In 2025, the housing market is experiencing a unique situation with high mortgage rates and home prices, yet more homes are being listed. While overall sales have fallen due to economic uncertainty and rising costs, mid-size markets with 100,000 to 500,000 residents are thriving. These markets are attractive due to their affordability combined with urban advantages, as noted in a Realtor.com and Wall Street Journal study. Additionally, regions like the Midwest and Northeast are particularly appealing for homebuyers due to climate resilience.
In the second half of 2025, mid-size markets (populations between 100,000 to 500,000 people) are dominating the real estate game, according to a Realtor.com study published in late July 2025 conducted in collaboration with The Wall Street Journal.
Mid-sized cities offer the best of both worlds when it comes to smaller towns' community and affordability while having the amenities, culture, and economic opportunities of an urban hub.
The study also found that markets in the Midwest and Northeast, more climate-resilient regions compared to their counterparts in the U.S., were drawing prospective buyers at high rates.
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