The greater Indianapolis area is emerging as one of the most promising housing hot spots in the United States. Multiple reports published by industry experts and leaders forecast that the city will be among the top real estate markets in 2025. As buyers and investors turn their attention to the Midwest, Indianapolis stands out due to its strong economic development, real estate market growth in 2024, and vibrant community.
National Association of Realtors® Top Ten Housing Spots for 2025
The National Association of Realtors® (NAR) has predicted that the Indianapolis-Carmel-Anderson metro area will be among the top ten performing markets nationwide in 2025.
NAR analyzed ten key economic indicators that impact the real estate market to make their predictions. The Indianapolis metro area outperforms national averages in the majority of these factors:
- Share of locked-in homeowners
- Average mortgage rate
- Job growth
- Share of millennial renters who can afford to buy a home
- Net migration to population ratio
- Share of households reaching homebuying age within the next five years
- Share of out-of-state movers purchasing a home
- Share of homeowners surpassing the average length of tenure in their current home
- Share of starter-owner occupied units
- Home price appreciation
Zillow’s Hottest Housing Markets of 2025
NAR is not the only market leader recognizing the greater Indianapolis area as a housing hot spot for 2025. In Zillow’s annual housing market forecast, Indianapolis ranked second nationally. Notably, Indianapolis was also the only top-five market with a rising outlook for home value appreciation, growing from 2.8% in 2024 to 3.4% in 2025 (Prakash, 2025).
When compiling their forecast, the researcher and market experts at Zillow were evaluating the data on forecasted annual home appreciation for 2025, forecasted acceleration in home appreciation from 2024 to 2025, listing days per home, two-year change in non-farm employment per two-year residential building permit total, and projected change in owner-occupied households. Statistics from their own internal listing data, the U.S. Bureau of Labor Statistics, building permits, and the American Community Survey were utilized in their study.
Hottest Housing Markets Ranking
- Top 10: The National Association of Realtors®
- #2: Zillow
Encore Sotheby’s International Realty offers home sellers and buyers access to the most accomplished real estate professionals who assist in achieving their real estate goals. With offices located throughout Indiana, including Carmel, Indianapolis, Zionsville, Fort Wayne and Lake Wawasee they are Indiana real estate experts, backed by the world-class Sotheby’s International Realty brand. For all of your real estate needs, call 317.660.4444 or visit encoresothebysrealty.com.
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