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67 January 2025 J O U R N A L January 2025 » return to selling and add to the uptick in homes for sale. In November, all four U.S. regions continued to see active inventory grow over the previous year. The South saw listings grow by 30.8%, while inventory grew by 29.2% in the West, 18.9% in the Midwest, and 9.7% in the Northeast. Compared with the typical November from 2017 to 2019 before COVID-19, the South saw the smallest gap in inven- tory, down just 1.4% compared with pre-pandemic levels. Meanwhile, the gap was 4.5% in the West, and much larger in the Midwest and Northeast, at 36.3% and 47.3%, respectively. The inventory of homes for sale increased in all 50 of the largest metros compared with last year. Metros that saw the most inventory growth includ- ed San Diego (+52.5%), Miami (+50.9%), and Denver (+50.7%). Top Markets Feature Diversity Realtor.com found that the top 10 markets for 2025 are distinguished by their dynamic and diverse communi- ties. Younger households are notably more common, with all but Miami hav- ing an above-average share of residents under the age of 35. These markets also have higher rates of families with children, with 28.8% of households including children compared to the national average of 26.5%. Military connections were another defining characteristic—more than one in seven households in the top markets are active-duty or veterans, exceeding the average of one in eight across the 100 largest metros. Additionally, these communities have strong internation- al ties, with 17.6% of residents being foreign-born, compared to an average of 13% in the largest metros. Miami leads with 42.7% foreign-born residents and is joined by other Florida and Texas mar- kets, which also have shares above 20%. Government Mortgages Gaining in Popularity And given that many of these younger households feature strong mil- itary connections, it's no surprise that government-backed lending options like VA, FHA, and USDA mortgages play a key role and are more prevalent among buyers in top markets, helping more households achieve homeown- ership with lower down payments and fueling the expected sales and price growth in 2025. More than half of re- cent mortgages were government loans in Colorado Springs, Colorado; El Paso, Texas; and Virginia Beach, Virginia because of high VA-loan usage. Nearly three in four mortgage loans were gov- ernment loans in El Paso, with 29.3% comprised of VA loans and 41% being FHA loans. Combined with moderate price points in the top markets, these programs are helping make homeown- ership accessible to more families. HOUSING HURDLES FOR OLDER HOMEOWNERS O lder homeowners have given their input on the state of the market and their desire to age in place. A significant majority of adults aged 50 and older (75%) want to age in their current homes, and 73% want to age in their communities, according to AARP's national 2024 Home and Community Preferences Survey. This is much higher than the per- centage of younger adults aged 18 to 49 (an estimated 60% and 63%, respec- tively), but current housing policies and community infrastructure are not keeping up with this growing demand. "As people age, affordable and independent living isn't just a prefer- ence—it's essential for their wellbeing," said Rodney Harrell, PhD, AARP VP of Family, Home, and Community. "Most older adults want to stay in their homes, yet rising housing costs and limited options create serious barriers. To meet this growing need, leaders at all levels and sectors must prioritize affordable, "Military connections were another defining characteristic—more than one in seven households in the top markets are active-duty or veterans, exceeding the average of one in eight across the 100 largest metros."