U.S. News & World Report’s Housing Market Index is a tool for consumers to better understand and evaluate the relative health of their local housing markets, according to the publication. The index tracks a range of metrics and ranks MSAs on a scale of 1 to 100. The latest rankings are based on data from January 2025.
The overall U.S. housing market index for January 2025 was 66.6. By comparison, the overall HMI score for June 2024 was 67.8.
U.S. News ranks a total of 175 metropolitan statistical areas across three categories: demand, supply, and financial factors. Each category has its own index score and rankings.
The Hottest Overall Markets
Omaha, Nebraska – 76.2
Austin, Texas – 72.3
Houston – 72.1
Charleston, South Carolina – 71.6
Denver – 71.5
How the Housing Market Index Works
The HMI uses a 1–100 scale, where a higher score indicates a healthier market. The score is based on a weighted average of data points across three categories:
Demand: This category includes factors such as household growth, unemployment, and consumer sentiment.
Supply: This category includes metrics such as housing supply, builder sentiment, and construction jobs.
Financial Factors: This category includes housing affordability, mortgage rates, and housing costs.
These three subindexes are combined to produce the overall HMI score for each metropolitan statistical area.
Understanding the Demand Subindex
U.S. News’ Demand subindex measures factors that influence the level of buyer activity in a given market. The data points in this subindex include:
Household growth: The number of new households formed in an area.
Unemployment rate: The percentage of the labor force that is unemployed.
Consumer sentiment: A measure of how optimistic consumers are about the economy.
Median home sales price: The median price of homes sold in the market.
Rental price growth: The rate of increase in rental prices.
Hottest Markets for Housing Demand
Greeley, Colorado – 84.2
Austin, Texas – 84.1
Boise City, Idaho – 84.0
Columbia, South Carolina – 83.0
San Antonio, Texas – 82.5
Understanding the Supply Subindex
The Supply subindex measures factors related to housing availability and construction activity in a market. Key metrics include:
Housing supply: The total number of homes available for sale.
Rental vacancy rate: The percentage of rental units that are unoccupied.
Construction jobs: The number of jobs in the construction sector.
Builder sentiment: A measure of how optimistic builders are about market conditions.
Architectural billings: A leading indicator of future construction activity.
Hottest Markets for Housing Supply
Philadelphia – 67.6
New York City – 63.8
Charleston, South Carolina – 63.7 (tie)
Orlando, Florida – 63.7 (tie)
Dallas – 62.0
Understanding the Financial Subindex
The Financial subindex measures factors related to housing affordability and mortgage market conditions. This subindex includes:
Housing supply: The total number of homes available for sale.
Rental vacancy rate: The percentage of rental units that are unoccupied.
Construction costs: The cost of building new homes.
Construction jobs: The number of jobs in the construction sector.
Builder sentiment: A measure of how optimistic builders are about market conditions.
Architectural billings: A leading indicator of future construction activity.
Hottest Markets for Housing Financing
Omaha, Nebraska – 94.9
Minneapolis – 93.4 (tie)
Detroit – 93.4 (tie)
St. Louis – 93.4 (tie)
Kansas City, Missouri – 91.5
Markets to Watch
In addition to the overall rankings, U.S. News also identifies “markets to watch” that have shown significant improvement over a specific period. For the period between June 2024 and January 2025, the following markets showed notable gains:
Orlando, Florida – improved by 7.3 points
St. Louis – improved by 7 points
Greeley, Colorado – improved by 6 points
Richmond, Virginia – improved by 5.9 points
Inland Empire counties, California – improved by 5.7 points
Markets Showing the Most Resilience
To identify resilient markets, U.S. News evaluates which MSAs have maintained strong performance over the past year despite broader market fluctuations. For the year-over-year period ending January 2025, the following markets were the most resilient:
Columbia, South Carolina – improved by 4.2 points
Kansas City, Missouri – improved by 3.7 points
Los Angeles – improved by 3.7 points
San Jose, California – improved by 3.4 points
Boise City, Idaho – improved by 3.4 points
How to Use the Housing Market Index
For homebuyers, the HMI can help identify markets that align with their priorities. Buyers seeking affordability may focus on markets with high Financial subindex scores, while those prioritizing job growth might look at markets with strong Demand subindex scores. Sellers can use the HMI to assess market conditions and determine the best time to list their property.
Real estate professionals can leverage the HMI to advise clients on market trends and identify opportunities in specific geographic areas. The index provides a data-driven foundation for market analysis and strategic decision-making.
In conclusion, U.S. News & World Report’s Housing Market Index offers a comprehensive framework for evaluating housing market health. By tracking key metrics across demand, supply, and financial factors, the index provides valuable insights for homebuyers, sellers, and real estate professionals seeking to navigate the complexities of the U.S. housing market in 2025.
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