I
f you're dreaming of owning a home in 2025, the National Association of Realtors (NAR) has just released its list of top housing market hotspots poised to outshine the rest of the country. These cities have been carefully selected based on strong economic, demographic, and housing factors that signal future market strength.

    The NAR's analysis reveals that these markets share common traits, including affordable home prices, stable or declining mortgage rates, strong job growth, net migration, and fewer "locked-in" homeowners. According to Lawrence Yun, the NAR's Chief Economist, "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."

    Here are the NAR's top 10 housing hotspots for 2025:

    1. Boston-Cambridge-Newton, Massachusetts-New Hampshire (Average Home Price: $694,494)

    Boston is a great city with a vibrant economy, but its prices are above the national average. The potential for job growth and starter homes makes it an interesting place for buyers.

    2. Charlotte-Concord-Gastonia, North Carolina-South Carolina

    Charlotte has seen 10% job growth in the past five years and a large share of affordable homes, with 43% priced below $324,000. This is a rapidly growing city that's attractive to families and young professionals.

    3. Grand Rapids-Kentwood, Michigan (Average Home Price: $271,960)

    Grand Rapids offers affordable home prices, averaging around $271,960. The area has fewer homeowners locked into lower mortgage rates, so more homes are likely to come on the market.

    4. Greenville-Anderson, South Carolina (Average Home Price: $307,315)

    Greenville boasts affordable average home prices at $307,315, coupled with homes selling quickly – about 17 days on the market. This is a good option for young families and professionals.

    5. Hartford-East Hartford-Middletown, Connecticut (Average Home Price: $178,696)

    Hartford's affordability is a big draw, making it a great choice if you're on a tighter budget. The fact that many homeowners have been there for a while could mean good opportunities in 2025, with homes potentially coming on the market.

    6. Indianapolis-Carmel-Anderson, Indiana (Average Home Price: $223,261)

    Indianapolis is another market with a good amount of affordable housing, with nearly 42% of homes priced under $236,000. The area has strong job growth and fewer locked-in homeowners.

    7. Kansas City, Missouri-Kansas (Average Home Price: $233,826)

    Kansas City has a favorable market due to a generally lower average mortgage rate, lower share of locked-in homeowners, and affordable prices. This is a good mix of affordability and economic opportunity.

    8. Knoxville, Tennessee (Average Home Price: $350,614)

    Knoxville is a hot market where approximately 50% of those moving in buy homes. The average home value of $350,614 makes it a comparatively affordable option, especially when you consider its location at the foothills of the Great Smoky Mountains.

    9. Phoenix-Mesa-Chandler, Arizona (Average Home Price: $414,977)

    Phoenix offers relatively affordable housing, lower cost of living, and strong job growth. This is a popular place for people, particularly from California, to move to.

    10. San Antonio-New Braunfels, Texas (Average Home Price: $250,834)

    San Antonio has a growing job market and the average home price of $250,834 is below the national average. The cost of homes has decreased over the past year, and the city continues to see a steady stream of new residents.

    Key takeaways from these hotspots include:

    * Affordability is key: all of these markets have relative affordability, either in terms of overall price or in terms of a good share of starter homes.

    * Don't expect dramatic price drops: while prices may stabilize, don't expect home prices to fall through the floor.

    * Mortgage rates will likely stabilize: the Federal Reserve is expected to continue cutting borrowing costs next year, and most experts expect mortgage rates to settle around 6%.

    * Do your research: even within these hot markets, it's essential to research specific neighborhoods, school districts, and local amenities to find the perfect fit for you and your family.

    * Be prepared to move quickly: in most of these areas, houses are moving fast, so be sure to have your financing in order and be ready to make an offer when you find the right place.