San Antonio Picked as 2025 Realty Hot Spot

SAN ANTONIO – (By Dale King, Realty News Report) A lengthy report just released by the National Association of Realtors has pinpointed the “top 10 hot spots” likely to excel in the 2025 housing market based on economic, demographic and housing factors specific to the real estate field.

The San Antonio-New Braunfels metro area shows up prominently on that high-ranking roster of metro areas expected to perform estimably in the coming year, said the online document called “Housing Hot Spots for 2025: Top Markets Amid Stabilizing Rates.”

NAR Chief Economist and Senior Vice President of Research Lawrence Yun announced the 10 metropolitan regions likely to top out the market excellence list during NAR’s sixth annual “Real Estate Forecast Summit: The Year Ahead” held in mid-December.

“Important factors common among the top performing markets in 2025 include available inventory at affordable price points, a better chance of unlocking low mortgage rates, higher income growth for young adults and net migration into specific metro areas,” he noted.

Yun said the named urban centers offer a favorable financing environment, either with lower mortgage rates or fewer locked-in homeowners (folks who won’t sell their residences for fear of losing their very low mortgage rate).

“Is Anybody Going to San Antone?” – Country Singer Charley Pride

In addition to San Antonio – the south-central Texas metro center populated by a million and a half people – the hot 10 metro regions include:

Boston-Cambridge-Newton, Massachusetts-New Hampshire

Charlotte-Concord-Gastonia, North Carolina-South Carolina
Grand Rapids-Kentwood, Michigan
Greenville-Anderson, South Carolina
Hartford-East-Hartford-Middletown, Connecticut
Indianapolis-Carmel-Anderson, Indiana
Kansas City, Missouri-Kansas
Knoxville, Tennessee
Phoenix-Mesa-Chandler, Arizona

The NAR report focuses on the San Antonio-New Braunfels area because “The Texas Triangle couldn’t be left off this list,” states the report.

Why? For one thing, “borrowers in San Antonio were able to secure mortgage rates well below the national average in 2023, at 6.4 percent. This suggests that buyers in the area benefit from a combination of local market dynamics that lead lenders to assess lower risk in this area.”

“Additionally, San Antonio has experienced one of the strongest rates of job creation since pre-pandemic levels, which continues to draw new residents to the area.”

The South leads with four of the 10 housing hot spots followed by the Midwest with three.

The Realtor group chose the top 10 “hot spots” based on each metro’s recent performance on NAR’s list of 10 criteria. The factors chosen this year are anticipated to be influential in shaping local housing markets as mortgage rates stabilize in 2025.

All 10 selected metros fared better than average on half or more of NAR’s standards. San Antonio-New Braunfels outdid itself in seven of the association’s 10 categories, the report said, and also beat out the national average on at least the same number. These include:

Lower average mortgage rates than the national level (6.4 percent. U.S. average is 7 percent) “If borrowers in an area can secure a lower mortgage rate, this could help more buyers to be able to qualify for a mortgage with smaller payments.”
Faster job growth than the national level. (10.7 percent. U.S. average is 5 percent.) “Areas with faster job growth allow more people to set their sights onto homeownership, further stimulating housing demand.”
More millennial renters who can afford to buy a home than the national level. (30.7 percent. U.S. average is 29.7 percent) “Areas where more millennials can afford homes are likely to see increased demand, especially for entry level and starter homes, boosting local activity.”
Higher net migration to population ratio than the average level. (1.3 percent. U.S. average is .5 percent) “This usually boosts activity while also making home prices increase faster if supply doesn’t keep pace with demand.”
More households reaching home buying age in the next five years than at the national level. (11.6 percent. U.S. average is 10 percent) “Areas with a larger share of households entering this age bracket can expect stronger long-term demand for homes, affecting new construction and market stability.”
Share of out-of-state residents buying homes. (39 percent. U.S. average is 35.3 percent) “A higher share of movers choosing to purchase homes indicates long-term growth and stability for the local housing market.”
Share of starter owner-occupied units than national average. (40.5 percent. National average is 38.9 percent) “Areas with more starter-home inventory provide greater accessibility for younger or lower-income buyers, driving demand and creating a more affordable market.”