The National Association of Realtors (NAR) has identified ten top housing markets for 2025, based on a range of economic, demographic, and housing factors. This announcement was made during NAR's sixth annual Real Estate Forecast Summit in Washington.

Lawrence Yun, NAR Chief Economist and Senior Vice President of Research, highlighted the common traits among these markets: "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."

The ten markets identified are 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), and San Antonio-New Braunfels (Texas).

NAR predicts that mortgage rates will stabilize near 6% in 2025. This stabilization is expected to encourage more buyers to enter the market, with projections of 4.5 million existing-home sales. The median existing-home price is anticipated to reach $410,700.

Despite ongoing national housing shortages, inventory levels are gradually improving. New construction projects and homeowners listing their properties are expected to contribute to this increase. Housing starts are projected to reach 1.45 million units over the next few years.

Yun expressed optimism about future homebuying conditions: "Home buyers will have more success next year," he said. "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."

NAR used ten criteria to determine these hot spots, including job growth and home price appreciation.