These 10 Housing Markets Are Projected To Be the Hottest in 2025 — Here’s Why
Written by
John Csiszar
Edited by
Zuri Anderson
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The housing market has been through a lot of changes over the past four years. Prices fell in the very early days of the pandemic, but as mortgage rates fell to all-time lows, buying picked up and home prices boomed.
As rates rose sharply in response to the spike in inflation in 2022, inventory dried up, helping to maintain the housing market’s gains. But with rates slated to fall in 2025, most experts expect inventory to open up, triggering more home sales.
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According to Realtor.com, the cities and areas listed below are the 10 housing markets projected to remain hot in 2025. Interestingly, all of the top 10 areas are located in the South or the West, America’s Sun Belt. Primarily, these destinations are popular because they boast consistent warmth and have low-to-middling costs of living, in addition to abundant amenities.
Yet, each city retains its own unique nature as well. Read on to see where sales and prices are expected to jump.
Colorado Springs, Colorado
- 2025 existing home sale counts year-over-year: 27.1%
- 2025 existing home median sale price year-over-year: 12.7%
Colorado Springs is expected to reap the rewards of the double-whammy in the housing market next year. The biggest jump in existing home sales and one of the highest price increases of any major metropolitan area.
The city is extremely popular with the outdoorsy set, and it’s one of the most dog-friendly cities in America.
Miami-Ft. Lauderdale-Pompano Beach, Florida
- 2025 existing home sale counts year-over-year: 24%
- 2025 existing home median sale price year-over-year: 9%
Miami has long been a boom-or-bust type of housing market, and opinions vary in the coming year. Realtor.com anticipates the greater Miami area will continue to ride the wave that has pushed prices up by at least 50% since the pandemic.
However, it’s worth noting that some analysts, such as those at UBS, have Miami pegged as the city most at risk of a housing bubble in 2025.
Virginia Beach-Norfolk-Newport News, Virginia-North Carolina
- 2025 existing home sale counts year-over-year: 23.4%
- 2025 existing home median sale price year-over-year: 6.6%
Prices in the greater Virginia Beach area are “only” expected to rise a bit over 6% in 2025, but that’s still a significant jump.
Where the Virginia Beach-Norfolk-Newport News metropolitan statistical area is really expected to shine is in terms of existing home sales. The projected jump of 23.4% for the area is among the very tops in the nation.
El Paso, Texas
- 2025 existing home sale counts year-over-year: 19.3%
- 2025 existing home median sale price year-over-year: 8.4%
El Paso isn’t often cited as a red-hot housing market, but its relative affordability over the years is starting to pay off, attracting an increasing number of homebuyers.
Over the past few years, the city has seen consistent, steady growth, with strong demand and low inventory helping to drive prices higher.
Richmond, Virginia
- 2025 existing home sale counts year-over-year: 21.6%
- 2025 existing home median sale price year-over-year: 6.1%
Richmond is a capital city with all of the entertainment and employment options you might expect, yet it still remains affordable. Existing home sales are expected to take off in 2025, with prices appreciating at an above-average clip, as well.
Orlando-Kissimmee-Sanford, Florida
- 2025 existing home sale counts year-over-year: 15.2%
- 2025 existing home median sale price year-over-year: 12.1%
The greater Orlando area is one of only four major metropolitan areas expected to see a double-digit increase in the median sale price of existing homes in 2025. The sun and the city’s myriad entertainment options are both key contributors.
McAllen-Edinburg-Mission, Texas
- 2025 existing home sale counts year-over-year: 19.8%
- 2025 existing home median sale price year-over-year: 7.0%
The cost of living in the McAllen area is roughly 16% below the national average, making it an appealing area for those searching for a bargain.
Forbes projects job growth of 3.9% in the area, and CNBC sees McAllen as having a business environment favorable for startups, factors that may continue to prop up home prices.
Phoenix-Mesa-Chandler, Arizona
- 2025 existing home sale counts year-over-year: 12.2%
- 2025 existing home median sale price year-over-year: 13.2%
Home prices in the greater Phoenix area are expected to appreciate more than any other major metropolitan area in 2025, easily surpassing the double-digit threshold.
The Valley of the Sun has rapidly been gaining popularity as an affordable alternative to other cities — but it’s also drawing more than it’s share of wealthy residents to the area’s more pricey enclaves.
Atlanta-Sandy Springs-Alpharetta, Georgia
- 2025 existing home sale counts year-over-year: 15.1%
- 2025 existing home median sale price year-over-year: 10.2%
While existing home sales are expected to jump “only” a touch above 15% in 2025, what matters to most homeowners is the expected price increase. At just over 10%, the greater Atlanta statistical area should enjoy one of the biggest projected price gains in America.
Greensboro-High Point, North Carolina
- 2025 existing home sale counts year-over-year: 17.3%
- 2025 existing home median sale price year-over-year: 7.7%
Greensboro is an affordable place to live, with costs running nearly 16% below the national average. Home prices are particularly cheap, averaging 32% below national norms. This leaves plenty of room for prices to run in the attractive area.
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