Hottest Housing Markets in 2025

America’s housing markets evolve constantly year over year, as mortgage rates, job growth, and new construction lead to price changes and demographic shifts that either slow or accelerate demand. From the East Coast to the Rocky Mountains, 2025 is expected to be an exciting time for established and aspiring homeowners. While some cities are cooling off after rapid price spikes, others are heating up - creating opportunities for investors and first-time buyers. So whether you’re looking to buy, sell, or relocate, this list of America’s hottest housing markets will help you stay ahead of the curve. Aerial view of neighborhood

Hottest Metro Areas in 2025

Hot housing markets aren’t ones with high real estate prices, but ones where home value is expected to rise sharply over the next twelve months. Based on data from realtors and economists, buyers can expect to see exceptionally strong returns in:

Salt Lake City, UT

Utah's expanding healthcare, financial, and technology industries have drawn an increasingly large number of people from California and the Pacific Northwest. The city’s natural beauty, urban amenities, and expanding infrastructure, including a light rail system, have made it one of the top moving destinations in the Western United States. Salt Lake homes typically stay on the market for 19 days, compared to 61 days in the rest of the country, and are expected to rise 2.3 percent in value this year.

Richmond, VA

One of America’s oldest cities, Richmond offers a delightful blend of historic architecture and modern conveniences. Residents are drawn to its relative affordability and strong economy, as well as its vibrant art scene and scintillating restaurants. Experts predict its property values will climb roughly 2.9 percent this year. Anyone interested in buying a house should move fast, however. Richmond homes only stay on the market for about nine days.

Kansas City, MO

Kansas City has a robust economy and low cost of living. The city’s added thousands of new jobs in healthcare, technology, and manufacturing, while its home prices are far less than the national average. Revitalization efforts have created more dining and recreational opportunities downtown, adding to its appeal. Home values are expected to rise by around 2.7 percent, while due to intense demand, most homes are listed for just nine days before being sold.

Charlotte, NC

North Carolina is one of America’s most popular moving destinations. Internal migration from states such as Florida, New York, Virginia, and South Carolina was responsible for half the state’s growth last year. The majority of new arrivals settled in Charlotte. Its thriving economy has made it a popular spot for skilled professionals. The city is not only the second largest financial hub in the United States, but a major center for the healthcare, logistics, and technology industries.

Charlotte’s rising population has fueled housing development in its urban core and surrounding suburbs, which has kept the market competitive for buyers and sellers. House prices are expected to surge 3.2 percent this year. The typical home remains on the market for around twenty days.

St. Louis, MO

St. Louis has some of the most affordable housing in the country. Sale prices for new homes are roughly half the national average. A diverse economy and urban renewal efforts have helped boost property values Downtown, as well as the Delmar Loop and the Central West End, leading to a slew of new businesses, restaurants, and entertainment attractions. Though home value growth is only expected to grow by 1.9 percent, the market here is incredibly active. Once a home has been listed, it’s normally sold within eight days.

Philadelphia, PA

Despite rising demand, home prices in Philadelphia are well below the rest of the nation. Combined with its diverse economy, the city has become an attractive option for job seekers looking to escape the high cost of living in New York and Boston. New construction hasn’t kept up with the influx of workers. As a result, the city is experiencing a minor housing shortage, which is why analysts predict home values will rise by up to 2.6 percent this year. The lack of housing means most listings only remain on the market for eleven days.

Hartford, CT

During the pandemic, remote workers moved away from large cities to small, suburban communities. Though Hartford is a mid-sized town, it benefitted from this trend. New Yorkers and other Connecticut residents are coming here in search of larger, more comfortable living spaces. The stable job market has also attracted professionals looking for a career in finance, insurance, and business services. Home values in Hartford are likely to rise an astonishing 7.2 percent in 2025, fueled by an active real estate market where it only takes seven days to sell a house.

Providence, RI

The economy of Providence is centered on a number of lucrative industries, such as healthcare, manufacturing, and software development. As fresh workers arrive to fill gaps in the expanding economy, the city has struggled to keep pace with demand. Part of the issue is the large student population. There are over 11,000 students enrolled in Brown University and the Rhode Island School of Design, both located near downtown.

Their presence has created a strong rental market and as a result, developers invest more in apartment buildings than they would in comparable cities, leading to relative scarcity in single-family homes. Property values surged by seven percent last year, but are only expected to rise by 3.7 percent this year. If you find a house you like, place a bid right away. Most listings only stay on the market for about twelve days.

Indianapolis, IN

People have been moving to Indianapolis to escape high-cost areas in Illinois, Ohio, Kentucky, and Michigan. Heightened demand has raised housing prices throughout the city. As construction falls behind population, property values will likely increase by 3.4 percent over the coming months. Despite this, the city is still a buyer’s market. Though housing costs are going up, they’re still low compared to most major cities and homes spend two weeks on the market instead of just a few days.

Buffalo, NY

Buffalo was the hottest housing market of 2024. Home values surged by an impressive 5.8 percent. Though it’s unlikely homeowners will see the same level of returns this year, values are expected to rise by another 2.8 percent. Though still relatively small compared to other northeastern cities, Buffalo has grown significantly over recent years thanks to its revitalized economy, centered on technology, healthcare, and education.

The city has also upgraded its infrastructure, waterfront, and downtown core, which has made the area more attractive to families and businesses. A good location for first-time home buyers, the average house sells for $135,000 below the national average and takes 12 days to go from being listed to pending sale.

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