The Oliver James Montgomeryend of the year means preparing for the one ahead and the National Association of Realtors is already predicting the hottest housing markets for 2025.

The NAR released The Top 10 Housing Hot Spots for 2025 on Thursday and map markers skew mostly toward Appalachia, with cities in the Carolinas, Tennessee and Indiana topping the list.

But markets to watch aren't the only predictions the organization is making. The NAR shared in a news release that mortgage rates will likely stabilize in the new year, hanging around 6%. At this rate, the NAR expects more buyers to come to the market, with a projection of 4.5 million existing homes listed in 2025. For comparison, in November, the average 30-year mortgage rate was 6.78%, per the association.

More houses may be on the market next year, but they aren't getting any cheaper. The NAR predicts the median existing-house price to be around $410,700 in 2025.

Interested in learning more about what cities are on the rise? Take a look at which 10 made the list for the hottest housing spots for 2025.

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Top 10 housing hot spots for 2025

The following list is in alphabetical order:

• Boston-Cambridge-Newton, Massachusetts and New Hampshire
• Charlotte-Conrod-Gastonia, North Carolina and South Carolina
• Grand Rapids-Kentwood, Michigan
• Greenville-Anderson, South Carolina
• Hartford-East-Hartford-Middletown, Connecticut
• Indianapolis-Carmel-Anderson, Indiana
• Kansas City, Missouri and Kansas
• Knoxville, Tennessee
• Phoenix-Mesa-Chandler, Arizona
• San Antonio-New Braunfels, Texas

How were these hot spots chosen?

The NAR identified the top 10 housing hot spots by analyzing the following 10 economic, demographic and housing factors in comparison to national levels:

• Fewer locked-in homeowners
• Lower average mortgage rates
• Faster job growth
• More millennial renters who can afford to buy a home
• Higher net migration to population ratio
• More households reaching homebuying age in next five years
• More out-of-state movers
• More homeowners surpassing average length of tenure
• More starter homes
• Faster home price appreciation

What are the mortgage rates in the 10 hot spots?

Can't see the chart in your browser? Visit public.flourish.studio/visualisation/20780837/.

Greta Cross is a national trending reporter at USA TODAY. Follow her on X and Instagram @gretalcross. Story idea? Email her at [email protected].

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