Housing Hot Spots for 2025: A Look at the Top 10 Markets
Buying a house is not easy or cheap, especially in today’s market. However, some areas will offer more favorable market conditions than others, according to a new report by the National Association of Realtors (NAR).
The Top 10 ‘Housing Hot Spots’ for 2025
The NAR identified 10 top metro areas as "housing hot spots" for 2025 based on a variety of economic, demographic, and housing factors. The top 10 "hot spots" are:
- Boston-Cambridge-Newton, Massachusetts-New Hampshire
- Charlotte-Concord-Gastonia, North Carolina-South Carolina
- Grand Rapids-Kentwood, Michigan
- Greenville-Anderson, South Carolina
- Hartford-East-Hartford-Middletown, Connecticut
- Indianapolis-Carmel-Anderson, Indiana
- Kansas City, Missouri-Kansas
- Knoxville, Tennessee
- Phoenix-Mesa-Chandler, Arizona
- San Antonio-New Braunfels, Texas
What Makes a ‘Housing Hot Spot’?
Important factors common among the top-performing markets in 2025 include:
- Available inventory at affordable price points
- A better chance of unlocking low mortgage rates
- Higher income growth for young adults
- Net migration into specific metro areas
The South is a Hot Spot for 2025
Four out of the NAR’s 10 "hot spots" are located in the South, with none in Florida. Three of the list’s hot spots are in the Midwest.
Greenville-Anderson, South Carolina: A Standout
The metro area comprising Greenville and Anderson, South Carolina, stands out, according to the report. Factors such as a positive financing environment, strong migration gains, better affordability for first-time buyers, strong job creation, and home price appreciation highlight the area. About 42% of properties in the area are starter homes.
Unprecedented Times Ahead?
While "a lot of these areas have been growing in recent years," it’s important to remember that "we could potentially be walking into some pretty unprecedented times in 2025 and beyond," said Jacob Channel, senior economist at LendingTree. President-elect Donald Trump’s ideas, such as mass deportations and tariffs on all imports, could have domino effects into housing affordability.
Conclusion
In conclusion, while the housing market is challenging, some areas will offer more favorable conditions for buyers and sellers in 2025. The top 10 "housing hot spots" identified by the NAR offer a mix of affordability, economic growth, and migration gains that make them attractive options for homebuyers.
Frequently Asked Questions
Q: What are the top 10 "housing hot spots" for 2025?
A: The top 10 "housing hot spots" are Boston-Cambridge-Newton, Massachusetts-New Hampshire; Charlotte-Concord-Gastonia, North Carolina-South Carolina; Grand Rapids-Kentwood, Michigan; Greenville-Anderson, South Carolina; Hartford-East-Hartford-Middletown, Connecticut; Indianapolis-Carmel-Anderson, Indiana; Kansas City, Missouri-Kansas; Knoxville, Tennessee; Phoenix-Mesa-Chandler, Arizona; and San Antonio-New Braunfels, Texas.
Q: What factors make a "housing hot spot"?
A: Important factors common among the top-performing markets in 2025 include available inventory at affordable price points, a better chance of unlocking low mortgage rates, higher income growth for young adults, and net migration into specific metro areas.
Q: Why is the South a hot spot for 2025?
A: Four out of the NAR’s 10 "hot spots" are located in the South, with none in Florida. Three of the list’s hot spots are in the Midwest.
