The U.S. Housing Market Hotness Index slipped to 88.33 for the week ending December 28, 2025, down from 89.99 the previous week, ending the year firmly in the cool zone. Throughout 2025, elevated mortgage rates, high home prices, and persistent affordability challenges kept buyer activity subdued and the broader housing market sluggish.
Market conditions, however, varied sharply by region. Parts of the Northeast and Midwest continued to post relatively strong performance, supported by better affordability, stable local economies, and the absence of the extreme price surges seen during the pandemic years. Monroe and Erie Counties in New York and Hartford County in Connecticut ranked among the hottest markets, alongside San Mateo and Santa Clara Counties in California. By contrast, many Sun Belt markets that experienced rapid price appreciation earlier in the decade struggled under the weight of stretched affordability. Miami-Dade and Broward Counties in Florida, Travis and Bexar Counties in Texas, and Davidson County in Tennessee were among the weakest markets to close out the year.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
