Realtor.com’s Top Housing Markets for 2025 analysis has dropped, and new data shows that Texas, Florida, and Virginia are “primed and ready for growth in the year ahead.” The top 10 markets are exclusively located in the south and west, which has cultivated a “sun belt boom,” the company said in a press release. These markets have gained notable recognition for their abundant inventory and “moderately affordable” homes. However, they also share a similar buyer profile. Keep reading to see the top housing markets for 2025, including who exactly is relocating to these areas.
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The “sun belt boom” is being felt in parts of Texas, Florida, and Virginia.
A “sun belt boom” is manifesting across southern and western regions of the country, says Realtor.com. A total of seven states are represented in this category, but of those, Texas, Florida, and Virginia are most popular.
“While these areas generally offer lower home prices than the national average, incomes tend to be lower as well,” the company said in a press release. “As a result, housing affordability remains a challenge, with buyers spending about 31.1 percent of their income on housing—higher than the national average of 29.2 percent. However, seven of the top 10 markets offer a more affordable cost of living compared to the U.S. average.”
The top 10 markets for 2025 are located in the South and West.
“While nationwide home sales are expected to see a slight uptick this 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,” Realtor.com chief economist Danielle Hale explained of their analysis in a press release.
In ranked order, here are the top 10 housing markets for 2025:
- Colorado Springs, Colorado
- Miami, Fort Lauderdale, and Pompano Beach, Florida
- Virginia Beach, Norfolk, and Newport News, Virginia
- El Paso, Texas
- Richmond, Virginia
- Orlando, Kissimmee, and Sanford, Florida
- McAllen, Edinburg, and Mission, Texas
- Phoenix, Mesa, and Chandler, Arizona
- Atlanta, Sandy Springs, and Alpharetta, Georgia
- Greensboro and High Point, North Carolina
“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,” Hale continued.
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Top markets are fueled by younger buyers, foreign residents, and those with military backgrounds.
Through their analysis, Realtor.com economists discovered that “younger, more diverse buyers with strong military, international ties” are who’s driving the top 10 markets forward.
For instance, every city on this list aside from Miami has an “above-average share” of residents who are younger than 35. What’s more, nearly 29 percent of these households belong to families with children—that’s 2.5 percent more than the national average.
These cities also have a large population of military families. In fact, more than one in seven households in the top markets are active-duty or veteran, says Realtor.com. Meanwhile, Florida and Texas have many foreign-born residents, cultivating strong international ties in several neighboring communities.