Looking for a Home in 2025? Here Are 10 Hot Markets You Need to Know!
Are you planning to buy a home in 2025? Good news! While home prices and mortgage rates are still a challenge, some cities are heating up as great places to buy.
The National Association of Realtors (NAR) recently shared its list of 10 housing hotspots expected to perform well next year.
These areas were picked based on job growth, affordable prices, and available homes.
According to Lawrence Yun, NAR’s chief economist, these markets have key factors like better inventory, affordable prices, and faster income growth.
With more homes coming on the market, buyers might finally catch a break in 2025.
Predictions for 2025
NAR expects mortgage rates to drop slightly, possibly stabilizing around 6%.
The Federal Reserve has already cut rates three times this year and might lower them more in 2025.
Lower rates mean more people can afford homes, and the number of houses for sale should increase.
Home prices are likely to go up, but not as quickly as before. Yun believes next year will bring better opportunities for buyers.
“The worst affordability challenges are behind us,” he said.
Top 10 Housing Hotspots for 2025
1. Boston-Cambridge-Newton, MA-NH
- Average Home Price: $694,494
Boston isn’t cheap, but it has starter homes and lower mortgage rates than the national average. Young buyers could have better chances here as rates stabilize.
2. Charlotte-Concord-Gastonia, NC-SC
- Average Home Price: Below $324,000
Charlotte has seen 10% job growth in the past five years and offers affordable homes, making it a great pick for first-time buyers.
3. Grand Rapids-Kentwood, MI
- Average Home Price: $271,960
Grand Rapids is one of the more affordable markets, and with fewer homeowners locked into low rates, more houses should hit the market next year.
4. Greenville-Anderson, SC
- Average Home Price: $307,315
Homes in Greenville sell quickly—usually within 17 days! It’s a growing city with plenty of starter homes for young families.
5. Hartford-East Hartford-Middletown, CT
- Average Home Price: $178,696
Hartford stands out for its low prices and affordable mortgage rates. It’s a smart choice for budget-conscious buyers.
6. Indianapolis-Carmel-Anderson, IN
- Average Home Price: $223,261
Indianapolis offers affordable homes, strong job growth, and more listings than other markets. It’s ideal for buyers looking for value.
7. Kansas City, MO-KS
- Average Home Price: $233,826
With affordable homes and lower mortgage rates, Kansas City appeals to millennials and first-time buyers.
8. Knoxville, TN
- Average Home Price: $350,614
Knoxville attracts newcomers, with nearly 50% choosing to buy homes instead of renting. It’s affordable and scenic, located near the Great Smoky Mountains.
9. Phoenix-Mesa-Chandler, AZ
- Average Home Price: $414,977
Phoenix is popular with Californians looking for lower costs and strong job growth. It’s an up-and-coming destination for movers.
10. San Antonio-New Braunfels, TX
- Average Home Price: $250,834
San Antonio’s home prices have actually dropped a bit, making it even more affordable. It also has strong job growth and a steady flow of new residents.
Our Take
2025 could be the year the housing market opens up for more buyers.
While affordability is still an issue, lower mortgage rates and growing inventories give hope.
Whether you’re a first-time buyer or just looking for a change, these 10 cities offer great opportunities.
Keep an eye on interest rates and start planning early to take advantage of the improving market conditions!