Are you planning on buying a home in 2025? Here are the top 10 housing hot spots, according to report!
Purchasing a home can be challenging and expensive, especially in the current housing market. While it’s uncertain if 2025 will favor buyers or sellers, some regions are expected to have more favorable conditions, according to a report by the National Association of Realtors (NAR), which highlighted the top 10 housing hot spots for 2025 – chosen based on economic, demographic, and housing trends.
“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 Lawrence Yun, NAR chief economist and senior vice president of research.
The Top 10 Housing Hot Spots for 2025
Nadia Evangelou, NAR’s senior economist and director of research at the NAR, emphasized that 2025 could bring new opportunities for both homebuyers and sellers. The list of promising metro areas includes several locations in the South and Midwest, here’s all of them:
- 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
Although the NAR didn’t rank these locations, Greenville-Anderson, South Carolina, stands out due to strong migration trends, affordability for first-time buyers, job growth, and home price appreciation, according to Evangelou.
Economic Uncertainty Ahead
Despite growth in many regions, 2025 could bring unprecedented economic challenges. Jacob Channel, a senior economist at LendingTree, pointed out potential policy changes under President-elect Donald Trump that could impact housing affordability. Proposals such as stricter immigration policies and import tariffs, could have ripple effects on the housing market.
Immigrants make up 32.5% of construction workers, according to an analysis of 2023 Census data by the National Association of Home Builders. Restrictive policies could reduce the labor force, leading to wage increases and higher home construction costs. Rising construction expenses could further drive up home prices, making it harder for buyers to enter the market.