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Introduction

As 2025 kicked off, mortgage rates climbed to a recent peak of 7.04% before falling to roughly 6.6% and hovering around this level through much of March and April. Mortgage rates have been remarkably stable amid a rather tumultuous period of policy decisions and revisions. Though improving mortgage rates inspired some buyers to get into the market, growing economic uncertainty stifled potential progress. The latest read on home purchase sentiment showed a sharp uptick in consumer concern over job security, which could impact the market into the peak homebuying season.

Consumer prices fell in March and annual price growth fell to 2.4%, the lowest inflation reading since September 2024. Easing inflation and steady job growth in March point to a stabilizing economy, which would suggest more interest rate cuts. However, the Trump administration’s tariff announcement and eventual pause sent both the stock and bond markets reeling, shaking the confidence of investors and consumers alike. Households could struggle with making significant financial decisions, including buying or selling their home, while the path forward seems unclear. Moreover, tariffs on construction inputs, such as lumber, could result in higher-priced homes.

First-time buyers and lower-budget buyers are disproportionately affected by high housing costs. As a result, affordable metros, especially in the Midwest, continue to see significant demand. Northeast markets that are either outright affordable or priced lower than nearby metros have also been especially busy over the last few years. High housing costs have also pushed the age of today鈥檚 typical homebuyer higher, with older buyers and repeat buyers more likely to find success in the market. Buyers continue to look for bang for their buck, hoping to get the most they can out of a home purchase given still-high housing costs.听

Spring 2025 Housing Market Ranking

As the spring housing market gets in full-swing, home shoppers enjoy more for-sale options than in any month back to mid-2020. However, there is a bit of a mismatch between where buyers are looking and where inventory is building. The highlights in-demand metros that are competitive, but with good reason as they offer shoppers a lower cost of living, including for homes, in or near economic hubs. This quarter鈥檚 top market, Toledo, Ohio, has seen strong demand, a snappy market pace and significant price growth over the last year. Toledo had a median listing price of $235,000 in March, almost $200,000 lower than the national median.听

The ranking identifies markets that those considering a home purchase should add to their shortlist鈥搘hether the goal is to live in it or rent it as a home to others. We reviewed data for the largest 200 metropolitan areas in the United States. The Spring 2025 ranking surfaced the following top areas:

The Midwest Dominates with Low Cost of Living, Low Home Prices, and Climate Resiliency

The Midwest boasts affordability, a low cost of living, and climate resiliency, all of which contribute to its presence on the Housing Market Ranking list. Four of the twelve Midwest markets on this month鈥檚 list boasted an unemployment rate below the national level of 4.2% in March. Milwaukee (3.8%), Appleton (3.1%), Fort Wayne (4.1%) and Green Bay (3.3%) have strong labor markets and affordable costs of living. Life鈥檚 necessities cost an average 7.0% less than the national level in these metros specifically, and 8.6% less in the Midwest markets in the top 20 in general.听

Home prices follow the trend of lower costs in the Midwest. The list鈥檚 lowest-priced market is Youngstown-Warren, OH, where the median listing price was $185,000 in March. The list鈥檚 Midwest markets had an average listing price of $296,000 in March, more than $125,000 below the national median. Only Appleton and Green Bay were priced higher than the U.S. median. These low home prices mean that the minimum recommended income to purchase in one of these markets was an average $68,000, compared to the U.S. minimum recommendation of $98,000.

As home shoppers look to minimize housing costs and the risk of unexpected expenses, recent weather events, such as the devastation from wildfires in southern California and from hurricanes in Florida and North Carolina, are top-of-mind. Though no one can perfectly predict future weather events and be perfectly prepared, climate data can be a useful tool to understand potential risk. The Midwest is not only the most affordable of the U.S. regions, thereby attracting cash-conscious buyers, it also comes with the lowest climate risk among the studied challenges, two factors which contribute to the majority of the top 20 housing markets being in the Midwest.听

In the top ranked market, Toledo, OH, just 1.5% of properties are at severe or extreme risk of experiencing one of the 5 risks considered, over the next 30 years. The top 20 markets saw an average of just 4.7% of properties at risk of damage from climate-related incidents.听

We continue to utilize climate data in the ranking parameters, leveraging data provided by that is currently part of the Realtor.com experience. This data captures the share of properties in a given metro that are affected by severe or extreme exposure to any combination of 5 climate risks鈥� extreme heat, wind, air quality, flood and wildfire鈥搊ver the next 30 years. Nationwide, more than 2 in 5 homes confront at least severe or extreme exposure to at least one of these climate risks.听

Top Metros Have Older Populations, High Demand

On average, 24.1% of the population in the top markets are aged 55 to 74, more than one percentage point higher than the national share of 22.9%. Today鈥檚 housing market sees more older buyers as affordability challenges disproportionately affect younger and first-time buyers. The , the highest in the data鈥檚 history (back to 1981). The median first-time buyer age also reached a new high of 38 years old, underscoring the difficulty of today鈥檚 market for would-be first-time buyers.听

Today鈥檚 homeowners have near-record-high home equity, which many are utilizing to purchase a new home. However, first-time buyers generally do not have access to this source of cash, which has pushed many out of the market for the time being. As a result, today鈥檚 homebuyers skew older, and metropolitan areas with older residents are drawing demand.听

The list鈥檚 highest-priced markets, Manchester-Nashua, Worcester, Green Bay, New Haven, Hartford and Appleton each have a significantly higher share of 55 to 74 year olds than the national average. Despite their relatively high price levels, these markets attracted an average 89.4% more views per property than was typical pre-pandemic in Q1 2025.听

Because higher-end homeowners have substantial equity and are less reliant on mortgage financing, these types of properties have outperformed. Lower-budget buyers are either focused on the country鈥檚 lowest priced metros, many of which are on this quarter鈥檚 list, or have stepped out of the for-sale market altogether. High-budget buyer demand and still-high home prices have led to climbing down payments in the Northeast and falling down payments in the well-supplied, lower-priced South.

Texas and Florida See High Inventory and Low Demand

Metros in Texas and Florida claim the bottom of this quarter鈥檚 ranking, due to a few key factors. Climbing inventory levels have thinned out buyer demand in Texas and Florida, leading to a noticeable correction. Additionally, Texas and Florida metros see high risks of property damage due to climate events, sending their relative rank among U.S. metros lower.听

The quarter鈥檚 lowest-ranking markets are McAllen-Edinburg-Mission, Corpus Christi, San Antonio-New Braunfels, and Killeen-Temple in Texas and Cape Coral-Fort Myers, FL. These markets saw a surge in demand during the pandemic, which drove prices soaring and inventory levels down. Once mortgage rates picked up in 2022, buyer demand cooled in Texas and Florida, allowing inventory levels to recover, and then some.听

The number of homes for sale in these bottom five markets was an average 42.7% higher than pre-pandemic in the first quarter. Despite ample inventory, especially amid low demand, home prices remained an average 35.7% higher than pre-pandemic in these markets. San Antonio stands out with prices only 13.9% higher than pre-pandemic in Q1, but inventory levels were 46.6% higher. High inventory drives views-per-property lower and pushes time-on-market higher, contributing to a lower ranking.

While the top of the quarter鈥檚 list highlights some of the country鈥檚 most in-demand markets, the bottom of the list emphasizes the re-balancing occurring in some of the pandemic鈥檚 hottest housing markets. These markets boast stable employment and relatively affordable cost of living, which could present opportunities for hopeful buyers. Despite still-high prices, sellers are likely to be flexible in these markets, hoping to draw in buyer attention and make a deal work.

City Spotlight: Toledo, OH

Toledo, Ohio climbed 2 spots since last quarter to take the crown. Toledo is located just south of the Michigan border, roughly 60 miles from Detroit and Ann Arbor on Lake Erie. The median listing price in Toledo was $235,000 in March, roughly $200,000 below the national median.听

Toledo is mid-sized with roughly 600,000 residents, but pulled in significant buyer attention in the first quarter of 2025. Almost two-thirds of listing viewers in Toledo were from outside of the metro area, highlighting the appeal of this low-priced market, especially to other Midwesterners. The median listing price in Toledo climbed 17.5% compared to one year prior in March and homes spent 37 days on the market, more than two weeks less than the national median.

Active inventory was 53.3% lower than pre-pandemic in Toledo in the first quarter of 2025. This scarcity drove price growth in the area and home prices climbed 63.7% versus pre-pandemic in the same time period. Homes in Toledo not only attracted more viewers than was nationally typical in Q1, but it also drew 27.4% more viewers per-property than typical in the area pre-pandemic.

Toledo鈥檚 economy primarily revolves around manufacturing, healthcare and education. The unemployment rate in Toledo has climbed over the last couple of years, reaching 6.6% in March 2025, the highest unemployment rate in this quarter鈥檚 Housing Market Ranking top 20 metros. Unemployment climbed due to contraction in the professional and business services, information and manufacturing industries compared to last year. Nevertheless, the relatively affordable cost of living and low housing costs could continue to attract homebuyers.

Toledo Housing Highlights

Toledo Draws Home Shoppers from DC, New York, and Other Large Midwest Metros

Who鈥檚 In, Who鈥檚 Out?

Returning Markets

Eighteen of this quarter鈥檚 top 20 markets were also on last quarter鈥檚 list, highlighting the lack of significant change in the housing market while both home prices and mortgage rates remain stubbornly high.

Markets Falling Out of the Top 20

Two markets fell off of the list between last quarter and this quarter, dropping 12 to 13 spots. The biggest mover was the ever-popular Columbus, Ohio metro, which fell 13 spots this spring. The markets that fell out of the top 20 didn鈥檛 fall far, emphasizing the holding pattern that the housing market is in.

New Markets

Taking the places of the 2 descended markets are one Ohio market and one Connecticut market, joining many of their state companions. Both markets ascended from within the top 50. Though affordable metros reign supreme in today鈥檚 high-priced housing market, New Haven was higher priced than the U.S. market in March. New Haven offers buyers relative affordability within commuting distance of New York City, still appealing affordability-wise even with its relatively high prices.

Methodology

The ranking evaluates the 200 most populous core-based statistical areas, as measured by the U.S. Census Bureau, and defined by for eight indicators across two broad categories: real estate market (60%) and economic health and quality of life (40%). Each market is ranked on a scale of 0 to 100 according to the category indicators, and the overall result is based on the weighted sum of these rankings. The real estate market category indicators are: real estate demand (15%), based on average pageviews per property; real estate supply (15%), based on median days on market for real estate listings; median listing price trend (15%), based on annual price growth over the quarter; property taxes (10%); and climate risk to properties (10%). The economic and quality of life category indicators are: unemployment (5%); wages (5%); regional price parities (5%); the share of foreign born (5%); small businesses (5%); amenities (10%), measured as the average number of stores per specific 鈥渆veryday splurge鈥� category (coffee, upscale/specialty grocery, home improvement, fitness) per capita in an area; and commute time (5%).