I
f you're dreaming of owning a home in 2025, you'll be pleased to know that the National Association of Realtors (NAR) has identified its top 10 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 list is not just a random selection; it's based on various key indicators such as 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 top-performing markets include available inventory at affordable price points, low mortgage rates, higher income growth for young adults, and net migration into specific metro areas.
Here are the NAR's 10 top housing hotspots for 2025 in alphabetical order:
1. Boston-Cambridge-Newton, Massachusetts-New Hampshire
Average Home Price: $694,494
Boston is a great city with a vibrant economy, but 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
Average Home Price: Data not available, but 43% of homes are priced below $324,000
Charlotte has seen 10% job growth in the past five years and a large share of affordable homes. Its combination of job growth and affordable housing makes it an attractive option.
3. Grand Rapids-Kentwood, Michigan
Average Home Price: $271,960
Grand Rapids offers affordable home prices and fewer homeowners locked into lower mortgage rates, making more homes available for sale.
4. Greenville-Anderson, South Carolina
Average Home Price: $307,315
Greenville boasts affordable average home prices and strong demand, with 42% of homes being starter homes. The relatively affordable prices and growing job market make it an attractive option for young families and professionals.
5. Hartford-East Hartford-Middletown, Connecticut
Average Home Price: $178,696
Hartford's affordability is a big draw, with the average home price hard to beat at $178,696. Many homeowners have been there for a while, which could lead to a rise in inventory.
6. Indianapolis-Carmel-Anderson, Indiana
Average Home Price: $223,261
Indianapolis has strong job growth and fewer locked-in homeowners, making it an attractive option for those looking to get into the housing market.
7. Kansas City, Missouri-Kansas
Average Home Price: $233,826
Kansas City has a favorable market due to lower mortgage rates, affordable prices, and a growing young population that can afford to buy homes.
8. Knoxville, Tennessee
Average Home Price: $350,614
Knoxville is a hot market with approximately 50% of those moving in buying homes. The average home value makes it a comparatively affordable option, especially considering 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 and strong job growth, making it an attractive option for those looking for a warm climate and affordability.
10. San Antonio-New Braunfels, Texas
Average Home Price: $250,834
San Antonio has a growing job market and the average home price 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, with relative affordability in terms of overall price or starter homes.
* Don't expect dramatic price drops; prices may stabilize but won't fall through the floor.
* Mortgage rates will likely stabilize around 6%.
* Research specific neighborhoods and local amenities to find the perfect fit for you and your family.
* Be prepared to move quickly, as houses are moving fast in most of these areas.
