Top 10 Housing Markets To Watch In 2025

Top 10 Housing Markets For 2025: Where Home Sales Are Set to Soar

The real estate market continues to evolve, and 2025 is shaping up to be an exciting year for buyers, sellers, and investors. Realtor.com has identified the top 10 housing markets in the U.S. that are expected to see significant growth in both home sales and prices. These cities stand out due to a mix of affordability, inventory availability, and local economic factors. Here’s a closer look at each city on the list and why it’s poised for success in the coming year.

1. Colorado Springs, CO

Ranked as the top housing market for 2025, Colorado Springs is attracting attention for its stunning mountain views, outdoor lifestyle, and strong economy. The city benefits from a steady flow of military personnel due to its proximity to military bases like Fort Carson and the U.S. Air Force Academy. These factors create a younger population base that supports housing demand. Additionally, the city’s relatively affordable home prices, compared to nearby Denver, make it a popular choice for families and first-time buyers. Colorado Springs has also seen a boost in new construction, ensuring a healthy supply of homes to meet buyer demand.

Projected Year-Over-Year Home Sales Increase - 27.1% 

Projected Year-Over-Year Home Price Increase - 12.7%

2. Miami/Fort Lauderdale/Pompano Beach, fl

South Florida continues to thrive as one of the most desirable housing markets in the country. Known for its cultural diversity, thriving nightlife, and year-round warm weather, the area appeals to a wide range of buyers. Miami is particularly attractive to international buyers and investors who are drawn to its luxury market and growing tech scene. The city’s strong job market and steady population growth are also key drivers for its ranking. With inventory levels stabilizing, South Florida’s housing market offers opportunities for buyers looking to invest in one of the most dynamic cities in the U.S.

Projected Year-Over-Year Home Sales Increase - 24% 

Projected Year-Over-Year Home Price Increase - 9%

3. Virginia Beach, VA

Virginia Beach combines the charm of a coastal town with the stability of a strong local economy. The city is a hub for military activity, thanks to its proximity to major naval installations, which ensures a steady demand for housing. Virginia Beach is also known for its family-friendly atmosphere, high-performing schools, and beautiful beaches, making it a top choice for buyers seeking a balanced lifestyle. Home prices in the area remain affordable compared to other coastal cities, further boosting its appeal.

Projected Year-Over-Year Home Sales Increase - 273.4% 

Projected Year-Over-Year Home Price Increase - 6.6%

4. El Paso, TX

El Paso is making waves as an affordable and family-friendly housing market. Situated along the U.S.-Mexico border, the city benefits from a unique cultural blend and a growing population. El Paso’s affordability stands out, as home prices are significantly lower than in other major Texas cities like Austin or Dallas. The city’s military presence, thanks to Fort Bliss, and its stable job market provide consistent housing demand. With a warm climate and a welcoming community, El Paso is becoming a top choice for first-time buyers and retirees alike.

Projected Year-Over-Year Home Sales Increase - 219.3% 

Projected Year-Over-Year Home Price Increase - 8.4%

5. Richmond, VA

Richmond has emerged as a vibrant city with a growing reputation for its historical charm and urban appeal. The city’s strong job market, fueled by industries like healthcare, finance, and education, is a significant factor in its housing market growth. Richmond offers a mix of historic homes and modern developments, catering to diverse buyer preferences. Its affordability compared to larger East Coast cities like Washington, D.C., and New York has made it an attractive option for young professionals and families looking for more space without sacrificing urban amenities.

Projected Year-Over-Year Home Sales Increase - 21.6% 

Projected Year-Over-Year Home Price Increase - 6.1%

6. Orlando, FL

Orlando is well-known as a global tourist destination, but it’s also one of the fastest-growing housing markets in the country. Families are drawn to Orlando for its warm weather, excellent schools, and proximity to world-class attractions like Disney World and Universal Studios. The city’s affordability compared to other major Florida cities, combined with strong job growth in industries like hospitality and technology, makes it a standout market. Orlando also has a robust new construction market, ensuring a steady inventory for buyers.

Projected Year-Over-Year Home Sales Increase - 15.2% 

Projected Year-Over-Year Home Price Increase - 12.1%

7. McAllen, TX

McAllen is gaining attention for its affordability and rapid growth. Located in the Rio Grande Valley, McAllen offers some of the most affordable home prices in the country. The city’s economy is driven by agriculture, trade, and healthcare, providing a stable foundation for its housing market. McAllen’s proximity to the Mexican border adds a unique cultural dynamic, making it an attractive destination for buyers seeking a vibrant and diverse community. The low cost of living and warm climate further boost its appeal.

Projected Year-Over-Year Home Sales Increase - 19.8% 

Projected Year-Over-Year Home Price Increase - 7%

8. Phoenix, AZ

Phoenix has been a hotspot for housing market growth in recent years, and 2025 will be no exception. The city’s booming population, driven by an influx of new residents from higher-cost states like California, fuels its housing demand. Phoenix offers a mix of urban amenities, outdoor activities, and affordability compared to other major metropolitan areas. The city’s strong job market, particularly in sectors like healthcare, technology, and manufacturing, supports steady housing growth. New construction is also a key factor, providing a healthy inventory for buyers.

Projected Year-Over-Year Home Sales Increase - 12.2% 

Projected Year-Over-Year Home Price Increase - 13.2%

9. Atlanta, GA

Atlanta continues to be a standout housing market, thanks to its strong job market and affordability. The city’s thriving economy is supported by industries like film, technology, and logistics, attracting a steady influx of new residents. Atlanta’s cultural scene, excellent dining options, and diverse neighborhoods make it appealing to buyers of all ages. The city also offers a variety of housing options, from historic homes in established neighborhoods to modern developments in the suburbs, ensuring something for everyone.

Projected Year-Over-Year Home Sales Increase - 15.1% 

Projected Year-Over-Year Home Price Increase - 10.2%

10. Greensboro, NC

Rounding out the top 10 is Greensboro, a city known for its affordability and Southern charm. Greensboro offers a lower cost of living than many other markets on this list, making it an attractive option for first-time buyers and retirees. The city’s economy is supported by industries like education, healthcare, and manufacturing, providing a stable job market. With its mix of urban amenities and small-town feel, Greensboro is a hidden gem that’s quickly gaining attention from buyers seeking affordability and quality of life.

Projected Year-Over-Year Home Sales Increase - 17.3% 

Projected Year-Over-Year Home Price Increase - 7.7%

Key Takeaways

These 10 cities represent a diverse mix of housing markets, each with unique factors driving their growth. From Colorado Springs’ outdoor appeal to Miami’s cultural diversity, these markets offer opportunities for buyers and investors alike. Affordability, job growth, and lifestyle amenities are the common threads tying these cities together, making them the top places to watch in 2025.

If you’re considering buying or investing in real estate in one of these areas, now is the time to act. As these markets continue to grow, the potential for long-term appreciation and strong returns is high.