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Looking for a home in 2025? Check out these 10 housing hotspots.
Although 2024 is winding down, the U.S. housing crisis lives on. But even as steep home prices and elevated mortgage rates sideline many would-be homebuyers, some real estate markets around the country continue to attract buyers.
The National Association of Realtors (NAR) this month released a list of 10 local housing markets it expects to be hot spots in 2025, outperforming the rest of the country in sales. The locations have been chosen by NAR based on their current individual strengths across 10 key economic, demographic and housing factors that are considered predictors of future market activity.
“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, in the report.
One of those factors is the share of “locked-in” homeowners in a given area — those with low mortgage rates from previous years who are in no rush to sell and take on new loans at much higher rates. Areas with fewer locked-in homeowners were considered by NAR to be hotter than others as they are more likely to see properties listed. More listings means and more opportunities for buyers.
Predictions for 2025
NAR expects mortgage rates to stabilize, if not fall as sharply as some house-hunters were hoping, next year. The Federal Reserve on Wednesday announced its third straight cut in its benchmark rate, lowering the federal funds rate by another quarter of a percentage point. Although mortgage rates don’t always mirror the Fed’s rate moves, they tend to track the yield on the 10-year Treasury note, rising or falling along with the return on government debt.
NAR thinks the Fed will continue to cut borrowing costs in 2025 and predicts that mortgage rates will settle around 6%, bringing in millions more buyers back to the market. The Fed is now hinting at only two rate cuts in 2025, down from its previous projection in September of four. Experts expect mortgage rates may come down slightly with the Fed’s the latest reduction possibly contributing to a modest decline.
The real estate group also expects home prices to rise further in the coming year, though more slowly than in 2024. The number of homes on the market is and will continue to increase in 2025.
“Homebuyers will have more success next year,” Yun said in the report. “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.”
Here, in alphabetical order, are NAR’s 10 top housing hot spots for 2025.
Boston-Cambridge-Newton, Massachusetts-New Hampshire
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Buying a home in Boston-Cambridge-Newton area isn’t exactly cheap, with home prices averaging $694,494, according to Zillow. That’s more than $200,000 north of the national average home price of $430,584.
Still, the metro area has a number of strengths. For one, NAR expects the local housing market, which includes portions of southern New Hampshire, next year to benefit from stabilizing mortgage rates, which would likely mean fewer locked-in homeowners. Mortgage rates in Boston typically skew lower than the national average, according to the real estate group, which noted that Boston also has a good number starter-homes. Typically priced at 85% of the median-priced home, starter homes are critical for first-time buyers.
Charlotte-Concord-Gastonia, North Carolina-South Carolina
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In addition to 10% job growth over the last five years, Charlotte has a significant share of affordable housing, with 43% of homes priced below $324,000 — a huge draw for first-time buyers and young families. The average interest rate in the area is 6.85%, slightly below the national average of 6.89% for a 30-year fixed mortgage.
Grand Rapids-Kentwood, Michigan
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Grand Rapids, Michigan, offers an ample stock of affordable homes, with the average home price at $271,96, while mortgage rates hover around 6.9%, slightly above the national average. But because Grand Rapids has a small proportion of mortgage originations with rates below 6%, NAR predicts fewer lock-ins and more listings in 2025.
Greenville-Anderson, South Carolina
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With home prices averaging $307,315 and a large influx of new residents, houses in Greenville don’t stay listed for long — typically about 17 days. Mortgage rates run just above the national average, at 6.9%, most likely because of recent foreclosures happening in the state, according to MorgageRates.com.
NAR points to the 42% of homes categorized as starter homes in Greenville as another reason why it predicts the local housing market will be a standout for families and young professionals in 2025.
Hartford-East-Hartford-Middletown, Connecticut
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When it comes to affordability, Hartford’s average home price of $178,696 is hard to beat. In 2023, The city’s average mortgage rate of 6.5% was one of the lowest among the top markets. Connecticut’s capital city also has the highest proportion of homeowners surpassing the area’s average tenure of 17 years, an indication of a potential increase in local inventory, according to NAR.
Indianapolis-Carmel-Anderson, Indiana
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Indianapolis made NAR’s list because of strong job growth and housing affordability. Nearly 42% of the housing stock is priced below $236,000, with the average home value at $223,261. “With fewer ‘locked-in’ homeowners than the national level, this area is likely to see more available inventory as mortgage rates stabilize around 6% next year,” according to NAR.
Kansas City, Missouri-Kansas
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Kansas City’s generally lower average mortgage rate and smaller share of locked-in homeowners makes it a favorable market for financing and inventory. The average house is priced at $233,826, making homeownership in the area affordable for one in three millennials. Affordability plus competitive financing will make the Kansas City housing market a top performer in 2025, according to NAR.
Knoxville, Tennessee
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One of the hottest housing markets in Tennessee, Knoxville is a place where newcomers go to settle down — roughly 50% of movers to the area decide to buy a home, NAR says. The average value of a home in Knoxville is $350,614, making this city located in the foothills of the Great Smoky Mountains affordable compared with other major cities.
Phoenix-Mesa-Chandler, Arizona
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The average home value in Phoenix is $414,977. The relatively affordable housing stock, plus a comparatively lower cost of living and strong job growth, have made Arizona’s capital city a key destination for Californians looking to relocate. “Demographic shifts and economic expansion has established Phoenix as a prosperous and dynamic market,” according to NAR.
San Antonio-New Braunfels, Texas
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The average home in San Antonio is priced at $250,834, which makes it one of the few markets to see a decrease in residential real estate costs over the past year. The city, home of The Alamo, also has had one of the strongest records of job growth in the U.S. in recent years, according to the NAR report, and it continues to attract a steady influx of new residents.
Washington — The Senate on Friday confirmed President Biden’s 234th nominee to the federal judiciary, matching the number of judges approved for lifetime appointment to the nation’s courts during President-elect Donald Trump’s first term.
The confirmation of Benjamin Cheeks to the federal district court in Southern California by a 49 to 47 vote led Mr. Biden to tie the number of his predecessor’s judicial appointments. The president is on track to surpass Trump’s confirmations to the federal bench before the year’s end, with the Senate teeing up the nomination of Serena Murillo to the federal district court in Central California.
As he nears the end of his presidency, Mr. Biden will close out his four years in office having appointed one Supreme Court justice, 45 judges to the federal appeals courts, 186 to the district courts and two to the Court of International Trade. His selection of Justice Ketanji Brown Jackson made history, since she is the first Black woman to serve on the nation’s highest court.
Mr. Biden has also selected a record number of public defenders to serve as federal judges on the appeals courts, and his nominees are the most diverse compared to those tapped by his predecessors.
There’s been heightened focus on the judiciary by presidents in recent years as gridlock in Congress has led to unilateral executive actions on a variety of issues touching on American life. But often those efforts give way to legal challenges, leaving courts as the final deciders in disputes over hot-button policies.
While Mr. Biden will likely end his presidency with more judicial appointments than Trump, he did not see the same level of success as his predecessor in putting his stamp on the Supreme Court. Jackson replaced Justice Stephen Breyer, a member of the court’s liberal wing, following his retirement in 2022.
But Trump named three justices to the high court, Justices Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett. Barrett replaced the late Justice Ruth Bader Ginsburg, a liberal member, which locked in a 6-3 conservative supermajority.
Mr. Biden also trails Trump in appointments to the 13 courts of appeals, ending his presidency with 45 judges approved to those courts, compared to Trump’s 54.
But Trump had an advantage when he took office in 2017, inheriting 17 appellate court vacancies after the Republican-led Senate blocked then-President Barack Obama’s nominees in the last two years of his term. When Mr. Biden started his presidency, there were just two open seats on the courts of appeals.
With a second Trump term on the horizon, some judges who announced their plans to retire have reversed course as it became clear their replacements wouldn’t be confirmed before Jan. 3, when Republicans will assume control of the Senate.
Judge James Wynn of the 4th Circuit notified Mr. Biden last week that he would no longer assume senior status, a form of semi-retirement, and the White House withdrew the nomination of his possible successor, North Carolina Solicitor General Ryan Park.
North Carolina’s Republican senators, Thom Tillis and Ted Budd, opposed Park’s nomination, and Tillis lambasted Wynn’s decision to walk back his retirement, calling it “brazenly partisan” and driven by Trump’s election.
Two district court judges appointed by Democratic presidents, Judges Max Cogburn and Algenon Marbley, also rescinded their plans to take senior status following Trump’s victory, according to Reuters.
The reversals come after Senate Democrats reached a deal with Republicans to allow for swifter consideration of Mr. Biden’s district court picks. GOP senators — with Trump’s backing — had been working to slow the pace of judicial confirmations during the lame-duck session, but under the deal, they would forego procedural roadblocks on district court nominees if Democrats would not bring four remaining appellate court nominations up for a vote.
There will be four current or future vacancies on the courts of appeals for Trump to fill after he takes office and more than 30 on the district courts, according to the Administrative Office of the U.S. Courts.
Between 60 and 80 people are injured Friday after a car crashed into a Christmas market in the eastern German city of Magdeburg, a spokesman for the local rescue service told AFP.
According to the emergency service, several people were “severely” injured, the spokesman said. German media reported one person had died, although that was not yet confirmed by authorities.
This is a developing story. Please check back for updates.
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