Top 10 Housing Markets Seeing Incredible Double-Digit Growth in 2025

Most of the housing markets aren't scorching hot anymore. Yet, tucked away in certain corners of the country, there are still spots where prices are not just warming up, they're practically on fire, seeing incredible double-digit growth. Yes, while the overall U.S. housing market has seen a notable slowdown in price appreciation leading into Spring 2025, certain metro areas have defied this trend, becoming the Top 10 hottest housing markets in 2025, according to recent data.

Let's dive into this fascinating shift and understand what's really happening with home prices across the country, and specifically in these unexpected hot spots, based on the latest insights from Cotality.

Top 10 Housing Markets Seeing Incredible Double-Digit Growth in 2025

The Big Picture: A Cooler National Market in Early 2025

If you've been following the news, you've probably heard the housing market isn't quite as frenzied as it was a year or two ago. And the numbers from Cotality for April 2025 certainly back that up. The big takeaway nationally? Home price growth has slowed down significantly.

According to Cotality's U.S. Home Price Insights from June 2025 (which uses April 2025 data), the year-over-year national home price growth was just 2.0%. Let that sink in for a moment. Compare that to the booming years we've seen recently. Cotality's Chief Economist, Dr. Selma Hepp, points out that this 2.0% rate is actually the lowest home price growth in over a decade, specifically the slowest since Spring 2012.

This slowdown isn't happening uniformly. Single-family detached homes, the traditional picture of a suburban home, are still seeing a bit more growth at 2.46% annually. But guess what? Single-family attached homes (think townhouses or condos) actually saw a slight decline of 0.08% year-over-year. This is the first time attached homes have posted an annual decline since way back in 2012. That tells me something important: buyer demand might be shifting, or perhaps the higher price point of detached homes is holding up better, while the potentially more affordable attached market is feeling the pinch of economic headwinds more directly.

So, what's causing this nationwide cool-down? Dr. Hepp and the data point to several factors:

• Economic Worries: People are still concerned about their personal finances and job security. When folks feel uncertain about the future, big purchases like buying a house often get put on hold.
• Interest Rates: While not explicitly detailed in the text provided, higher borrowing costs tied to interest rate changes are a major “headwind” for buying power, plain and simple. It costs more each month to pay off the same amount of mortgage.
• Improved Supply: This is a bright spot for buyers! More homes are available for sale than in the super-tight market of a few years ago. More choices mean less intense bidding wars, which naturally helps keep prices from skyrocketing. Dr. Hepp notes that this increased supply is “providing buyers with more options and helping keep softer price pressures.”

Despite these challenges, Dr. Hepp also offers a touch of cautious optimism. She notes that home prices this spring (early 2025) have “held up” and growth trends “mostly mirrored trends seen pre-pandemic.” This suggests the market isn't collapsing, just returning to a more historically normal pace of appreciation, which is actually encouraging news given the economic worries.

The data also paints a picture of affordability (or lack thereof). The national median home price in April 2025 stood at $395,000. To afford that median-priced home, Cotality estimates you need an annual income of $87,800. For many families, that income requirement is a significant hurdle, adding another layer of pressure on the market.

Regions are also experiencing different fates. While the Northeast and Midwest are showing resilience (more on that in a moment), other areas that saw massive booms are now reversing course. States like Florida, Texas, Hawaii, and Washington D.C. all reported negative year-over-year home price growth in April 2025. This highlights how localized real estate is – what's happening in Miami is very different from what's happening in, say, Indianapolis.

Why Some Markets Are Cooling Off (Florida, Texas, etc.)

It’s worth pausing to look at the markets that are losing value. Cotality provides a list of the “coolest” markets, and it's heavily concentrated in a state that was previously one of the hottest: Florida.

The Top 10 Coolest Housing Markets (Year-over-Year Decline as of April 2025):

• -6.5% Cape Coral, FL
• -6.2% Punta Gorda, FL
• -5.4% Logan, UT
• -5.1% McAllen, TX
• -4.5% Victoria, TX
• -4.3% North Port, FL
• -3.7% Naples, FL
• -3.1% Waco, TX
• -2.7% Lake Charles, LA
• -2.7% Eagle Pass, TX

Dr. Hepp specifically mentions that Florida is “course correct[ing] after years of explosive growth.” This makes a lot of sense to me. Markets that experience massive, unsustainable price surges due to factors like migration influx or speculative investing are often the first to see significant pullbacks when the tide turns. The sheer concentration of declining markets in Florida suggests a statewide adjustment is underway. Cape Coral, Florida, stands out with the largest annual decline at a sharp 7% year-over-year, with prices back to where they were in Spring 2022. This is a clear sign of a market resetting after a very rapid run-up.

Cotality also highlights five markets with a “very high risk of price decline” among the top 100 metro areas, and all five are in Florida: Cape Coral, Lakeland, North Port, St. Petersburg, and West Palm Beach. The graphs showing these markets' price trends reveal rapid increases followed by stagnation or declines in the last year or so, especially evident in Cape Coral and North Port. This reinforces that the Florida slowdown isn't just a minor dip; it's a significant shift for many areas in the state.

Texas also shows up repeatedly on the “coolest” list. While Texas still sees population growth, factors like local supply increases or specific economic conditions in certain metros might be contributing to price declines there.

Top 10 Hottest Housing Markets (Based on Recent 2025 Data)

Now, for the exciting part! Despite the national cooling and regional declines, some areas are bucking the trend with impressive price growth. Cotality's data reveals the markets with the largest year-over-year price gains leading up to April 2025.

Here are the Top 10 Hottest Housing Markets based on their recent performance, according to Cotality:

Rank	Market	Year-over-Year Price Growth (April 2025)
1	Kokomo, IN	+13.4%
2	Decatur, IL	+12.5%
3	Syracuse, NY	+11.1%
4	Weirton, WV	+11.1%
5	New Haven, CT	+10.8%
6	Vineland, NJ	+10.7%
7	Muskegon, MI	+10.2%
8	Lima, OH	+9.8%
9	Evansville, IN	+9.6%
10	Battle Creek, MI	+9.6%

Now, a crucial point based on the prompt's title: while this is the “Top 10 Hottest” list provided by Cotality based on their growth ranking, only the top seven markets on this specific list—Kokomo, IN; Decatur, IL; Syracuse, NY; Weirton, WV; New Haven, CT; Vineland, NJ; and Muskegon, MI—actually achieved double-digit year-over-year price gains as of April 2025 in this report. Lima, Evansville, and Battle Creek are incredibly close and certainly part of the hottest group, just slightly under the 10% mark in this particular data snapshot.

What immediately jumps out at me when looking at this list? It’s heavily concentrated in the Midwest and the Northeast. This aligns perfectly with Cotality's observation that the markets with the largest gains this spring remain in these regions, particularly in “more affordable areas surrounding large expensive metros.”

What Makes These Markets Sizzle? My Take

Why these specific markets? Based on the data and my understanding of real estate dynamics, I believe it boils down to a few key factors:

1. Relative Affordability: Look at these locations: Indiana, Illinois, upstate New York, West Virginia, Connecticut, New Jersey, Michigan, Ohio. Compared to the astronomical prices in major coastal hubs like New York City, Boston, or even Chicago, these areas offer a much lower entry point for homebuyers. My sense is that even with slightly higher interest rates, the absolute cost of a home in Kokomo or Decatur is still within reach for more people than in, say, San Francisco or even parts of Florida that haven't corrected as much.
2. Migration for Value: I suspect we're still seeing a ripple effect from shifts in work patterns (hybrid or remote options) and people seeking better value for their housing dollar. Someone might be able to sell a smaller home in a pricey city and buy a larger one, or one with more land, in one of these more affordable metros, even if they still need to commute occasionally or access a major hub. Syracuse, NY, and New Haven, CT, are classic examples of mid-sized cities in relatively expensive states that offer a more palatable price point than the major metropolitan cores. Vineland, NJ, could be appealing to those priced out of parts of the Philly or even South Jersey markets.
3. Local Economic Stability (or Niche Strength): While I don't have specific economic data for each of these towns from the report, sustained price growth often requires some level of local economic activity. Perhaps some of these areas have stable industries, universities, or are seeing renewed investment that supports demand. Muskegon and Battle Creek in Michigan might be benefiting from manufacturing or logistics sectors.
4. Limited Supply Locally: Even if national supply is improving, these specific smaller markets might still have tight inventories relative to local demand, pushing prices up. New construction might not be keeping pace in these areas.
5. Investor Interest: More affordable markets can also attract investors looking for rental income or potential long-term appreciation without the massive upfront capital required in bigger cities.

It's not just one thing; it's likely a combination. These aren't necessarily booming economic powerhouses (like some cities that saw huge tech-driven growth), but they offer a compelling blend of affordability and perhaps relative stability that is attracting buyers and driving demand even as the national market slows. Dr. Hepp's comment about these being “more affordable areas surrounding large expensive metros” really hits the nail on the head for many of these locations.

Looking Ahead: The Forecast and My Perspective

What does this all mean for the rest of 2025 and beyond? Cotality's forecast offers a peek into the near future. They predict a U.S. home price increase of 4.3% from April 2025 to April 2026.

This forecast suggests that the national market isn't expected to see significant declines overall, but rather a return to more moderate, single-digit growth. This aligns with Dr. Hepp's sentiment that the “solid home price trend” is expected to continue.

Dr. Hepp also notes that “more visibility around tariffs, diminishing concerns about an economic recession, and more homes for sale” could lead to “improved optimism and more activity going forward.” This tells me that if some of the major economic uncertainties ease, the market could see a bit more life, but likely not a return to the rapid double-digit national growth we saw previously. A 4.3% annual increase is still healthy appreciation by historical standards, just not the dizzying pace of the recent past.

From my perspective as someone watching this market closely, here's what I take away:

• National numbers can be deceiving: The 2.0% national growth figure hides massive variations. You must look at local market data to understand what's happening where you live or want to buy/sell.
• Affordability is a driving force: These hottest markets reinforce that buyers are chasing affordability. As long as prices remain high in major metros, nearby or accessible areas with lower costs are likely to see continued interest.
• The Florida/Texas correction is real: The data is clear – after huge booms, some markets in these states are undergoing a significant correction. This isn't necessarily a bad thing long-term, as it can bring prices back in line with fundamentals, but it's painful for recent buyers in those areas.
• Supply is improving, but slowly: While supply is better than it was, it's not like there are suddenly tons of houses everywhere. The increase in options is just enough to take some pressure off, not eliminate it entirely.
• Cautious optimism feels right: The forecast for moderate positive growth seems reasonable. Unless we see a major recession or unexpected shock, widespread price crashes don't appear imminent nationally, but the days of easy double-digit gains are over for most places.

The Bottom Line

The U.S. housing market in early 2025 is a story of two halves: a national picture of significantly slowed growth, returning closer to pre-pandemic norms, alongside specific regional hotspots that continue to sizzle. The Top 10 hottest housing markets in 2025, according to this recent data (specifically the top 7 achieving double digits), are concentrated in the Midwest and Northeast. They appear to be thriving primarily due to their relative affordability compared to larger, more expensive neighbors, attracting buyers seeking value. Meanwhile, markets in Florida and Texas are seeing corrections after periods of explosive growth.

Looking ahead, the forecast suggests continued positive but modest national price growth. For anyone involved in the housing market – whether buying, selling, or investing – understanding these localized trends is absolutely essential. The days of a rising tide lifting all ships equally are behind us, at least for now.