T
he Sun Belt's housing market is cooling, while Northern markets are heating up, according to Bankrate's 2025 Housing Heat Index. The trend reversal is attributed to rising costs of living in Southern states, including increasing home insurance and property taxes, making them less affordable.

    During the pandemic, Florida's housing market boomed as people moved to the region for its lower cost of living and relatively affordable homes. However, Bankrate's research team found that buyer demand has faded, and home sellers are slashing prices. The Northeast had a strong showing in this year's ranking, with three of the top five hottest markets.

    The New Haven-Milford metropolitan area of Connecticut, for example, rose from 82nd place in 2023 to the top five in this year's ranking. In contrast, Florida dominated the coolest markets, taking four of the bottom five spots. Home prices are increasing nationwide, but in Florida, homeowners and prospective buyers are feeling the pinch due to rising costs.

    According to Bankrate's ranking, the North Port-Sarasota-Bradenton metro in Florida was one of the hottest in 2023 but is now among the coldest. "I visited a number of open houses in that market a few months ago, and I saw a lot of lonely listing agents sitting in kitchens waiting for buyers to come through," said Jeff Ostrowski, Bankrate's housing market analyst.

    Here are the five hottest and five coolest markets in the US, according to Bankrate:

    **Hottest Markets:**

    1. New Haven-Milford, Connecticut - Population: 576,718, Unemployment rank: 91, One-year appreciation rank: 1

    2. Rockford, Illinois - Population: 337,103, Unemployment rank: 148, One-year appreciation rank: 2

    3. Norwich-New London, Connecticut - Population: 282,602, Unemployment rank: 57, One-year appreciation rank: 5

    4. Charleston-North Charleston, South Carolina - Population: 869,940, Unemployment rank: 51, One-year appreciation rank: 41

    5. York-Hanover, Pennsylvania - Population: 471,240, Unemployment rank: 79, One-year appreciation rank: 17

    **Coolest Markets:**

    1. Cape Coral-Fort Myers, Florida - Population: 860,959, Unemployment rank: 107, One-year appreciation rank: 212

    2. Punta Gorda, Florida - Population: 212,122, Unemployment rank: 165, One-year appreciation rank: 207

    3. North Port-Sarasota-Bradenton, Florida - Population: 934,956, Unemployment rank: 68, One-year appreciation rank: 211

    4. Shreveport-Bossier City, Louisiana - Population: 383,269, Unemployment rank: 134, One-year appreciation rank: 210

    5. Naples-Marco Island, Florida - Population: 416,233, Unemployment rank: 91, One-year appreciation rank: 150