Jan 2025 hottest housing markets

Visualized: The 1%’s Share of U.S. Wealth Over Time (1989-2024)

Vidit Saxena
February 18, 2025

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Latest Rates

Loan Type	Rate	Daily Change	Wkly Change	Monthly Change	Yearly Change	52-Wk Low/High
30 Yr. Fixed	6.96%	-0.08%	-0.07%	-0.29%	-0.13%	6.11 / 7.52
15 Yr. Fixed	6.41%	-0.07%	-0.01%	-0.17%	-0.08%	5.54 / 6.91
30 Yr. FHA	6.33%	-0.12%	-0.06%	-0.26%	-0.22%	5.65 / 7.00
30 Yr. Jumbo	7.32%	-0.07%	+0.01%	-0.12%	-0.07%	6.37 / 7.68
7/6 SOFR ARM	6.85%	-0.10%	+0.04%	-0.29%	-0.02%	5.95 / 7.55
30 Yr. VA	6.35%	-0.12%	-0.06%	-0.25%	-0.23%	5.66 / 7.03

Real Estate Trends

Snappt analyzed nearly 5 million documents in 2024 and found that 6.4% of rental applications were fraudulent, with over 80,000 documents manipulated. This was a drop from 7.9% in 2023, suggesting improved fraud detection methods.
Memphis had the highest rental fraud rate at 14.4%, followed by Mobile at 13.5% and Atlanta at 12.2%. Mississippi led all states in fraud at 10.3%, with Georgia, Indiana, Texas, and Maryland rounding out the top five.
The most common fraud tactics included using software to create fake PDFs, altering text in existing documents, and making font inconsistencies that revealed forgery. AI is now both a tool for detection and a risk factor as rental scams evolve.

Manchester-Nashua, NH, ranked as the hottest housing market for the 32nd time, driven by high demand and tight inventory. Homes in the metro saw 3.6 times the national average in listing views and a 2.5% price increase year over year.
The Northeast and Midwest dominated the rankings, with 19 of the top 20 markets located in these regions. Philadelphia saw the biggest jump, climbing 57 spots to rank as the 62nd hottest market.
Inventory in the hottest markets rose 12.7% year over year, about half of the national increase of 24.6%, keeping competition intense. Homes in these markets stayed on the market three weeks less than the national average.
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Wichita, Kansas, is the most affordable city for singles, with a median studio rent of $590, which takes up only 18% of the median single’s income of $39,336. Columbus, Ohio, and Minneapolis follow, where studio rent costs about 21% of a single resident’s income.
Seattle ranks fourth with a median rent of $1,495, but higher incomes balance affordability—singles earn a median of $85,653, paying about 21% of earnings on rent. Colorado Springs, Tulsa, Albuquerque, Austin, Oklahoma City, and Indianapolis also rank among the most affordable cities.
New York City is the least affordable, where a median studio costs $3,375, swallowing 67% of the median single’s income of $59,947. Miami, Detroit, Boston, Los Angeles, and Philadelphia also rank among the most expensive for singles.
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Visits to luxury retail brands declined by 4% in 2024, reversing the growth seen in 2022 and 2023. The shift suggests lower demand for high-end brands as consumers prioritize value.
High-end shopping centers in New York, Miami, and Dallas saw slower foot traffic despite strong brand lineups. Weekend visits remained stable, but shoppers reduced discretionary spending.
Ultra-wealthy families made up 20% of luxury store visits, while younger and diverse urban groups cut back. This shift forces luxury retailers to rely more on their core wealthy customers.

Over-leveraged owners are expected to start selling in 2025, either voluntarily or under pressure from lenders. Bondholders are already taking losses on multifamily deals, with banks more willing to absorb losses if they can redeploy capital quickly.
Large hospitality deals over $100 million are expected to move in 2025 as debt liquidity improves. Many hotels are performing well, with Q1 revenues on track or exceeding budget in key markets.
Debt availability has improved, with some multifamily deals securing all-in rates in the mid-5% range. However, LP equity remains difficult to secure, with sidelined capital favoring preferred positions and mid-to-upper teen yields.
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Something I found Interesting

Strict zoning laws in blue states have made it nearly impossible to build new housing, leading to severe affordability and homelessness crises. In California alone, more than 170,000 people are homeless, and millions have moved out due to high costs.
The historical roots of zoning laws were designed to segregate communities by class and race, initially targeting Chinese residents in California. Over time, progressive reforms layered regulations that now prevent development even in high-demand areas.
Governor Gavin Newsom temporarily suspended regulations to fast-track rebuilding after wildfires, highlighting how restrictive rules delay housing construction. This move has sparked bipartisan agreement that outdated laws must be overhauled to restore housing affordability and mobility.
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One Chart

Louisiana has the highest combined state and local sales tax rate at 10.12%, followed by Tennessee (9.56%), Arkansas (9.46%), Washington (9.43%), and Alabama (9.43%). These high tax rates significantly impact consumers and businesses in these states.
Sales taxes are often the first option politicians use to generate revenue for new projects. This makes them one of the most direct forms of taxation affecting every resident.
The Tax Foundation’s annual list tracks changes over time, providing a comparison to previous years. Reviewing trends can help businesses and consumers plan for potential cost increases.
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