NAR Predicts Hottest Housing Markets for 2025 – Is Your City on the List?

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The National Association of Realtors (NAR) recently released its annual report identifying the top 10 housing market hot spots for 2025.

The “Housing Hotspots 2025: Top Markets Amid Price Stabilization” report is based on economic, demographic and housing market factors.

“Important factors common to the best-performing markets in 2025 include affordable available inventory, a better opportunity to unlock lower mortgage rates, higher income growth for young people and net migration to select metro areas,” said Lawrence Yun, chief economist at NAR.

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The top ten markets, in alphabetical order, are:

• Boston-Cambridge-Newton, Massachusetts-New Hampshire

• Charlotte-Concord-Gastonia, North Carolina-South Carolina

• Grand Rapids-Kentwood, Michigan

• Greenville-Anderson, South Carolina

• Hartford-East-Hartford-Middletown, Connecticut

• Indianapolis-Carmel-Anderson, Indiana

• Kansas City, Missouri-Kansas

• Knoxville, Tennessee

• Phoenix-Mesa-Chandler, Arizona

• San Antonio-New Braunfels, Texas

These areas exhibit strong financing environments with lower homeowner turnover or more attractive mortgage rates. Most of these markets outperform national standards in at least six of the ten NAR standards.

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NAR expects a more stable housing market in 2025. The Fed is expected to continue to gradually ease monetary policy, although concerns about the federal deficit and rising public debt may moderate the extent of interest rate cuts.

Despite these factors, borrowing costs are expected to stabilize, providing some relief to potential homebuyers. NAR expects mortgage rates to stabilize at approximately 6%, likely establishing a new normal. This rate is expected to attract more buyers to the market, resulting in an estimated 4.5 million existing homes being sold in 2025.

House prices It is also expected to continue to rise, albeit slower than in previous years. NAR expects a modest price increase of about 2%, bringing the current median home price to $410,700.

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