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These 10 US Metros Will Likely Be Top Housing Markets in 2025
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Main points
- Some buyers have exited the housing market this year as high mortgage rates and low inventory put home prices out of reach for many.
- According to Realtor.com’s 2025 National Housing Forecast, mortgage rates will gradually decrease over the next year and housing inventory will increase on average. However, this is not the case in every city.
- Most of the 10 U.S. metropolitan areas expected to have the most active real estate market activity by 2025 have a lower cost of living than the U.S. average, attracting more cost-conscious consumers.
Last year, buyers struggled to find affordable housing, but by 2025, the housing market should become more affordable — at least in some cities.
According to Realtor.com’s 2025 National Housing Forecast, mortgage rates will gradually decrease over the next year and housing inventory will increase on average. However, this is not the case in every city. Realtor.com predicts some cities will see more housing activity next year than others.
“These markets offer relatively lower-priced homes, a wider selection of new and existing homes, and mortgage products designed to give buyers an advantage, which could provide some potential buyers with a better chance of entering the market next year,” he said. Realtor.com chief economist Danielle Hale said in a statement.
| Realtor.com Predictions for Top Real Estate Markets in 2025 | ||
|---|---|---|
| City | Existing home sales expected to grow in 2025 | Median existing home price growth expected in 2025 |
| 1. Colorado Springs, Colorado | 27.1% | 12.7% |
| 2. Miami, Florida | 24.0% | 9.0% |
| 3. Virginia Beach, Virginia. | 23.4% | 6.6% |
| 4. El Paso, Texas | 19.3% | 8.4% |
| 5. Richmond, Virginia | 21.6% | 6.1% |
| 6. Orlando, Florida | 15.2% | 12.1% |
| 7. McAllen, Texas | 19.8% | 7.0% |
| 8. Phoenix, Arizona | 12.2% | 13.2% |
| 9. Atlanta, Georgia | 15.1% | 10.2% |
| 10. Greensboro, North Carolina | 17.3% | 7.7% |
Why do these cities top the list?
Realtor.com said the top ten metropolitan areas, primarily in the South and West, are seeing a surge in new single-family home construction. More homes on the market gives buyers choices and lowers home prices by reducing competition. Homeowners are expected to list more homes for sale in 2025, which will further increase the number of options for buyers.
More homebuyers are also looking for a lower cost of living after inflation pushed up prices for goods and services sharply over the past few years. Realtor.com says that by 2025, seven of the top 10 markets will have a cheaper cost of living than the U.S. average. Home prices in the area are also generally lower than those in the average metro area.
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