In the ever-shifting world that is real estate, housing markets live in a pretty consistent state of ebb and flow, give or take a few staples. During the summer buying season especially, a lot of markets take a turn and heat up for buyers and sellers looking to dive in.
Taking a look at Realtor.com®’s Hottest Housing Markets report, there were a lot of dramatic shifts from summer 2024. Several markets took large leaps in the rankings, each heating up in time for summer 2025.
Here are the markets that have heated up most from last summer:
Waco, Texas
Waco leaped a whopping 137 spots to number 92 on the list. Although many people may still associate the city with the Branch Davidians cult and the 1993 siege (recently featured in a popular TV show), buyers are flocking to the city in 2025. The change seems to originate from the fact that the area is leaning more toward a buyer’s market than a seller’s market at the moment.
The area boasts a relatively affordable median list price of $325,000, below the $422,800 that the National Association of Realtors® (NAR) reports as the national median home price. Home prices have also seen a slight 0.05% decrease year-over-year. Homes also appear to be selling at asking price, with Realtor.com reporting 99.17% of homes in June having sold approximately for the asking price. Also, as of June, Realtor.com has 222 homes listed for sale in Waco, a strong supply for buyers to choose from. Mortgage payments are also less than average rents in the area by about $165 – $257.
The Texas Real Estate Research Center, in a report highlighting the city’s “wild rise” as a real estate hotspot, also points to locally based HGTV show “Fixer Upper” as a big proponent of growth in the area, with a Facebook survey of 170 local residents saying the show has made “a big positive impact on the local economy.”
Appleton, Wisconsin
Homebuyers are rushing Appleton like autumn-lovers rush to orchards to pick apples. The market jumped 101 spots and broke the top 20 on the list, now resting at number 15. Appleton is a strong market for first-time homebuyers, according to a recent SmartAssest report.
Appleton came in fifth in SmartAsset’s rankings, with an income to sale price ratio of 29.95%, and 19.24% of the population aged 25 to 39. Realtor.com reported 337 current homes for sale in the area, a solid amount of available inventory.
Realtor.com also reported Appleton’s median home price at $425,000, only slightly higher than the national median home price. Homes generally sell around asking price, with a price increase of only 1.5% on final sales.
Muskegon, Michigan
The Lake Michigan coastal area of Muskegon-Norton Shores rose 83 spots to number 115 on the list. The beachy area located about 40 miles outside of Grand Rapids certainly has its appeal. The market is heating up for sellers, with competition on the rise.
Realtor.com saw homes for sale in the area sitting for about 30 days, below the portal’s current reported national average of 51 days, and a total listings to total sales ratio over 0.2 (meaning it leans more toward sellers).
The market isn’t in a bad spot for buyers either. The area’s median home price came in at $289,900, well below the national median, and saw a slight decrease of 0.14% year-over-year. There are also currently 300 homes listed for sale in the area on Realtor.com.
Homes in the area are reportedly selling at asking price, generally good for both buyers and sellers in their own ways.
Terre Haute, Indiana
Terre Haute is getting haute-r. The market moved up 81 spots to number 62 on the list. The area is significantly affordable to middle-income buyers, something that is lacking in a lot of other parts of the U.S.
According to a report from the Indiana Association of Realtors®, 69% of listings in Terre Haute from May 2024 through April 2025 were affordable to a household making $75,000. Realtor.com reported the median listing price as $196,500, well below the national average. Zillow predicts a 0.2% increase in home prices over the next year, so the market will remain affordable. Homes have also been selling right at asking price, so no increases for buyers.
Inventory here is also plentiful, with an impressive 711 current homes listed for sale on Realtor.com.
State College, Pennsylvania
The town housing well-known Pennsylvania State University and the largest designated borough in the state, State College is bustling. The market grew 80 spots to number 53 on the list.
State College has a median listing price of $415,000, on the high side of the affordable spectrum, but still below the national median price. Homes tend to sell right at asking price. Inventory is also at a good supply, with 351 homes currently listed for sale on Realtor.com.
The reason State College is booming isn’t necessarily housing prices or inventory, but rather, the lively nature of its culture and business scene. As a college town, the area boasts a downtown full of small businesses, restaurants, breweries, wineries, an art walk and numerous interesting events year-round. State College is also home to the children’s museum Discovery Space, the Penn State Arboretum, the Palmer Museum of Art and more.
