The housing market this year has been turbulent, marked largely by a significant shortage of homes available, which brought home prices up. Economic conditions also saw mortgage rates remaining elevated throughout the year.
While it is too soon to tell whether the housing market is going to improve next year, experts say some metro areas in the United States are expected to see more favorable conditions than others.
That is according to a new report from the National Association of Realtors (NAR), which analyzed data to identify the top 10 metropolitan areas expected to become hot spots in 2025. The list was formed based on demographic, economic, and housing factors- specifically, the available inventory of affordable homes, opportunities to unlock low mortgage rates, net migration, and income growth for young adults.
The median home sale prices listed below are from Zillow.
Read more: US Developers Building Housing in Abandoned Shopping Malls To Address Shortage in the Market
10 Hottest Housing Markets in 2025
1. Boston-Cambridge-Newton, Massachusetts-New Hampshire
Median Home Sale Price: $596,143
Median Home Sale Price Year-over-Year Growth: 7.6%
Job Growth (October 2019 to October 2024): -0.2%
Share of Millennials Who Can Afford to Buy a Home: 20.2%
2. Charlotte-Concord-Gastonia, North Carolina-South Carolina
Median Home Sale Price: $393,554
Median Home Sale Price Year-over-Year Growth: 1.6%
Job Growth (October 2019 to October 2024): 10.1%
Share of Millennials Who Can Afford to Buy a Home: 27.8%
3. Grand Rapids-Kentwood, Michigan
Median Home Sale Price: $271,960
Median Home Sale Price Year-over-Year Growth: 4.4%
Job Growth (October 2019 to October 2024): 3.1%
Share of Millennials Who Can Afford to Buy a Home: 35.6%
4. Greenville-Anderson, South Carolina
Median Home Sale Price: $307,315
Median Home Sale Price Year-over-Year Growth: 2.6%
Job Growth (October 2019 to October 2024): 8.0%
Share of Millennials Who Can Afford to Buy a Home: 30.0%
5. Hartford-East-Hartford-Middletown, Connecticut
Median Home Sale Price: $178,696
Median Home Sale Price Year-over-Year Growth: 3.8%
Job Growth (October 2019 to October 2024): 0.2%
Share of Millennials Who Can Afford to Buy a Home: 28.8%
6. Indianapolis-Carmel-Anderson, Indiana
Median Home Sale Price: $223,261
Median Home Sale Price Year-over-Year Growth: 2.6%
Job Growth (October 2019 to October 2024): 9.3%
Share of Millennials Who Can Afford to Buy a Home: 31.1%
7. Kansas City, Missouri-Kansas
Median Home Sale Price: $233,826
Median Home Sale Price Year-over-Year Growth: 3.1%
Job Growth (October 2019 to October 2024): 4.8%
Share of Millennials Who Can Afford to Buy a Home: 33.9%
8. Knoxville, Tennessee
Median Home Sale Price: $350,614
Median Home Sale Price Year-over-Year Growth: 3.1%
Job Growth (October 2019 to October 2024): 8.8%
Share of Millennials Who Can Afford to Buy a Home: 21.7%
9. Phoenix-Mesa-Chandler, Arizona
Median Home Sale Price: $414,977
Median Home Sale Price Year-over-Year Growth: 0.5%
Job Growth (October 2019 to October 2024): 11.9%
Share of Millennials Who Can Afford to Buy a Home: 16.6%
10. San Antonio-New Braunfels, Texas
Median Home Sale Price: $250,834
Median Home Sale Price Year-over-Year Growth: -2.8%
Job Growth (October 2019 to October 2024): 10.7%
Share of Millennials Who Can Afford to Buy a Home: 30.7%
