(NewsNation) — Between high prices, limited inventory and elevated mortgage rates, it's been a tough year for the U.S. housing market but some cities are poised for a better 2025, according to a new report. The National Association of Realtors (NAR) identified 10 metro areas as "housing hot spots" for 2025 based on factors like job growth, migration trends and other key variables. Multiple midwestern metros including Grand Rapids, Michigan, Indianapolis, Indiana and Kansas City, Missouri made the list. Southern markets like Charlotte, North Carolina, Greenville, South Carolina and Knoxville, Tennessee also cracked the top ten. ‘Silver tsunami’ won’t solve affordable housing crisis: Zillow Those areas offer a "favorable financing environment," meaning they have a lower share of "locked-in" homeowners or lower mortgage rates, the report said. "Important factors common among the top performing markets in 2025 include available inventory at affordable price points, a better chance of unlocking low mortgage rates, higher income growth for young adults and net migration into specific metro areas," NAR chief economist Lawrence Yun said in a statement. The NAR's ten housing hot spots for 2025 (in alphabetical order): Boston-Cambridge-Newton, Massachusetts-New Hampshire Charlotte-Concord-Gastonia, North Carolina-South Carolina Grand Rapids-Kentwood, Michigan Greenville-Anderson, South Carolina Hartford-East-Hartford-Middletown, Connecticut Indianapolis-Carmel-Anderson, Indiana Kansas City, Missouri-Kansas Knoxville, Tennessee Phoenix-Mesa-Chandler, Arizona San Antonio-New Braunfels, Texas Economists’ 2025 housing market forecasts largely call for mortgage rates to stay above 6% next year Will 2025 be a better year for home buyers? The short answer: Yes, probably. The NAR expects mortgage rates to stabilize near 6% in 2025, establishing a "new normal" and bringing buyers back into the market. As recently as May the average rate for a 30-year fixed mortgage was above 7%, according to Freddie Mac. Inventory levels are also forecasted to improve next year thanks to new construction projects and more homeowners listing their properties, the NAR said. Home prices will still increase, by about 2%, reaching a $410,700 median existing-home price, according to the NAR's projections. However, that's a slower pace compared to previous years. "Home buyers will have more success next year," Yun said. "The worst of the affordability challenges are over as more inventory, stable mortgage rates and continued job and income growth pave the way for more Americans to achieve homeownership." Sales of existing homes hit an eight-month high in November but the broader housing story of 2024 is one of stagnation. This year is on track to be one of the slowest housing markets in decades.