Ahead of 2025, Realtor.com named its top housing markets for the year ahead, highlighting areas primed for growth in the next 12 months. Putting a spotlight on areas with moderately affordable homes, abundant inventory, and a sizable base of younger families, the top 10 markets are located exclusively in the South and West.
Realtor.com’s top markets for 2025 include:
- Colorado Springs, Colorado
- Miami-Fort Lauderdale-Pompano Beach, Florida
- Virginia Beach-Norfolk-Newport News, Virginia-North Carolina
- El Paso, Texas
- Richmond, Virginia
- Orlando-Kissimmee-Sanford, Florida
- McAllen-Edinburg-Mission, Texas
- Phoenix-Mesa-Chandler, Arizona
- Atlanta-Sandy Springs-Alpharetta, Georgia
- Greensboro-High Point, North Carolina
“While nationwide home sales are expected to see a slight uptick next year, driven by a cooling in home price growth, the top markets we’ve identified are poised for stronger sales and price gains in 2025,” says Realtor.com chief economist Danielle Hale. “With mortgage rates likely to ease only modestly next year, these markets—offering relatively lower-priced homes, more new and existing houses to choose from, and mortgage products designed to give buyers a leg up—could provide some would-be buyers a better chance at entering the market next year.”
The South and the West dominated the top of Realtor.com’s list, with the included markets offering lower home prices than the national average and lower incomes as well. As a result, housing affordability still remains a challenge, with buyers spending about 31.1% of their income on housing—higher than the national average of 29.2%. However, seven of the top 10 markets offer a more affordable cost of living than the U.S. national average, with McAllen, Texas ranking as the most affordable market.
Buyers in the top markets are also likely to benefit from flexible work arrangements. Research from Realtor.com indicates many home shoppers use flexible work options to navigate affordability challenges. Half of the top markets, including Richmond (11.8%), Atlanta (10.8%), Phoenix (10.6%), Colorado Springs (8.9%), and Orlando (8.8%) reported higher shares of remote or hybrid postings in 2024 than the average across the top 100 metros.
The markets also boast higher inventory levels than the national average, with eight of the top 10 markets experiencing year-over-year growth in single-family home construction. Markets in the South and West are also closer to pre-pandemic resale inventory levels than markets in the Midwest and Northeast.
The top 10 markets also have a higher rate of families with children than the national average (28.8% versus 26.5% nationally). Military connections are also a defining characteristic of Realtor.com’s top markets for 2025, with more than one in seven households in the top markets active-duty or veteran, exceeding the average of one in eight across the 100 largest metros.
Realtor.com’s top markets for 2025 were determined using data on the housing market and overall economy, ranking metros by combined forecasted growth in home prices and sales.
