Buyers Gravitate Toward Affordable, Climate-Resilient Metros
The housing market is in the middle of its busy summer season, but high prices and economic uncertainty are keeping some buyers at bay. Still, house hunters had more homes to choose from in Q2-2025 than at any time since late 2019. Despite the increase in listings, however, there appears to be a gap between where buyers want to purchase a home and where inventory is actually growing.
According to the Wall Street Journal / Realtor.com Summer Housing Market Ranking report, buyers are becoming more interested in affordable, climate-resilient areas, which aren’t necessarily seeing the most inventory growth. The report's rankings, which cover the 200 largest U.S. metropolitan areas, place Manchester-Nashua, N.H., at the top of the list due to its strong buyer demand, quick sales time, and home value growth.
Affordability and Climate Resiliency Place Midwest and Northeast Markets at the Top of the List
In the wake of recent extreme weather events—such as the Los Angeles wildfires or the flash flooding in Kerr County, Texas—homebuyers are becoming more interested in the Midwest and Northeast. The top 20 markets in the WSJ/Realtor.com report showed an average of 4.6% of properties at risk of damage from climate-related incidents; in Manchester-Nashua, N.H., 4.4% of properties are at risk of a climate-related disaster.
The Midwest also is one of the more affordable areas of the country, placing it further up the list for prospective homebuyers. The Midwest markets in the report had an average listing price of $344,000 in June, which is approximately $100,000 below the national median. Ranked in the top ten housing markets in the report, the lowest-priced metro was Rockford, Ill. As of June, the median home listing in that market was priced at $248,888.
Southern markets fall behind despite having more housing inventory
Homebuyers are becoming less interested in Southern markets, with many Texas and Florida metros falling toward the bottom of the report's rankings. Growing inventory in these metros has weakened buyer competition, keeping homes on the market longer.
Additionally, the threat of climate-related damages and rising homeowners insurance premiums have eliminated much of the affordability advantage that attracted buyers to the South at the height of the Pandemic housing boom.
Despite its popularity, the lack of inventory in the Northeast could pose a challenge for buyers in the near future
- Top Housing Markets for Buyers and Sellers: A recent report found that the Northeast holds many of the top rankings for metros favoring sellers.
- The Tightest Housing Markets Heading Into the Spring Buying Season: As of February 2025, Northeast markets had 80% less active inventory compared with pre-pandemic levels.