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Which cities are poised for massive home price growth in 2025?
If you’re looking to stay ahead of the curve, we’ve pinpointed 12 areas where home values are expected to skyrocket.
Let’s dive into what’s fueling this trend and why these markets could be the perfect fit for your next investment.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) San Jose, where prices have already jumped 11% in one year
San Jose’s housing market is under intense pressure, with homes selling in under 24 days on average in 2024. Buyers are rushing to secure properties, driving prices higher across the city.
Prices have jumped by 10.71% year-over-year, thanks to the booming tech industry and strong demand from well-paid tech workers, pushing many homes into luxury price ranges.
New residents, earning an average of $175,600 annually, are adding to the competition, particularly for high-end properties, making it even harder for middle-income buyers.
There are only 1,526 homes for sale as of October 2024, which means buyers don’t have many options to choose from. This number is slightly higher—by 4.8%—than the previous month, but it’s still very low compared to the demand in the area.
With so few homes and so many buyers competing, sellers can keep prices high as buyers are competing with each other to secure a property.
Sources: Redfin , World Population Review , Neilsberg
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2) Boise, where the population is booming (+10%)
Boise is experiencing rapid population growth, with a projected 9.8% increase in 2025.
More people moving in means higher demand for homes, making the housing market even more competitive.
The economy is also growing steadily, with 1.2% economic growth expected, which brings more jobs and stability, and helps support rising home prices.
On top of that, the job market is set to expand by 1.2%, attracting new residents looking for work. These newcomers are adding to the demand for housing and keeping the market busy.
Many of these new residents are coming from expensive West Coast cities. The influx of people from areas like California is putting even more pressure on the market, as they look for more affordable options and drive up prices here.
Sources: Bureau of Labor Statistics, State of Idaho , City of Boise, Neilsberg , Idaho Department of Labor
3) San Diego, where prices have risen by 6.5% already
San Diego’s housing market is surging, with the median home price at $945,000 in 2024.
This marks a 6.5% increase from last year, driven by its coastal location and desirable lifestyle.
The city’s population grew by 1.07% from 2023 to 2024, bringing more buyers into the market and increasing demand for homes.
Meanwhile, new construction isn’t keeping up. Only 4,200 new housing units were built in 2023, falling far short of what’s needed and keeping inventory low.
San Diego’s rental market also shows strong demand, with one-bedroom apartments averaging $2,500 per month. High rents are making more people consider buying instead, which only adds to the competition for homes.
Sources: Federal Reserve Economic Data, United States Census Bureau, Redfin, Zillow, Home Buying Institute
4) Charlotte, where suburban growth boosts prices by 2.3%
Charlotte’s housing market is set for significant growth, supported by a 2.3% economic growth projection for 2025.
A stronger economy means more jobs and opportunities, which helps drive demand for housing.
In fact, the city’s job market is growing, with 1.1% more jobs expected. This is bringing new people to Charlotte, many of whom are looking to buy homes, adding even more competition to the market.
Suburban areas like Matthews and Concord are growing quickly and becoming popular choices for homebuyers.
These areas offer more space and better prices, making them attractive for families and investors alike.
Sources: Bureau of Labor Statistics, City of Charlotte, Charlotte Regional Business Alliance
5) Raleigh, where demand is soaring with a 2.2% population jump
The population in Raleigh is expected to grow by 2.2% in 2025, bringing even more buyers into the housing market. With so many new buyers, competition for homes is getting tougher, and prices are rising.
This population growth is fueled by Raleigh’s strong tech sector in Research Triangle Park. The booming job market is bringing in professionals, increasing the need for housing across the city.
Raleigh’s economy is also growing in the biotech sector, creating high-paying jobs. This is helping the housing market stay strong and bringing even more people looking to buy homes.
Many buyers are turning to suburbs like Holly Springs, as these areas offer more affordable homes while still being close to the city, making them a top choice for families and professionals
In October 2024, Holly Springs home prices were down 21.0% compared to last year, with the median price at $468K. This affordability is attracting even more buyers, adding to the demand in Raleigh’s housing market.
Sources: Redfin, Statista, Neilsberg, World Population Review , Wake County North Carolina
6) Phoenix, where a 65,000-unit shortfall drives up demand
Phoenix’s housing market is heating up, with a 1.27% increase in metro area population from 2023 to 2024.
This means thousands of new residents are moving to the city, all looking for homes, which is creating more demand and driving competition among buyers.
More people looking for homes means higher demand, making it harder to find a place and pushing prices up even more.
The city’s economy is also on the rise, with 2.0% economic growth projected for 2025.
At the same time, Phoenix is dealing with a housing shortfall of over 65,000 units. This gap between supply and demand means there are not enough homes available, which continues to push prices higher as buyers compete for limited inventory.
Sources: Common Sense Institute Arizona, Norada Real Estate Investments, Arizona Center for Investigative Reporting , Federal Reserve Bank of Dallas, Morrison Institute for Public Policy
7) Nashville, where high demand persists despite 24% more homes
Nashville’s housing market is growing fast, thanks to its strong economy. The city was ranked #1 for growth potential by Realtor.com for three years in a row, which continues to attract businesses and workers, increasing the need for homes.
The population has grown by over 10% since 2010, with thousands of new people moving to the city. This steady growth has kept the housing market competitive and pushed prices higher.
Home prices reflect this demand, with a median listing price of $542,447.
The rising prices show just how popular Nashville has become for buyers and investors.
Even with a 24% increase in homes for sale compared to last year, there still aren’t enough houses to meet all the demand. This means buyers are competing for fewer options, which keeps prices going up.
Sources: Statista, Tennessee State Data Center , Greater Nashville Realtors, Nashville Area Chamber of Commerce , Norada Real Estate Investments
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8) Orlando, where new residents and tourism keep prices climbing
Orlando’s housing market is set for strong growth in 2025, thanks to its thriving tourism industry, attracting both workers and investors.
The population is rising quickly, with around 55,000 new residents moving to Orlando between July 2022 and July 2023.
More people means more buyers looking for homes, which drives up demand and prices.
To help with housing needs, Orlando is using $2.8 million in federal funds to create more affordable housing.
This funding could make homes more affordable for low- and middle-income families, boosting demand and increasing competition in the market.
Sources: Florida Realtors , City of Orlando, Orlando Regional Realtor Association
9) Miami, where luxury condos are fueling a price surge
Miami’s housing market is experiencing a luxury boom, with luxury condo sales up by 122.2% compared to pre-pandemic levels.
High-end buyers are driving demand, making Miami one of the most competitive markets for premium properties.
The city’s appeal to affluent newcomers has brought a $10 billion increase in household income by 2022.
This wave of wealthier residents is fueling competition for luxury homes and condos, pushing prices higher.
International buyers and investors are also playing a big role. Miami’s global reputation keeps attracting foreign interest, adding even more demand to the housing market.
Sources: Miami Realtors , Neilsberg , Federal Reserve Bank of Dallas, United States Census Bureau
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10) Tampa, where steady demand leads to a 3.6% rise
Tampa’s housing market is seeing a surge in demand, with about 1,000 new residents arriving every day.
This steady population growth is putting more pressure on the housing market as newcomers compete for limited homes.
The median home price in Tampa is predicted to hit $420,000 in 2025, a 3.6% increase from current levels.
Rising demand and limited inventory are helping to push prices higher year after year.
Adding to the growth, mortgage rates are projected to drop to around 6.3% by the end of 2024. This will make buying more affordable, encouraging even more people to jump into the market and adding to the competition.
Sources: Statista , Neilsberg , Norada Real Estate Investments, U.S. News, Realtor
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So, will home prices skyrocket somewhere in the US in 2025? Absolutely!
Home prices are set to skyrocket in 2025 across several key cities, driven by a mix of economic growth, population influx, and limited housing supply.
In San Jose, the tech boom and high salaries are pushing prices up, with homes selling in under 24 days and a 10.71% year-over-year increase. Boise's population is projected to grow by 9.8%, fueling demand. San Diego's coastal appeal and limited new construction are driving a 6.5% price increase.
Charlotte and Raleigh are seeing economic and job growth, with Raleigh's population expected to jump by 2.2%. Phoenix faces a 65,000-unit shortfall, while Nashville's popularity keeps prices high despite a 24% increase in homes for sale. Orlando's tourism and Miami's luxury market are also key factors, with Miami seeing a 122.2% increase in luxury condo sales.