2025's Hottest Housing Markets Mean Great News For Midwest Sellers - House Digest (2025)

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Among news of the hottest real estate trends of 2025 is the rise of the market in the Midwest. February 2025 data, courtesy of John Burns Research & Consulting, points to a scarcity of housing supply as one factor driving up the value of homes in the region — as per Realtor.com, the inventory of housing in the Midwest was down 45.2% as of March 2025. John Burns' data asserts the rule of supply and demand is causing prices to rise as much as 5% each year, since a hot market with less product creates higher value. Even as a Midwest homeowner more interested in renting than selling your property, you would still be in a winning situation since single-family home rents are also rising between 5% and 7% year over year. So if you own a home in the Midwest and have been thinking about selling, this is your time.

If you're not convinced yet that the Midwest is one of the hottest housing markets in the U.S., consider that, even with the rising market value, homes are still sought after in the area. That's because of affordability in relation to other regions in the U.S., where according to Realtor.com, the national median list price of homes as of March 2025 has climbed to $424,900. So if you're a homeowner in the Midwest, it might be time to explore what Property Brothers' Drew Scott recommends doing before listing your home, and take advantage of the hot housing market.

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As per GoBankingRates, the average value of homes grew from $176,316 to $195,509 between August 2023 and August 2024. That's $19,194 worth of equity created in one year, or the equivalent of 10.9% worth of value being added to your home in 12 months.

GoBankingRates also notes that Illinois homes cost $189 per square foot on average,so a buyer with $400,000 to spend could expect to purchase 2,121 square feet of home.According to the Federal Bank of St. Louis, the national median price of housing per square foot as of February 2025 is $227 per square foot. In comparison to homes in Rockford, that's a difference of 38 square feet. Using the latter example of what $400,000 could get you with the national median, that's 1,762 square feet. So, the difference between the 2,121 square feet of home $400,000 gets you in Rockford versus 1,762 square feet in most of the U.S. equates to a noticeable upgrade.

Given how much further your money can take you for so much less, it's no wonder Rockford, Illinois has one of the hottest housing markets in the Midwest. If you're a lucky seller in Rockford, increase your home's value with this modern home design trendand make the most of an advantageous housing market.

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Not to be outdone, according to GoBankingRates, is Green Bay, Wisconsin, where homes in August 2023 averaged $289,825. A year later in August 2024, the same home was valued at $310,676. As per the U.S. Bureau of Labor Statistics, the price of all items in the U.S. increased by 2.9% with inflation between 2023 and 2024. Continuing with the GoBankingRates research, the value of homes in Green Bay rose by 7.2% in the same time period, which is almost two and a half times the rate of inflation from the same stretch. As a homeowner in this region, you would be earning better equity than the rate of inflation here. If you were to sell your home, you could afford to raise the value further by staging it. Just be sure to avoid these home staging mistakes everyone makes according to Joanna Gaines.

It's difficult to imagine a homebuyer not being enticed by Midwestern housing prices clocking in at more than $100,000 below the most recent national median listing price. Where square footage is concerned, $400,000 would buy you 1,813 square feet at $221 per square foot, which is still greater than what the national median gets you by over 100 square feet. If you're selling in Green Bay, HGTV's Mike Holmes recommends using these paint colors to help your home sell.