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15 Hottest U.S. Housing Markets To Watch Right Now [Jan 2025]

You can build equity fast in these markets but you have to make your move quickly.

By Heather Bien

Edited by Lauren Wellbank

Updated Jan. 5, 2025

Want to set yourself up for financial independence down the line? One of the fastest ways to build wealth is to put yourself in the best position to tap into home equity in the future. And how do you do that? By buying in a hot real estate market before it hits its peak.

Often, these hot real estate markets have pockets of yet-to-be-discovered areas where the real estate hasn’t yet skyrocketed, but soon will. If you can get in at the right time, you may have the opportunity to buy low and sell high at a later date.

To determine which are the hottest U.S. housing markets right now, we looked at the median listing price data year-over-year on Realtor.com from November 2024, and then we broke out the top 15 major metropolitan areas where prices are continuing to go up, despite slowdowns in other regions.

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Las Vegas-Henderson-Paradise, Nevada

Median days on market: 55

Median listing price: $470,000

The median home price is up 1.6% year-over-year in the Las Vegas area, and that comes with both low taxes and a low cost of living.

It’s not all shows and neon lights here. It’s also a liveable area with big city amenities and quick access to some of the most stunning national and state parks in the country. But, you do have to be prepared for a desert climate.

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Birmingham-Hoover, Ala.

University of Alabama at Birmingham campus

Median days on market: 59

Median listing price: $299,000

Median home prices are up a modest 1.7% year-over-year in the Birmingham area, but it’s still a good place to invest if you’re looking to build equity fast.

This Southern city is filled with potential, and new restaurants and businesses are opening up regularly, though the cost of living has remained affordable.

There’s a strong cultural scene here, and the city is both deeply connected to its history and doesn’t shy away from it. They work to make their civil rights history a central part of the city’s story.

Riverside-San Bernardino-Ontario, California

Median days on market: 57

Median listing price: $599,000

California isn’t known for being affordable, but if you invest in the Riverside-San Bernardino-Ontario area, you will see your equity rise. The median home price is up 2.4% year-over-year.

This area is a great alternative to more expensive cities like Los Angeles, but you’ll still get the sunny weather, laid-back attitude, and access to gorgeous California beaches. Plus, there’s a vibrant local business scene, which means there’s no shortage of jobs across industries in this area.

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Providence-Warwick, Rhode Island-Massachusetts

downtown Providence River in Rhode Island

Median days on market: 41

Median listing price: $539,900

The median home price is up 2.5% in the Providence area year-over-year, so if you’re looking to invest in the region, this is a great place to find a slightly more affordable home than you’ll see in areas like New York and Boston.

There’s a great children’s museum, lots of parks, and a great restaurant scene. Plus, you’re a quick drive to other major cities.

Louisville/Jefferson County, Kentucky-Indiana

City Of Louisville Kentucky On Ohio River

Median days on market: 44

Median listing price: $309,245

Louisville is a city with a long history, and it’s beginning to see a resurgence. The median home price is up 3.1% year-over-year.

You’ll find an affordable cost of living compared to major metropolitan areas, and it’s a great city if you’re looking for an older home in an established neighborhood that you can make your own. There’s great food — and of course great bourbon — in this region.

Charlotte-Concord-Gastonia, North Carolina-South Carolina

Median days on market: 55

Median listing price: $428,750

The greater Charlotte metropolitan region is continuing to draw in new residents from across the country thanks to its liveability and affordability, and the median home price is up 3.3% year-over-year.

There is plentiful housing in this area, particularly if you’re looking for a new build, and you’ll enjoy all the big city amenities, including great restaurants, professional sports teams, and vibrant new mixed use developments.

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New York-Newark-Jersey City, New York-New Jersey

Median days on market: 60

Median listing price: $750,000

While you’re not going to get a deal here, the New York metropolitan area is a consistently hot market.

Prices are up 3.3% year-over-year, and the further you get from the city, the more likely you are to find a house that is more within the affordable realm. You know your investment will be worth it in the long run since it’s unlikely that prices will ever fall here — people will always want to be near the buzz of New York City.

Virginia Beach-Norfolk-Newport News, Virginia

Median days on market: 44

Median listing price: $389,900

Move to the Hampton Roads area, and you’ll find median home prices up 3.4% year-over-year. This region encompasses Norfolk, which is a historic city with a major military presence, and Virginia Beach, where you’ll find outdoor recreation and miles of beaches.

The entire area makes up the most populated region in the state of Virginia, so, while you’re not far from Washington, D.C. and Richmond, you’ll find everything you need here.

Memphis, Tennessee

Median days on market: 66

Median listing price: $333,845

Head to the Home of the Blues, and you’ll find median home prices up 4.4% year-over-year.

This Tennessee city is a great place to invest if you’re looking for an affordable cost of living paired with a rich cultural heritage and a vibrant food scene. There’s history, music, and an enthusiastic sports fan base.

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Detroit-Warren-Dearborn, Michigan

Median days on market: 44

Median listing price: $260,000

Median home prices are up 5.3% year-over-year in the Detroit area, and, while it’s had a reputation as a city in decline for the past few decades, things are starting to turn around.

More businesses are coming in, creative entrepreneurs are opening restaurants, and people are discovering that it’s possible to buy a house for an affordable price if you have the skills, money, and time to fix it up and make it your own.

St. Louis, Missouri

Median days on market: 51

Median listing price: $289,900

Home prices in St. Louis are rising year-over-year, with the median listing price up 5.4% since 2023. In St. Louis, you’ll find a big city with history and established neighborhoods, but a cost of living that’s less than other major metropolitan areas.

There are fabulous museums, sports, a strong healthcare system, and the headquarters for multiple Fortune 500 companies. This is a great place to put down roots if you’re looking for an affordable place to invest.

Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey-Delaware

Median days on market: 47

Median listing price: $372,500

The median listing price in the Philadelphia-Camden-Wilmington area is up 6.5% year-over-year, which means this region is a great place to invest if you want close proximity to major cities without living directly in New York or Washington, D.C.

Here you’ll find everything from history to major sports teams to culture, all within a short drive. Plus, the area’s train system is very robust, so it’s easy to travel between regions.

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Milwaukee-Waukesha, Wisconsin

Riverwalk Pubs and Restaurants Milwaukee Wisconsin

Median days on market: 37

Median listing price: $365,000

Prices are steadily climbing in Milwaukee, where the median listing price is up 6.6% year-over-year. Compared to other major metropolitan areas, the cost of living in Milwaukee is lower — it’s only 1% higher than the national average.

If you can cope with the cold winters, you’ll find everything from the arts to major-league baseball in this midwestern town.

Cleveland-Elyria, Ohio

Median days on market: 45

Median listing price: $249,900

The median listing price in the Cleveland-Elyria area is up 10.9% year-over-year, making it an area where you might be able to see a big payoff if you get in now.

This midwest city hasn’t always been the hot spot to live but, in recent years, it’s seen major revitalization in its downtown areas, and restaurants and craft breweries have been moving in.

Rochester, New York

Median days on market: 49

Median listing price: $267,450

The market with the biggest year-over-year jump in median listing price is Rochester, with an increase of 11.7%. This upstate New York city offers a low cost of living but with all the amenities of a city with a major university, including a great healthcare system.

You’ll have to get used to the cold in the winter, but summers here are reason enough to move. Plus, you’re also just a quick hop over to Canada and Lake Ontario.

Bottom line

If you’re looking for clever ways to help pay for your mortgage and you’re in a hot market, you can also explore renting out your home when you’re not using it.

Hot markets often translate into hot places to visit, and that means listing your house as a short-term or mid-term rental could be a smart money move for homeowners looking to make an extra buck.

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Las Vegas-Henderson-Paradise, Nevada

Birmingham-Hoover, Ala.

Riverside-San Bernardino-Ontario, California

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Providence-Warwick, Rhode Island-Massachusetts

Louisville/Jefferson County, Kentucky-Indiana

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Charlotte-Concord-Gastonia, North Carolina-South Carolina

New York-Newark-Jersey City, New York-New Jersey

Virginia Beach-Norfolk-Newport News, Virginia

Memphis, Tennessee

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Detroit-Warren-Dearborn, Michigan

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Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey-Delaware

Milwaukee-Waukesha, Wisconsin

Cleveland-Elyria, Ohio

Rochester, New York

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