The National Association of Realtors (NAR) has unveiled its much-anticipated report on the top 10 housing markets to watch in 2025, offering a glimpse into areas where homeownership may become more accessible. The report highlights regions across the United States that stand out for affordability, job growth, and other favorable factors, signaling potential opportunities for buyers and investors alike.
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Why 2025 is a Promising Year for Home Buyers
After years of high mortgage rates aimed at curbing inflation, the NAR predicts that rates will stabilize near 6%, creating a “new normal.” Lawrence Yun, NAR’s chief economist and senior vice president of research, stated, “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.”
This stabilization is expected to increase market activity, with 4.5 million existing-home sales projected for 2025. While home prices will continue to rise, the growth rate will slow, with an anticipated 2% increase. This would place the median existing-home price at approximately $410,700.
The Methodology Behind the Top 10 List
To identify these hot spots, NAR analyzed 10 economic, demographic, and housing factors. These included:
- Job growth
- Mortgage rate trends
- Affordability for millennial renters
- Share of locked-in homeowners reluctant to sell
- Influx of out-of-state movers buying homes
The 2025 Hot Spots
Here are the cities and regions to watch in 2025, along with the key factors driving their inclusion on NAR’s list:
1. Boston-Cambridge-Newton, Massachusetts-New Hampshire
Known for its higher housing prices (averaging nearly $700,000, according to Zillow), the Boston area stands to benefit from stabilizing mortgage rates. Homeowners may feel encouraged to list their properties, increasing inventory and creating more opportunities for buyers.
2. Charlotte-Concord-Gastonia, North Carolina-South Carolina
The Carolinas have experienced a 10% job growth over the past five years, attracting residents from across the nation. Charlotte’s charm and affordability—with 43% of homes priced below $324,000—make it an appealing choice for families and first-time buyers.
3. Greenville-Anderson, South Carolina
Greenville offers a vibrant downtown area with easy access to outdoor activities. Homes here average $307,315, with listings typically selling in just 17 days. This city’s appeal lies in its mix of affordability and quality of life.
4. Kansas City, Missouri-Kansas
Affordability is a major draw in Kansas City, where the average home price is around $234,000. One in three millennials in the area owns a home, and nearly half of recent sales closed below the asking price. Job growth and competitive financing options further enhance its attractiveness.
5. Grand Rapids, Michigan
This Midwest city combines economic stability with a lower cost of living, making it a top contender for families and young professionals seeking affordable housing options.
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What This Means for Buyers
The NAR’s report offers a hopeful outlook for prospective home buyers in 2025. As mortgage rates stabilize and inventory grows, affordability challenges are expected to ease, creating a more accessible housing market.
- For First-Time Buyers: Look for cities like Kansas City and Charlotte, where affordability aligns with job opportunities.
- For Investors: Regions like Boston and Greenville offer strong market dynamics and potential for long-term growth.
- For Millennials: Consider areas with competitive pricing and high homeownership rates among younger generations.
Conclusion
The housing market in 2025 promises to be one of opportunity and growth, with key regions across the U.S. poised for significant activity. Whether you’re a first-time buyer, an investor, or simply looking to relocate, these hot spots offer a compelling mix of affordability, job growth, and quality of life. As Yun aptly notes, “Home buyers will have more success next year,” making 2025 a year to watch for achieving homeownership dreams.
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