As the housing market continues to stay steady, 2025 is here to bring out more opportunities for people looking to buy a house. Stepping into 2025, let’s look at the top hot spots of the housing market for 2025 have been announced by NAR based on demographic, housing and economic factors.
Some of the factors that are influencing the housing market this year are:
- There are fewer homeowners with locked-in mortgages compared to the national average
This is good because areas with fewer locked-in homeowners will witness an increase in property listings and inventory.
- Mortgage rates are lower on average than the national level
More buyers will be able to qualify for mortgages, which will increase the demand for housing.
- A higher number of households will reach homebuying age in the next 5 years compared to the national average.
The age of a typical first-time home buyer is 38 years old. The areas that have this age bracket of home buyers will see a demand for homes.
- There are more Millennial renters who can afford to buy a home compared to the national average.
Areas where more number of millennials can afford home buying will see a boost in demand for homes.
- Home prices are appreciating at a faster rate than the national average.
When price appreciates faster, it often reflects a strong housing market experiencing an increased demand for housing.
So, which are the top 10 housing market spots for 2025?
- 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
The housing market in 2025 is showing more favorable signs for both new and seasoned buyers. With fewer locked-in homeowners, rising home prices, and increasing affordability for Millennials, now is the perfect time to consider purchasing a home in one of these top hot spots. Whether you’re eyeing cities like Kansas City, Phoenix, or Greenville, these areas represent where the demand is heating up. In 2025, the combination of economic, demographic, and housing trends is set to create a dynamic landscape that benefits homebuyers looking for long-term growth.
Looking to buy a house this year? You can visit our site for buying a home, or you can always get in touch with a team of experts at Flyhomes who will help you out through the process!
Happy New Year!
Quick note: You can also read more about NAR’s forecast here.
