A gorgeous city in Arizona with a booming job market has been ranked among the top ten housing spots for 2025.
The National Association of Realtors revealed the top ten picks for the 2025 housing hot spots, including Phoenix-Mesa-Chandler which boasts a booming job market as well.
Phoenix boasts a relatively low cost of living as well as housing affordability, with the average home value sitting at $414,977, according to the report.
It’s job market boomed at nearly 12 percent growth since 2019 and became an attractive migration spot for those coming from California.
The NAR added: ‘This combination of demographic shifts and economic expansion has established Phoenix as a prosperous and dynamic market.’
Nationally, the organization predicted that existing-home sales to reach 4.5 million come 2025 and while prices will continue to increase, they are expected to be at a much slower rate of around two percent.
The median existing-home price is projected to sit at $410,700, and mortgage rates are expected to see some relief and stabilize near six percent.
‘Homebuyers will have more success next year,’ NAR Chief Economist and Senior Vice President of Research Lawrence Yun said. ‘The worst of the affordability challenges are over as more inventory, stable mortgage rates and continued job growth pave the way for more Americans to achieve homeownership.’
San Antonio in Texas saw the second-best job market out of the NAR’s top choices, with 10.7 percent growth since 2019. The average home in the city sits at $250,834, making it one of the few markets to see a decrease in real estate costs over the past year.
Phoenix boasts a relatively low cost of living as well as housing affordability, with the average home value sitting at $414,977. It’s job market boomed at nearly 12 percent growth since 2019 and became an attractive migration spot for those coming from California
San Antonio in Texas saw the second-best job market out of the NAR’s top choices, with 10.7 percent growth since 2019. The average home in the city sits at $250,834
Knoxville, Tennessee, saw strong levels of migrators, nearly 50 percent, chose to buy a home
Another southern city made the list as Knoxville, Tennessee, saw strong levels of migrators, nearly 50 percent, chose to buy a home. While few borrowers hold mortgage rates below six percent, the report said: ‘At the same time, homeowners in Knoxville have built substantial wealth, with home prices now nearly double their pre-pandemic levels.’
Indianapolis, Indiana, also made their top choices with nearly 42 percent of housing stock priced below $236,000 and the average home valued at $223,261.
The area also saw substantial job growth of 9.3 percent, and coupled with the low prices the area is dubbed especially attractive to first-time buyers and young families.
‘With fewer “locked-in” homeowners than the national level, this area is likely to see more available inventory as mortgage rates stabilize next year,’ the report said.
With 43 percent of homes sitting at $324,000 and 10.1 percent job growth over the last few years, Charlotte, North Carolina-South Carolina, was also dubbed one of the NAR’s top choices.
It also boasts an average interest rate of 7 percent, and aging homes expected to ensure sustained demand for housing.
The report declared that Charlotte’s ‘economy and housing market are poised for continued growth.’
Grand Rapids, Michigan, was reported to offer a ‘unique combination of affordability and promising long-term prospects.’
Indianapolis, Indiana, also made their top choices with nearly 42 percent of housing stock priced below $236,000 and the average home valued at $223,261
Charlotte, North Carolina-South Carolina, boasts an average interest rate of 7 percent, and aging homes expected to ensure sustained demand for housing
Grand Rapids, Michigan, was reported to offer a ‘unique combination of affordability and promising long-term prospects’
With 12 percent of households entering prime homebuying age, the NAR predicts that the demand for housing will stay strong.
Boston-Cambridge-Newton, Massachusetts-New Hampshire, also made their top choices despite average home prices sitting at $694,494.
However, the report states that Boston’s housing market are expected to see significant benefits from stabilizing mortgage rates.
‘Additionally, Boston’s mortgage rates have been relatively lower than the national average, which provides a competitive edge in today’s challenging financing environment,’ the report said.
Another from South Carolina, Greenville-Anderson was hailed as the city that ‘checks off the most criteria on NAR’s top 10 list,’ with strong migration rates and affordability.
‘The metro’s average mortgage rate of 6.9% in 2023 is well below the national average, providing additional relief for buyers,’ the report said.
Greenville, with homes averaging $307,315, also has 42 percent of homes categorized as starter-homes and 43 percent of movers buying homes.
Kansas City, Missouri-Kanas, was another top choice by the NAR, with a generally lower average mortgage rate of 6.9 percent and smaller share of locked-in homeowners.
Boston-Cambridge-Newton, Massachusetts-New Hampshire, also made their top choices despite average home prices sitting at $694,494
Greenville-Anderson, South Carolina, was hailed as the city that ‘checks off the most criteria on NAR’s top 10 list,’ with strong migration rates and affordability
Kansas City, Missouri-Kanas, was another top choice by the NAR, with a generally lower average mortgage rate of 6.9 percent and smaller share of locked-in homeowners
Hartford, Connecticut, offers a favorable financing environment, according to the NAR’s report. With an average mortgage rate of 6.5 percent in 2023
The average house is priced at $233,826, leaving one in three Millennial renters able to afford home ownership.
‘This affordability combined with its competitive financing environments, makes Kansas City a key player among top-performing housing markets in the coming year,’ the report said.
Finally, Hartford, Connecticut, offers a favorable financing environment, according to the NAR’s report. With an average mortgage rate of 6.5 percent in 2023, the city held one of the lowest among the top markets while enhancing affordability for buyers.
‘Additionally, Hartford holds the highest proportion of homeowners surpassing the area’s average tenure of 17 years, indicating a potential increase in local inventory, which could help alleviate supply constraints,’ the report added.
While housing shortages remain a long-term limitation, the NAR believes inventory for homes will gradually improve from a combination of new construction projects and homeowners deciding to list their properties.
‘Lower [mortgage] rates can significantly benefit homebuilders by reducing financing costs and boosting market confidence,’ the report added. ‘This is expected to lead to increased construction and housing starts approaching the historical average annual level of 1.5 million units in the next couple of years.’
