The 31 Most Sought-After Housing Markets in 2025 — And the Sun Belt's Notable Absence

Despite the notable lull in the U.S. housing market, certain cities continue to draw substantial interest from buyers hopeful for reductions in mortgage costs and property prices. These areas stand out amidst the broader market stagnation.

Starting the year with a typically subdued real estate season, home values have decreased by about 2.2% from the last year, as noted in recent findings by Realtor.com. Part of this drop can be attributed to mortgage rates climbing beyond 7% for the first time in several months. Though current borrowing rates have nudged down to 6.9%, they remain higher than early 2024's 6.6% rate.

Many prospective homeowners are eager but restrained by high borrowing costs, waiting for both falling rates and declining home prices. This stalemate means reduced property values are insufficient to draw more buyers and simultaneously disappoint existing homeowners.

Hannah Jones, an economic analyst with Realtor.com, explains the buyer predicament, highlighting that many cannot afford standard housing due to the affordability crisis spurred by these economic conditions.

An increased supply of homes is also putting downward pressure on prices. A construction boom has led to a significant 24.6% rise in active listings since last January. The plethora of choices available makes buyers more selective as they browse the housing market.

Thaw in Certain Regional Markets

Despite higher mortgage rates historically being a challenge, many buyers have not been deterred from exploring a selection of dynamic real estate markets this year.

Realtor.com has rolled out its latest ranking of the most active housing markets in the U.S. These rankings consider both the time properties remain listed and their popularity, gauged by site traffic. Cities with more unique property views achieve higher rankings.

The top 20 most vibrant real estate locations boasted 2.6 times the typical demand of U.S. homes last month, with properties being snapped up around three weeks quicker than the national average. This strong engagement translated to a 1.5% price increase from January of the previous year.

What's striking is the concentration of popular markets in the Northeast and Midwest, diverging from 2024 trends dominated by Southeastern cities. Northeast and Midwest regions have remained strong since mid-2022 amidst rising mortgage rates.

Driven by Affordability

According to Jones, the Midwest and specific Northeast locales offer affordability that appeals widely due to their relatively low-cost properties and favorable local income comparisons.

Though some markets remain expensive compared to the U.S. median home price of $400,500, they offer relative bargains compared to their neighboring metropolitan areas. For instance, Manchester, New Hampshire, the top city on January’s list, had a median home price notably more affordable than nearby Boston.

The exodus from larger cities often leads buyers to cheaper adjacent markets, ironically driving those prices upward through heightened demand.

Interestingly, these affordable markets continue to experience limited inventory levels compared to pre-pandemic times, sparking intensified interest in limited listings.

Sun Belt's Decline

Absent from the ranked list is the Sun Belt area, once a pandemic boom region but now facing more stabilized, leveled-out property costs due to increased supply.

During the pandemic's peak, these markets saw an unsustainable rise in prices which, coupled with elevated mortgage rates, led to diminished buyer participation. Although prices remain elevated in many Sun Belt areas, the market now features an abundance of listings.

In the exciting regions previously mentioned, property listings have increased by 12.7% recently, yet this increase is nearly half of the overall national median rate, underscored by their lower pre-pandemic levels.

Top 31 Markets by Viewership and Pricing

Analysis of Realtor.com's data by Business Insider reveals that all 31 most favored cities in January belong to the Northeast and Midwest, with 22 offering prices below the U.S. median.

Here’s an overview of these markets, showcasing property viewership proportions relative to the national median, average durations on the market, historical comparisons, listing prices, and savings or costs against the median U.S. price of $400,500.

1. Manchester, New Hampshire

Viewership: 3.6x; Market Days: 46; Last Year: 44; Price: $578,975; Deviation: -$178,475

2. Hartford, Connecticut

Viewership: 4.1x; Market Days: 51; Last Year: 53; Price: $408,375; Deviation: -$7,875

3. Kenosha, Wisconsin

Viewership: 2.9x; Market Days: 45; Last Year: 45; Price: $334,675; Deviation: $65,825

4. Norwich, Connecticut

Viewership: 3.1x; Market Days: 52; Last Year: 51; Price: $384,450; Deviation: $16,050

5. Worcester, Massachusetts

Viewership: 2.6x; Market Days: 50; Last Year: 45; Price: $527,425; Deviation: -$126,925

6. Concord, New Hampshire

Viewership: 3.5x; Market Days: 53; Last Year: 58; Price: $541,200; Deviation: -$140,700

7. Rockford, Illinois

Viewership: 3x; Market Days: 53; Last Year: 56; Price: $235,450; Deviation: $165,050

For an extensive breakdown, the insights gleaned from this data evaluation will be further detailed in a forthcoming comprehensive report.