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Which real estate markets are the ones to watch in 2025?
If you’re ready to make a move, we’ll highlight 12 cities that are capturing everyone’s attention due to their unique trends and opportunities.
Let’s explore why these markets should be on your radar this year.
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) Dallas-Fort Worth, thriving on unstoppable job growth
Dallas-Fort Worth added over 154,000 new jobs in 2023, driving housing demand as more people move to the area for work opportunities.
The area’s population is growing fast, with a 1.5% annual growth rate. Thousands of new residents every year are keeping the market competitive and making homes and rentals harder to find.
Housing demand is clear in the rental market too. Average rents have hit $2,000, showing just how much people want to live here. With rents rising, more people are also thinking about buying, which adds even more energy to the market.
The region’s economy is highly diverse and was ranked #1 in PwC’s "Emerging Trends in Real Estate 2025" report.
Its strength in industries like tech, finance, and logistics makes it one of the most stable and exciting markets for buyers and investors.
Sources: US Census, Macro Trends, Federal Reserve Bank of Dallas
- Why Dallas claims the #1 spot in real estate for 2025
2) Phoenix, where the housing shortage keeps buyers fighting
The metro area population in Phoenix grew by 1.27% from 2023 to 2024, adding thousands of new residents and driving up the demand for housing.
This demand is creating a housing shortfall of over 65,000 units.This means there aren’t enough homes for everyone who wants to buy, which is keeping prices high.
Builders are trying to catch up, with a 5% increase in single-family home construction expected in 2025.
However, even with more homes being built, the shortage is so big that it will take time to meet all the demand.
Phoenix is still more affordable than many coastal cities, which is drawing buyers from places with much higher prices. Its lower cost of living makes it a popular choice for people looking for better value, making it a key market to follow in 2025.
Sources: Redfin, Home Buying Institute, Common Sense Institute Arizona, U.S. News, Arizona Center for Investigative Reporting
3) Miami, luxury living backed by a surge of wealth
Miami is one of the most exciting real estate markets in 2025, with single-family home prices rising 3.2% year-over-year as of August 2024.
This means home prices are steadily rising, which shows just how much demand there is for homes in the city.
Over the long term, Miami has seen an 80% increase in median home prices from 2015 to 2023.
This impressive growth reflects the city’s ongoing transformation into a top-tier destination for homebuyers and investors alike.
The market’s strength is also visible from the influx of wealthy residents. By 2022, the city saw a $10 billion increase in aggregate household income, driven by new high-income earners moving in.
Sources: Miami Realtors , Redfin, The World Property Journal, Norada Real Estate Investments
- Why is Miami one of the top places to invest in real estate in 2025?
4) Austin, where tech is king and homes fly off the market
As a top-ranked tech hub, Austin is bringing in high-paying jobs and attracting more people, which is driving up demand for homes.
The job market is strong, with a low unemployment rate of just 2.8%. As most people have stable incomes, it helps keep the housing market active and competitive.
At the same time, Austin is dealing with a serious housing shortage, with only 0.6 months of inventory available.
This means that if no new homes were listed, it would take just about two weeks to sell every available property. Such a low supply is far below what’s considered balanced, which is usually around six months.
This extreme shortage is therefore forcing buyers to compete fiercely for the few homes on the market.
Sources: Austin Board of Realtors, Redfin, U.S. Bureau of Labor Statistics, Federal Reserve of Dallas, Zillow
- Why is Austin a top choice for real estate investment in 2025?
5) Nashville, the city where property values just keep climbing
Nashville home prices have risen by 2.4% over the past year, reaching a median price of $460,000.
This steady growth reflects the strong demand in the city’s housing market, with prices continuing to climb.
The demand isn’t just for buying—the rental market is booming, with average rents for one-bedroom apartments up 18% year-over-year.
This jump in rental prices is a clear sign of how many people are moving to Nashville, and it’s also catching the attention of investors looking for opportunities.
What’s even more impressive is that property values have grown by 47.6% since 2019. This long-term appreciation shows Nashville’s real estate market has been reliable for years, consistently offering great returns for both homeowners and investors.
Sources: Greater Nashville Realtors, Redfin, Greater Nashville Apartment Association, Federal Reserve of Dallas, Zillow
6) Tampa-St. Petersburg, booming with 1,000 new residents every day
Tampa-St. Petersburg is welcoming around 1,000 new residents every day, making it one of the fastest-growing areas in the U.S.
Home prices are on the rise, with the median home price expected to reach $420,000 in 2025, a 3.6% increase.
This growth reflects the strong interest from both buyers and investors looking to secure property in the area.
At the same time, mortgage rates are projected to drop to 6.3% by the end of 2024.
Lower rates will make home buying more affordable for many, likely boosting competition even further.
Sources: Tampa Hillsborough Economic Development Corporation, Home Buying Institute, Norada Real Estate Investments, Statista, U.S. News
7) Atlanta, the nation’s hottest housing market year after year
Atlanta is ranked as the top housing market in the US for 2023, a status that continues into 2025.
This ranking highlights the city’s strong appeal for buyers and investors alike, driven by high demand and consistent growth.
The population has grown to over 5.2 million residents, which is putting a lot of pressure on the housing market. With so many people moving in, it’s no surprise the market is as competitive as ever.
Atlanta’s job market has grown by 6.4% since the pandemic, bringing in new residents with steady incomes. This strong job growth is one of the reasons why housing demand continues to rise.
Home prices are going up steadily because there’s high demand and not enough homes for sale. For investors, this mix of strong growth and limited supply makes Atlanta a great place for long-term returns.
Sources: Home Buying Institute, U.S. Bureau of Labor Statistics, Redfin, Norada Real Estate Investments
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8) Charlotte, where skyrocketing prices meet fierce competition
Home prices in Charlotte have jumped by 53% since 2020, with the median price now at $420,000.
This big increase shows just how much demand has grown, making the city’s housing market one of the hottest in the country.
There are only 3,200 homes for sale, which is very low for a city of this size.
Charlotte is also underbuilt by about 10,000 housing units, largely due to COVID-19 delays in construction.
This shortage of homes is keeping inventory tight and adding even more pressure on buyers. With skyrocketing prices in a growing market value, Charlotte is one of the most talked-about real estate markets in 2025.
Sources: Redfin, Federal Reserve of Dallas, Zillow, Norada Real Estate Investments
9) Orlando, where new arrivals drive up demand daily
Home prices in Orlando are climbing fast, up 9.7% in the past year. The city’s growing popularity is keeping demand strong and prices on the rise.
Despite the price growth, housing inventory increased by around 60%.
This means more homes are available, but it’s still not enough to fully meet the rising demand, keeping competition high.
The growing demand is driven by Orlando’s booming population, with around 55,000 new residents arriving between July 2022 and July 2023.
More people moving in means more pressure on both the sales and rental markets, making homes harder to find.
Sources: Redfin, Orlando Regional Realtor Association, Neilsberg, Orlando Economic Partnership , Statista
10) Salt Lake City, where quick sales signal a red-hot market
Salt Lake City’s median sale price is $520,000, which is 28% higher than the national average.
This shows just how competitive the market is, with strong demand driving prices higher than in many other cities.
More homes are becoming available, with inventory growing by 17% between April 2023 and April 2024.
But while this gives buyers a few more options,it hasn’t been enough to ease competition, keeping the pressure on the market.
Homes in Salt Lake City sell fast, spending an average of just 36 days on the market. This quick turnaround shows that buyers are acting quickly to secure homes despite higher prices.
Sources: Redfin, Realtors, American Enterprise Institute, Federal Reserve of Dallas
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11) Seattle, where tech wealth keeps housing supply painfully tight
With only 0.6 months of inventory available, Seattle’s housing market is one of the tightest in the country.
This shortage means that if no new homes were listed, the entire supply would sell out in about two weeks.
This tight supply is part of why Seattle’s median home price has reached $880,000, a 10% increase from last year.
With so many buyers and so few homes, prices are continuing to climb in one of the most competitive markets in the country.
A major factor driving this demand is Seattle’s strong job market. Home to tech giants like Amazon and Microsoft, the city attracts high-income professionals who are eager to buy, further intensifying the housing crunch.
Sources: Redfin, Forbes, Zillow, U.S. News, Norada Real Estate Investments
12) Boise, booming as a new tech magnet with lightning-fast sales
Boise's housing market is growing fast, with the median sale price reaching $539,000, a 10.6% year-over-year increase.
The demand is clear in how quickly homes are selling, with an average of just 12 days on the market.
Properties are moving fast, showing that buyers are eager to secure homes as soon as they become available.
Boise’s growth as a new tech hub is playing a big role in this demand. Skilled workers are relocating for tech jobs, adding even more pressure to the housing market.
Lower mortgage rates are also helping buyers. As of mid-2024, the 30-year fixed rate was 6.89%, and the 15-year rate was 6.17%.
Sources: Redfin, BOI Realtors, US News
- Where will U.S. home prices explode in 2025?
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So, why is everyone watching these 12 real estate markets in 2025? Because they're booming!
In 2025, these 12 real estate markets are capturing attention due to their unique growth trends and opportunities. From job growth to housing shortages, each city has its own story driving demand.
Take Dallas-Fort Worth, for example, where unstoppable job growth is fueling the market. Meanwhile, Phoenix is grappling with a housing shortfall of over 65,000 units, keeping prices high despite new construction. Miami's luxury market is thriving, with a 3.2% year-over-year increase in single-family home prices, reflecting a surge of wealth.
In Austin, a tech hub with a low unemployment rate of 2.8%, homes are flying off the market due to a serious housing shortage. Nashville's property values have grown by 47.6% since 2019, showing long-term reliability. Tampa-St. Petersburg is booming with 1,000 new residents every day, driving up home prices.