Looking for a home in 2025? Check out these 10 housing hotspots.

Although 2024 is coming to an end, American housing crisis Remains. But still high house prices and increased mortgage rates While sidelining many prospective home buyers, some real estate markets across the country continue to attract buyers.

The National Association of Realtors (NAR) this month released a list of 10 local housing markets that are expected to be hot spots in 2025 that will outperform the rest of the country in terms of sales. Locations are selected by NAR based on their current individual strengths in 10 key economic, demographic and housing factors that are considered predictors of future market activity.

“Key factors common to the top-performing markets in 2025 include available inventory at affordable price points, a better opportunity to unlock lower mortgage rates, higher income growth for young adults and net savings in specific metro areas,” said NAR principal Lawrence Yun. “Includes migration.” Economist and senior vice president of research at the report.

One of those factors is the share of “locked-in” homeowners in a given area – people with low mortgage rates from previous years who are in no rush to sell and take out new loans at much higher rates. Areas with fewer locked-in homeowners were considered hotter than others by NAR because there is a greater chance of seeing properties listed there. More listings means more opportunities for buyers.

Predictions for 2025

NAR expects mortgage rates to stabilize next year, even if not to fall as sharply as some home-hunters were expecting. Federal Reserve made third consecutive announcement on Wednesday cut its benchmark rateLowering the federal funds rate by another quarter percentage point. Although mortgage rates They don't always reflect the Fed's rate moves, they track the yield on the 10-year Treasury note, rising or falling with returns on government debt.

NAR thinks the Fed will continue to cut borrowing costs in 2025 and predicts mortgage rates will stabilize around 6%, bringing millions more buyers back into the market. The Fed is now hinting at just two rate cuts in 2025, down from its previous forecast of four in September. Experts expect the Fed's latest cut to bring mortgage rates down slightly slight decline,

The real estate group also expects home prices to rise further in the coming year, although at a slower pace than in 2024. The number of homes on the market will continue to increase in 2025.

“Homebuyers will have more success next year,” Yun said in the report. “The worst of the affordability challenges is over as excess inventory, stable mortgage rates and continued job and income growth pave the way for more Americans to achieve home ownership.”

Here, in alphabetical order, are NAR's 10 top housing hot spots for 2025.

Boston-Cambridge-Newton, Massachusetts-New Hampshire

According to Zillow, buying a home in the Boston-Cambridge-Newton area isn't exactly cheap, with home prices averaging $694,494. That's more than $200,000 more than the national median home price $430,584,

Still, the metro area has several strengths. For one, NAR expects the local housing market, which includes parts of southern New Hampshire, to benefit from stabilizing mortgage rates next year, which will likely mean fewer locked-in homeowners. Mortgage rates in Boston are generally lower than the national average, according to the real estate group, which noted that Boston also has a good number of starter-homes. Typically 85% of the average priced home, starter homes are important for first-time buyers.

Charlotte-Concord-Gastonia, North Carolina-South Carolina

In addition to 10% job growth over the past five years, Charlotte has a significant share of affordable housing, with 43% of homes priced under $324,000 – a big draw for first-time buyers and young families. The average interest rate in the area is 6.85%, slightly Below The national average for a 30-year fixed mortgage is 6.89%.

Grand Rapids-Kentwood, Michigan

Grand Rapids, Michigan, offers an ample stock of affordable homes, with the average home price being $271.96, while mortgage rates are around 6.9%, slightly above the national average. But because Grand Rapids has a small share of mortgage originations with rates below 6%, NAR predicts fewer lock-ins and more listings in 2025.

Greenville-Anderson, South Carolina

With house prices being average $307,315 And due to a large influx of new residents, homes in Greenville don't stay listed for long – typically about 17 days. Mortgage rates are just above the national average, at 6.9%, likely due to the recent decline in foreclosures in the state. According To MortgageRates.com.

NAR points to the 42% of homes in Greenville classified as starter homes as another reason it predicts the local housing market will be a standout for families and young professionals in 2025.

Hartford-East-Hartford-Middletown, Connecticut

When it comes to affordability, it's hard to beat Hartford's average home price of $178,696. In 2023, the city's average mortgage rate of 6.5% was one of the lowest among top markets. According to NAR, Connecticut's capital has the highest proportion of homeowners exceeding the area's average tenure of 17 years, indicating potential growth in local inventory.

Indianapolis-Carmel-Anderson, Indiana

Indianapolis made the NAR list due to strong job growth and housing affordability. Approximately 42% of the housing stock is priced below $236,000, while the median home value is $223,261. According to NAR, “With fewer 'locked-in' homeowners than nationally, the region is likely to see more available inventory as mortgage rates stabilize around 6% next year.”

Kansas City, Missouri-Kansas

Kansas City's generally low average mortgage rates and small share of locked-in homeowners make it a favorable market for financing and inventory. The median home price is $233,826, making home ownership affordable for one in three millennials in the area. According to NAR, affordability and competitive financing will make the Kansas City housing market a top-performing market in 2025.

knoxville, tennessee

NAR says that as one of Tennessee's most popular housing markets, Knoxville is a place where newcomers tend to settle down – nearly 50% of movers in the area decide to buy a home. The average price of a home in Knoxville is $350,614, making this city in the foothills of the Great Smoky Mountains affordable compared to other major cities.

Phoenix-Mesa-Chandler, Arizona

The average home price in Phoenix is $414,977Relatively affordable housing stock, as well as a comparatively low cost of living and strong job growth, have made Arizona's capital a prime destination for Californians looking to relocate. According to NAR, “Demographic change and economic expansion have established Phoenix as a prosperous and dynamic market.”

San Antonio-New Braunfels, Texas

The average home price in San Antonio is $250,834That makes it one of the few markets to see a decline in residential real estate costs over the past year. The home city of The Alamo, NAR reports, has had one of the strongest records of job growth in the US in recent years, and it continues to attract a steady influx of new residents.