5 housing markets to watch in 2025
The U.S. is currently grappling with a difficult housing market that’s marked by high home prices, rising mortgage rates, and other costs that have put homeownership out of reach for many.
But even in a tough buyer’s environment, there are bright spots that have remained affordable and boast other attractive benefits, including sunny weather.
The South and the region known as the Sun Belt have become increasingly alluring, not only for people but for businesses and other growth. Given more lenient tax codes, business-friendly policies, larger and less expensive homes, and new developments in the works, this area has welcomed more domestic migrants than any other in the country.
Real estate site Realtor.com (NWSA) ranked the top 5 housing markets to watch in 2025. Click through to see which U.S. cities will be the most enticing in the new year.
5. Nashville, Tennessee
Having held the no. 1 spot for three years, Nashville comes in fifth on Realtor.com’s cities to watch for 2025. Given its rapid growth, it has become somewhat less affordable, with a median home list price of $542,447 and median monthly rent of $1,578.
4. Tampa-St. Petersburg, Florida
At no. 4, this up-and-coming city has a median home list price of $399,999 and median monthly rent of $1,720. It’s an investor’s paradise, Realtor.com said, with thanks to warm weather and beautiful beaches. But, like Miami, contends with high insurance costs and climate risks.
3. Houston, Texas
Another Texas city that’s worth keeping an eye on is Houston, with a $369,450 median home list price and $1,375 median monthly rent. Despite a large influx of new inhabitants, Houston has remained relatively affordable, according to the site.
2. Miami, Florida
Miami, where the median home list price is $535,000 and median monthly rent comes in at $1,227, is an investor hotspot and no. 2 on Realtor.com’s list. While inhabitants benefit from the lack of income tax, they have to grapple with high insurance premiums and climate risks.
1. Dallas, Texas
Coming in at no. 1 is Dallas, with a median home list price of $434,500 and median monthly rent of $1,475. It has become the top city to watch thanks to its rapidly growing population and business draw.
