GRAND RAPIDS, Mich. — The National Association of Realtors (NAR) has released its list of the top ten housing markets for 2025. One West Michigan city made the list.
Grand Rapids-Kentwood made the list alongside Boston, Phoenix and Charlotte as a standout market in the annual "Housing Hot Spots" report, highlighting the city's emerging potential in the real estate landscape.
NAR Chief Economist Lawrence Yun said that the ten markets on the list share critical characteristics, including affordable inventory, potential for lower mortgage rates and strong economic indicators.
For Grand Rapids, this recognition underscores the region's growing economic vitality and attractiveness to potential homeowners. Yun said it could even indicate that home buyers will see more luck in the coming year.
“Home buyers will have more success next year,” said Yun. “The worst of the affordability challenges are over as more inventory, stable mortgage rates and continued job and income growth pave the way for more Americans to achieve homeownership.”
The NAR's broader 2025 housing market forecast predicts:
- Mortgage rates stabilizing around 6%
- 4.5 million existing home sales
- Home prices increasing by approximately 2%
- Median existing home prices reaching $410,700
For Grand Rapids, this forecast could mean continued opportunity in the local housing market, with potential for increased inventory and more accessible homeownership for young professionals and families.
The methodology NAR used to create the hot spots list analyzed ten key economic, demographic and housing factors. Those factors include job growth, millennial renter affordability, net migration and home price appreciation. Grand Rapids' presence on this list signals its emergence as a competitive and promising real estate market.
As the housing market continues to evolve, Grand Rapids is looking like it could be a bright spot for those looking to invest, relocate or enter the housing market in 2025.
