Realtor.com Predicts Housing Market Growth in 2025 with Regional Hotspots

Experts forecast increased inventory, steady mortgage rates, and rising home prices, with the South and West leading activity.

Realtor.com's 2025 forecast predicts U.S. home prices will grow by 3.7%, following a 4% increase in 2024.
Housing inventory is expected to rise by 11.7%, potentially easing competition and providing buyers with more options.
Mortgage rates are projected to stabilize above 6% in 2025, with gradual declines anticipated but not guaranteed.
The top 10 housing markets for 2025, concentrated in the South and West, include Colorado Springs, Miami, and Virginia Beach, driven by affordability and new construction.
Rents are forecasted to slightly decline nationwide as a construction boom increases the availability of multifamily units.