Housing News

Where Homebuyers Are Heading: The 20 Hottest Housing Markets of Early 2025

If you’ve been home hunting lately, you’ve probably noticed that some cities are sizzling with activity.

In January 2025, the hottest housing markets in the nation were in the Northeast and Midwest, where demand is high and homes are selling fast, according to a Realtor.com report. (Metros include the main city and surrounding towns, suburbs, and small cities.)

Topping the list—once again—is Manchester, N.H., a perennial favorite on the list. The city blends urban amenities, like restaurants and nightlife, with small-town charm.

So, what’s driving demand in these markets? Let’s break it down.

Why homebuyers love this tiny New England city

Manchester topped the list of the nation’s hottest markets, which Realtor.com publishes monthly, for the 32nd time since 2017.

Just an hour north of Boston, Mass., this metro area is a magnet for buyers seeking more space and affordability without sacrificing proximity to a major city.

Local real estate broker Pamela Young, of eXp Realty, chalks Manchester’s enduring appeal up to affordability.

“[Manchester offers] reasonable prices on homes with more land, great schools, no income tax, and no state sales tax,” said Young. “You can probably buy a similar home in Massachusetts, but you’ll pay more.”

Indeed, homes in Manchester had a median price of $579,000, while homes in Boston were an eye-watering $799,000, according to Realtor.com data.

In January, properties in the Manchester area received 3.6 times more views than the national average, with home prices rising 2.5% compared to last year, according to the report.

The Northeast and Midwest markets are attracting buyers

Markets in the South and West, which generally boast warmer climes, did not make the top 20 Hottest Markets list. Indeed, the Northeast and Midwest have become the places to be, with 11 Northeastern and eight Midwestern metros claiming all the spots on Realtor.com’s January list.

Hartford, Conn. snagged the second spot in the ranking, drawing more than four times the national average in property views. The median home list price was $408,000 in January, according to Realtor.com data.

The Midwest’s Kenosha, Wis., came in at No. 3, with median home prices at a wallet-friendly $335,000.

What’s drawing buyers to these two regions of the U.S.? Affordability, vibrant communities, and strong job markets seem to be attracting home shoppers who might have been priced out of other regions.

What homebuyers and home sellers need to know

For buyers, navigating these competitive markets means having your financial ducks lined up so you can make a strong offer.

With that in mind, having a mortgage pre-approval in hand will put you in the best position to rise above the competition.

Sellers, meanwhile, are in a great position to capitalize on rising prices and high demand. If you’re thinking about selling, now might be the perfect time. Homebuyers are coming from far and wide to nab homes in the hottest markets.

“I’ve had buyers from Oklahoma, Arizona, Texas, Florida, and even Hawaii,” said Young.