The hottest real estate markets of 2025 are surprisingly in the Midwest suburbs.
Cities such as Chicago, Kansas City, and Detroit have seen a surge in popularity recently due to their relatively low housing prices compared to the national average. This increased demand has consequently driven up property prices in these urban areas.
Redfin’s chief economist, Daryl Fairweather, notes that many homebuyers are expanding their search to suburban areas as they find themselves priced out of the more desirable urban neighborhoods in the Midwest.
These suburbs are typically located within a reasonable 15-20 minute drive from the city center of major metropolitan areas. They offer convenient access to amenities such as shopping centers, reputable schools, and recreational facilities, making them attractive options for those seeking a balance between urban proximity and suburban tranquility.
Homes are selling quicker than they did a year ago in each of the 10 hottest neighborhoods, with many homes also going for over asking on price, sparking bidding wars between potential buyers.
One reason for that is the in-demand neighborhoods have more demand than inventory, with many of these Midwest towns posting a drop in active listings from a year ago.
‘That means more eyeballs on the homes that are listed,’ says Redfin’s report.
‘Bidding wars can be common in theses areas—particularly homes that are well-priced, move-in ready, and in desirable locations, near water, good schools,’ Fairweather tells DailyMail.com.
These emerging suburban hotspots are seeing homebuyer demand and competitive bidding because they are all affordable, have good job opportunities, and provide strong local amenities.
Lakeville, MN, has very high demand but low supply, sparking bidding wars for homes
In Kansas, Prairie Village and Mission Hills are so in demand half go for over asking price
Mission Hills sit 15 minutes south of downtown Kansas City and homes are in high demand
Redfin agent Christine Kooiker talks Jenison
‘This ranking gives us insight into where the housing market is headed in 2025—as more people look for a balance of urban accessibility and suburban comfort. Demand will continue to surge in places that offer both,’ Fairweather adds.
Among the top ten hottest markets are multiple neighborhoods in the Midwest, including Jenison, MI, not far from Grand Rapids, where the median sale price is $356,500. Nearly one out of every four homes sold went over asking after bids poured in.
‘Jenison is only 15 minutes to downtown Grand Rapids, where you can catch a game or a show, yet it feels almost rural—there’s a lot of green space to move and grow, said local Redfin agent Christine Kooiker.
‘Taxes are low, land is affordable and the broader Georgetown Township is very open to new development. Every time I drive by, I see a new subdivision that’s half finished.’
Jenison is also only a two and a half hour drive to Chicago and Detroit.
Another Illinois area that is in high demand is Campton Hills and St. Charles, IL, where the median price of a home is $615,000. So far this year, 36 percent of homes listed have sold over asking price.
Campton Hills is a rural neighborhood 50 miles west of Chicago. Downtown St. Charles is only a few minutes away and offers plenty of restaurants and entertainment options.
‘It feels like almost every home that hits the market in Campton Hills and St. Charles has multiple offers,’ says local agent Cynthia Stolfe.
Another Illinois area that is in high demand is Campton Hills
The historic Hotel Baker sits in downtown St. Charles, Illinois, where homes are in demand
Campton Hills, Illinois doesn’t have a lot of inventory but it is in high demand with buyers
‘I tell people it’s like living in a vacation town. In summer you can go boating, or water skiing or kayaking and there are parks and trails all along the river.’
Franklin, WI, also made the list where home sales are hot. The median sale price is $392,500 and the suburb is close to Milwaukee, with plenty of shopping and restaurants within a short drive and high-quality sporting facilities.
It’s a really attractive location for commuters who either work in downtown Milwaukee or in Chicago a few days each month,’ said agent Ben Ambroch.
‘Franklin is not fully developed yet, so new construction is attracting buyers to the area. Many people are purchasing new builds because they can’t find a home for the right price closer to central Milwaukee. One of the defining characteristics of homes in Franklin is really big lots—a perk for buyers who are tired of living on top of their neighbors.’
In Kansas, Prairie Village and Mission Hills are in high demand, with homes for sale at a median price of $476,500. Nearly half of all those listed sold for more than asking.
Both Prairie Village and Mission Hills sit 15 minutes south of downtown Kansas City. The tree-lined neighborhoods have some homes in Mission Hills going for over $10 million and others in Prairie Village going for $400,000.
Local agent Jo Chavez says most affordable homes are the hottest.
‘If you can get a home in this zip code in the $400,000s—it’s a big deal,’ she said.
Prairie Village, Kansas, offers great schools, lots of greenery and affordable homes
Homes on Prairie Lane in Prairie Village have seen multiple bids from buyers over asking price
‘A lot of buyers in Kansas City are looking for homes between $300,000 to $500,000, so if anything comes up in Prairie Village at that price point, there is a lot of competition for it.’
Lakeville, MN, made the in-demand list for its sought-after schools, beautiful lakes and easy commute to downtown Minneapolis.
‘Every year, there’s the weeklong Panorama of Progress festival celebrating Lakeville’s history, which brings thousands of people downtown for fireworks and a big parade,’ says local agent Kelly Yoon, who has lived in the community for over a decade.
Demand is high and supply is short in Lakeville and that makes it really competitive. According to the report, around 70 percent of sellers get multiple offers, some more than $50,000 over asking.
While five of the hottest areas are in the Midwest, the other half is scattered, with Brooklyn’s Prospect Park and Clinton Hill topping the list at number one.
Those two neighborhoods had a 105 percent spike in home sales from a year ago.
‘Workers wanted to get out of the crowded city during the pandemic, so they bought or rented properties in upstate New York or elsewhere in the country,’ said New York agent Ian Rubinstein.
‘Many companies now require workers to be in the office at least two to three days a week—so people are coming back. In my opinion, Brooklyn has become even more popular than Manhattan.’
Other areas on the list were Fairport, NY, near Rochester, Polk Gulch and Russian Hill, CA, near San Francisco, CA, Great Kills in Staten Island, NY, and Bowie, MD, near Washington, D.C.
