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America’s Hottest Housing Markets

March 17, 2025

Macro Trends

The states most impacted by tariffs on Canada and Mexico link

  • Michigan, Texas, and New Mexico have the highest trade exposure to Canada and Mexico as a share of state GDP. The trade war has increased economic vulnerability in these states.

  • Other highly impacted states include North Dakota, Montana, Illinois, Kentucky, Indiana, Louisiana, and Ohio. Trade with Canada and Mexico is a significant portion of their economic activity.

  • Data is based on 2024 figures from the International Trade Administration and BEA. The ongoing trade war could lead to economic disruption in these key states.

Real Estate Trends

America’s Hottest Housing Markets

  • Hartford, CT, ranked as the hottest market in February with a median list price of $434,000, up 6.6% year-over-year. Homes sold in an average of 38 days — nearly twice as fast as the national average.

  • Philadelphia saw the biggest improvement, jumping 77 spots year-over-year, while New York City and Kansas City improved by 48 and 45 spots respectively. Strong demand and low inventory are driving up prices in these markets.

  • In Paramus, NJ, a five-bedroom home sold for $125,000 over asking after attracting 27 offers in six days. Buyers are paying premiums to secure homes in good locations with high-quality schools and amenities.

  • click on the link to see the rest of the list.

Large Markets with Apartment Rents Below $1,400 link

  • Of the nation’s 50 largest markets, 11 had average asking rents below $1,400 in January, with 6 in the Midwest and 5 in the South. San Antonio had the lowest rent at $1,181 — over $600 below the national average of $1,818.

  • Memphis was the only other market with rents under $1,200 at $1,195, but both Memphis and San Antonio had the lowest occupancy rates at 92.1%. Greensboro/Winston-Salem followed at $1,235, with Houston and Fort Worth also under $1,400.

  • Midwest markets clustered around $1,300, with Indianapolis at $1,296 and Kansas City at $1,351. In contrast, New York had the highest monthly asking rent at $4,500.

Interest in second homes and rentals continues to rise among the wealthy link

  • Interest in secondary and vacation homes among ultra-high-net-worth individuals (assets over $5M) rose to 43%, an 8-point increase from September. Interest in rental properties among this group stayed flat at 36%.

  • 47% of investors believe the economy will improve in the next 12 months, nearly double the 24% from September, due to optimism about Trump’s tax and regulation policies. Over 60% expect these policies to boost the economy in the next six months.

  • Confidence is highest in energy, tech, crypto, finance, and defense, with more than 70% of respondents feeling positive about these sectors in 2025. Interest in other passion assets, like jewelry and art, declined, except for wine and collectible cars.

Storage market set to recover in 2025 link

  • Self-storage values have dropped about 20% since 2021, with rents falling around 10% nationally last year. High-supply markets like Orlando, Dallas, Philadelphia, and Atlanta saw rent declines of up to 15%.

  • Coastal markets like Portland, San Francisco, Seattle, Washington, D.C., and Orange County held up better, ranking in nine of the top 10 markets for stable rents. Density and space constraints have helped keep rents steady.

  • Institutional demand remains strong, with CubeSmart’s $160M acquisition of an 85% stake in a 14-property portfolio in Dallas-Fort Worth signaling confidence in the sector. Some office assets in Manhattan are being converted to self-storage, reflecting market adaptability.

D.C. remains the most popular city for renters link

  • Washington, D.C. held the top spot for renter interest in January with a 7% increase in favorited listings. Strong healthcare and economic opportunities continue to drive demand.

  • St. Paul, Minnesota saw a 114% jump in favorited properties and a 103% increase in saved searches compared to last January. Its high quality of life and strong job market are attracting renters from Minneapolis, Chicago, and Dallas.

  • Cincinnati rose 10 spots since November due to a 27% increase in favorited properties and a low cost of living. Renters from Columbus, Atlanta, and New York are showing growing interest in the city.

Just for the kicks

America’s 15 ‘Super Billionaires’ Own More Than $2 Billion Worth of Property—but Whose Portfolio Comes Out on Top? link

  • Elon Musk sold almost all of his real estate in 2020, including a $30 million mansion in Hillsborough, CA, and Gene Wilder's former LA home. He now lives in a $50K rental in Brownsville, TX, near his SpaceX facility.

  • Jeff Bezos owns over $500 million worth of property, including a $90 million mansion on Indian Creek Island, FL, and a $165 million Warner Estate in Beverly Hills, CA. His relocation to Florida in 2024 is expected to save him at least $610 million in taxes.

  • Larry Ellison bought 98% of Lanai, HI, for $300 million and owns properties in Malibu, North Palm Beach, and Newport. His North Palm Beach estate, purchased for $80 million in 2021, was listed for $145 million a year later but didn’t sell.

Location Specific

Florida condos in jeopardy of having insurance yanked under proposed law if buildings don’t meet requirements link

  • About 90% of Florida's 1.6 million condo units are over 30 years old and required to pass a reserve study under new safety laws. So far, only 44% of condo buildings in Miami-Dade and 41% in Broward have completed the requirement.

  • The proposed bill (HB 913) would stop Citizens Property Insurance from covering non-compliant condos, which could leave thousands of retirees and low-income residents without insurance. Condo owners who keep coverage may face higher premiums.

  • Over 18,400 condo buildings are insured by Citizens, with more than half in Miami-Dade, Broward, and Palm Beach. Private insurers are unlikely to step in if Citizens pulls out, increasing the risk of unaffordable special assessments.

Proptech startups that just got funded

Pro Member Only Content Below

Most of the insights below stem from extra research and include content from paid sources and special reports.

Is Philadelphia the New Hot Spot for New Yorkers?

  • Philadelphia is now the top destination for New Yorkers looking to move, surpassing Miami from 2023. Affordability plays a big role, with median asking rent in NYC at $3,600 versus $1,721 in Philadelphia.

  • New Yorkers searching for homes in Philly reflect a trend of moving to cheaper, nearby cities with better cost of living and lifestyle options. The median asking price in NYC is $1.1 million, compared to $216,914 in Philadelphia.

  • Philadelphia was also the most searched metro area by New Yorkers, followed by Atlanta, Boston, and Tampa. Washington, D.C., Miami, and Boston had the most people searching for homes in NYC.

  • link

Why Rent-to-Own Is Catching on With Wealthy Home Buyers

  • Wealthy buyers are using rent-to-own deals to avoid high borrowing costs while securing a home at today’s price. They expect rates to drop, allowing them to lock in better financing later.

  • Developers in slower markets are offering rent-to-own to fill vacancies and generate income. It reduces the financial strain of carrying unsold properties.

  • Rent-to-own allows buyers to test new construction for issues before committing. Buyers in Los Angeles’ Bel-Air area applied $22,500 of their $44,995 monthly rent toward a $12.15M purchase.

  • link

Top 15 fastest growing states

  • Washington, DC, experienced the highest population growth rate at 2.2% from 2023 to 2024, leading the nation.

  • Florida and Texas saw significant increases, with growth rates of 2% and 1.8% respectively during the same period.

  • Smaller coastal states like New Jersey and Washington state also experienced notable growth, each with a 1.3% increase in population.

  • link

Top 10 U.S. housing markets least at-risk of declines in Q4 2024

  • The least at-risk housing markets were mostly in Wisconsin, Virginia, Tennessee, and Pennsylvania. Winnebago County, WI, was ranked #1 with only 6% of income needed to buy and 0.1% of properties with foreclosure filings.

  • About two-thirds of the 50 most vulnerable counties were in California, Florida, Illinois, and the New York City area. High affordability gaps, underwater mortgages, and foreclosure rates were key factors driving this vulnerability.

  • Chittenden County, VT, had the lowest income-to-buy ratio at 2%, with no foreclosures and just 1% unemployment. Henrico County, VA, had the highest unemployment rate among the top 10 least at-risk counties at 9%.

  • link

Top 10 hospitality trends shaping asset management in 2025

  • The hotel sector is becoming more mainstream as an asset class, attracting many first-time investors. Specialized advice based on the hotel segment (budget vs. luxury) is key to success.

  • AI is being used for project management, especially in costing and budgeting, to save time and improve accuracy. Advanced AI calculations can significantly reduce operational inefficiencies.

  • The all-inclusive market is expanding into the luxury segment, offering more than just a stay — including transfers and curated experiences. Asset managers need to adapt to this growing trend.

  • link

More Proptech Startups That Just Got Funded

Off Topic

Ranked: The World’s Best-Selling Cars From 2024

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Unreal Real Estate

This house is older than the United States (1675)

That's all folks.

Cheers,

Vidit