The top 10 'housing hot spots' for 2025 are not located in Florida.
- The National Association of Realtors predicts that four of the top 10 "housing hot spots" for 2025 will be found in the South.
- The metro area of Greenville and Anderson, South Carolina, is highlighted in the report, although the NAR did not rank the hot spots.
Purchasing a home can be challenging and expensive, particularly in the current real estate climate.
The housing market is uncertain for next year, but certain areas will have more favorable conditions, says a report by the National Association of Realtors.
In 2025, the NAR named the top 10 metro areas as "housing hot spots" after considering economic, demographic, and housing factors.
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According to Lawrence Yun, NAR chief economist and senior vice president of research, the top performing markets in 2025 share certain important factors such as affordable price points for available inventory, a higher chance of obtaining low mortgage rates, increased income growth for young adults, and net migration into specific metro areas.
The top 10 'housing hot spots'
According to Nadia Evangelou, senior economist and director of research at the NAR, 2025 is predicted to offer more opportunities for both homebuyers and sellers.
The NAR has identified four "hot spots" in the South, while none are located in Florida. Additionally, there are three hot spots in the Midwest.
Here's the full NAR list:
- 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
The metro area of Greenville and Anderson, South Carolina, is highlighted in the report, although the NAR did not rank the hot spots.
Evangelou stated that the area has several factors that make it attractive, including a positive financing environment, strong migration gains, better affordability for first-time buyers, strong job creation, and home price appreciation. Approximately 42% of properties in the area are starter homes.
'Unprecedented times'
Jacob Channel, senior economist at LendingTree, stated that while some areas have been expanding in recent years, we may face unprecedented times in 2025 and beyond.
Donald Trump, the newly elected president, has openly expressed plans to implement measures such as mass deportations, impose tariffs on all imports, and terminate the conservatorship of Fannie Mae and Freddie Mac, he stated.
The construction tradesmen industry is heavily influenced by immigrants, who make up approximately one-third, or 32.5%, of the workforce, according to a 2023 Census data analysis by the National Association of Home Builders.
Experts predict that changes in immigration policy could affect the labor force in the sector, potentially leading to higher wages and increased home prices for buyers.
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