Housing markets with economic vitality and strong demographics are poised for growth in 2025. According to a new report from the National Association of Realtors, 10 cities with a combination of favorable financing conditions, low rates of locked-in homeowners, and strong demographic trends, are positioning themselves to be top performers for the year ahead. These cities have all been identified for their resilience and potential, as they outperform national averages in key housing market metrics, including inventory availability, job growth, and affordability.

The stabilization of mortgage rates near 6% is helping to fuel demand, particularly in markets where a high proportion of homeowners are not tied to low-rate mortgages. Cities like Boston, Grand Rapids, and Hartford stand out, where inventory is expected to increase as more homeowners look to sell in the coming year. This is crucial for easing supply constraints and providing more options for buyers. Additionally, markets such as Charlotte, Indianapolis, and San Antonio are benefiting from robust job growth and high rates of migration, which are adding to the demand for housing and boosting market stability.

A common thread across these top markets is their strong appeal to first-time buyers. Areas including Charlotte, Greenville, and Kansas City offer a high percentage of starter homes, making them especially attractive to young families and millennials looking to purchase their first home. In fact, nearly 40% of homes in these areas fall within the starter-home category, a key factor driving affordability in an otherwise challenging housing environment.