Hill in Brooklyn or the more affordable Jenison in Michigan, each neighborhood offers a unique blend of lifestyle and economic benefits.
FAQs
- Q: What are the key factors driving the demand for neighborhoods in 2025?
A: The key factors include affordability, proximity to job opportunities, and the desire for suburban charm and small-town feel. - Q: Why are Midwest suburbs ranking high in the list of hottest neighborhoods?
A: Midwest suburbs are ranking high due to their stable insurance costs, stable property taxes, and stable housing market, making them more affordable and attractive to homebuyers. - Q: How were the neighborhoods ranked in the Redfin report?
A: Neighborhoods were ranked based on year-over-year growth in listing views on Redfin.com and a Redfin Compete Score, which measures how hard it is to win a home in a specific area.
