Buying a home these days can be quite challenging, especially with prices being what they are. We’re still trying to figure out if the housing market will lean towards buyers or sellers in the coming year. Regardless, some locations are likely to present better buying opportunities than others. The National Association of Realtors (NAR) recently released a report spotlighting the top metro areas poised to be “housing hot spots” for 2025, based on various economic, demographic, and housing metrics.
In terms of personal finance, the economy might face certain challenges in 2025. For those without verifiable income, it’s crucial to know what options are available. Plus, the growing presence of homeowners associations is something potential buyers need to consider closely.
Lawrence Yun, the NAR’s chief economist and senior vice president of research, points out that areas with promising market conditions typically feature affordable inventory, competitive mortgage rates, rising incomes for young adults, and strong migration patterns.
Looking to 2025, the year seems to be shaping up as one filled with chances for both those looking to sell homes and those hoping to buy them, according to Nadia Evangelou, NAR’s senior economist and research director. Notably, four of the hottest markets are based in the South—interestingly, none in Florida. Meanwhile, the Midwest boasts three such areas.
Here’s the complete list from NAR:
– Boston-Cambridge-Newton, MA-NH
– Charlotte-Concord-Gastonia, NC-SC
– Grand Rapids-Kentwood, MI
– Greenville-Anderson, SC
– Hartford-East Hartford-Middletown, CT
– Indianapolis-Carmel-Anderson, IN
– Kansas City, MO-KS
– Knoxville, TN
– Phoenix-Mesa-Chandler, AZ
– San Antonio-New Braunfels, TX
Though these areas aren’t in any specific order, Greenville-Anderson in South Carolina particularly stands out. Evangelou highlights its strong financing conditions, favorable migration trends, better affordability for new buyers, robust job growth, and increasing home values. Remarkably, about 42% of homes here cater to first-time buyers.
We are facing potentially unprecedented times as we step into 2025, cautions Jacob Channel, a senior economist at LendingTree. With the incoming administration possibly pushing forward with plans like mass deportations or broad tariffs on imports, along with restructuring Fannie Mae and Freddie Mac’s roles, these moves could significantly impact housing affordability.
Immigrants make up an essential part of the workforce, comprising roughly a third of the labor in construction trades according to 2023 Census data analyzed by the National Association of Home Builders. Changes in immigration policy could significantly influence this sector, leading to worker shortages. When there aren’t enough workers, wages might rise, and these costs might be transferred to homebuyers through increased home prices.
