“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,” said Yun.
Here are the top 10 housing hot spots for 2025, listed alphabetically:
- Boston-Cambridge-Newton, MA-NH
- Charlotte-Concord-Gastonia, NC-SC
- Grand Rapids-Kentwood, MI
- Greenville-Anderson, SC
- Hartford-East-Hartford-Middletown, CT
- Indianapolis-Carmel-Anderson, IN
- Kansas City, MO-KS
- Knoxville, TN
- Phoenix-Mesa-Chandler, AZ
- San Antonio-New Braunfels, TX
Read next: As a busier market looms, how can brokers gear up for success in 2025?
The Federal Reserve’s gradual easing of monetary policy is expected to stabilize mortgage rates around 6% in 2025. NAR anticipates this stabilization will encourage more buyers to return to the market, driving existing-home sales to approximately 4.5 million.
“Home buyers will have more success next year,” he said in the report. “The worst of the affordability challenges are over as more inventory, stable mortgage rates and continued job and income growth pave the way for more Americans to achieve homeownership.”