Michigan ranks #13, hottest real estate markets of 2025
2025 is shaping up to be a year of renewed momentum in real estate: despite elevated mortgage rates and home prices, demand is rebounding—and some markets are emerging as standouts amid these new dynamics.
Construction Coverage’s latest analysis identifies the hottest real estate markets of 2025, utilizing a composite score based on key indicators from Redfin.
Key Takeaways, With Data for Michigan
Home sale prices are rising again: During the pandemic, home values soared, with year-over-year price growth peaking at 26.1% in May 2021. Sale prices slowed in 2022, and actually declined in 2023. But by the end of 2024, home prices were 6.3% higher than the year prior—a pace more in line with historical norms.
Home sales volume is ramping up as well: By December 2024, home sales were up 10.8% compared to one year prior, which is the strongest annual growth since mid-2021.
Michigan in the rankings: Michigan ranks 13th out of all 50 states in the “Hottest Real Estate Markets of 2025” report.
The full report analyzes real estate market conditions in over 600 U.S. cities and all 50 states.
Feel free to cite the findings, use the graphics in your coverage, or republish the report in full. If you need additional data or a quote from our team, just let me know. If you reference the analysis, please credit Construction Coverage and link to the full report: https://constructioncoverage.com/research/hottest-real-estate-markets-us
