July 2025 Hottest Housing Markets

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Immigration crackdown could slash U.S. household growth by 50% link

• Household formation is projected to fall by half between 2024 and 2026 due to deportations and stricter immigration policies.

• The forecast assumes unauthorized immigration drops to zero, cutting net migration to 65% of prior levels based on CBO and Migration Policy Institute data.

• Slower household growth could dampen consumer spending, reduce housing demand, and put downward pressure on home prices.

Medical office building sales hit 9-year low—yet space is nearly full link

• Q2 2025 MOB sales volume was $1.52B, the lowest in over nine years; trailing 12-month sales reached $8.4B, down from last year’s M&A-fueled high. More than 10 large portfolios now on the market could reverse the slowdown later this year.

• National MOB occupancy in the top 100 U.S. markets climbed to 92.8% as 16M sq. ft. was absorbed in the past year, outpacing 14M sq. ft. of new deliveries. New starts account for less than 1% of inventory, creating a deep supply-demand gap.

• Health systems like Northwestern Medicine are struggling to find quality space, often settling for older facilities needing costly upgrades. Rising construction costs are pushing them to optimize existing assets rather than build new.

Semi-urban multifamily surges—now biggest slice of rental market link

• Semi-urban areas now hold 43.4% of all multifamily households—8.7 million units—outpacing both city cores (6.5M) and suburbs (4.8M). This segment grew 25.5% over the past decade, beating suburban growth of 15%.

• High-rise downtown apartments make up just 32.4% of the market, while true suburban is 24.2%. Semi-urban’s size advantage is paired with lower land costs and more buildable space than dense cores.

• All three segments—semi-urban, central city, and suburban—grew faster than total U.S. household growth over the last decade, which was just 13.5%. Pandemic-driven migration and remote work helped push demand outward from downtowns.

July 2025 Hottest Housing Markets link

• Springfield, MA, led the nation’s hot housing markets for the third straight month in July, with listings getting 3.2x more views than the U.S. average and selling in 29 days. This is the sixth time the city has ranked No. 1, driven by high demand and tight inventory.

• The Northeast and Midwest completely filled the top 20 list for the 22nd month in a row, with prices in these hottest markets rising 2.1% on average compared to flat national prices. Days on market in many of these metros are 5–10 days shorter than the U.S. median.

• Kansas City, MO, posted the largest jump among big metros, climbing 59 spots year-over-year to rank 115th. Even with this improvement, large U.S. markets overall cooled for the 11th month in a row, with prices down 0.8% on average.

Housing Market Stalls—Buyers Wait as Prices Hold Near Record Highs link

• U.S. home prices rose 2.3% year-over-year in May—slowest growth since mid-2023—but still hit a record high; nearly 15% of June purchase contracts fell through, the highest June cancellation rate since 2017.

• Inventory is up 33% from 2024 and some markets like Austin, San Antonio, and Tampa now have more supply than pre-pandemic, but rates stuck above 6.5% keep affordability strained.

• Foreclosures rose 7% year-over-year in the first half of 2025, yet remain 35% below 2019 levels thanks to record homeowner equity, with 46% of mortgaged homes considered equity-rich.

Frisco’s apartment boom hits record highs—rent cuts still looming link

• Annual demand hit 4,992 units in Q2—almost double Frisco’s 10-year average—while 4,936 new units were delivered, growing stock by 13.6%.

• Deliveries are set to drop by over half next year to 2,225 units, but long new (12.6 months) and renewal (11.9 months) lease terms could slow tenant turnover.

• Effective rents fell 3.2% year-over-year, with Class C units down 6.6% and Class A units still posting a 1.3% gain; competition from nearby Allen/McKinney and Denton could keep pressure on prices.

Tool of the Day - Openspace

AI driven 360 reality-capture and analytics platform for construction sites

AI Is Changing How Real Estate Projects Get Built From the Ground Up – link

Developers are using AI for site selection, design optimization, and cost forecasting — cutting risks and speeding up timelines on new builds.

New AI Tool Predicts Who’s About to Sell — Before the Sign Goes Up – link

SoldSign’s platform analyzes data patterns to flag likely sellers weeks or months in advance — giving agents a first-mover advantage in winning listings.

Balancing AI’s Big Wins and Hidden Risks in Real Estate – link

Industry leaders weigh AI’s ability to boost efficiency and marketing against concerns over bias, privacy, and overreliance on automation.

AI Companies Are Powering San Francisco’s Real Estate Revival – link

A surge of AI startups is driving office demand, boosting housing markets, and breathing new life into San Francisco’s post-pandemic recovery.

U.S. Office Q2 2025 link

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