2025 Housing Buzz: Which States Will Lead the Market?

Realtor.com’s latest housing forecast for 2025 brings critical insights into the future of the American housing market. With economic trends signaling stabilizing mortgage rates, a continued rise in home prices, and a potential shift in policy under another Donald Trump presidency, the dynamics of the housing sector could experience notable change.

During Trump’s previous tenure, the housing market benefited from pro-business measures, including tax cuts and deregulation policies. Many experts anticipate that similar approaches could shape market outcomes in 2025, prompting opportunities for real estate investing and financial planning.

However, ongoing trends like declining mortgage rates and increasing home construction activity continue to address the nation’s pressing housing deficit, signaling progress toward its resolution. Against this backdrop, Realtor.com has identified the top forecasted markets poised for substantial price growth and robust existing home sales. Here, a closer look at the metro areas projected to dominate 2025.

• Phoenix-Mesa-Scottsdale leads with a combined existing home sales and price growth of 25.5%.
• Tucson follows closely with a 24.8% increase.

Florida emerges as a multi-market leader, showcasing remarkable strength across several housing markets:

• Miami-Fort Lauderdale-West Palm Beach: 33% combined growth.
• Orlando-Kissimmee-Sanford: 27.3% growth.
• Additional hotspots like Jacksonville, Tampa-St. Petersburg-Clearwater, and Cape Coral-Fort Myers also project growth above 20%.

• Colorado Springs is slated for exceptional growth at 39.8%, the highest among all metro areas analyzed.
• The Denver-Aurora-Lakewood region will also see substantial gains at 21.6%.

• El Paso leads Texas with a 27.8% surge, reflecting increasing demand.
• Other metro areas like Austin-Round Rock and McAllen-Edinburg-Mission also exhibit strong growth, reflecting Texas’ attractiveness in the renting vs. owning debate.

• Georgia: Atlanta-Sandy Springs-Roswell projects a 25.3% combined growth.
• Virginia: Richmond and Virginia Beach-Norfolk-Newport News are notable regions, with respective growth rates of 27.6% and 29.9%.
• North Carolina: Charlotte and surrounding areas anticipate a surge, exceeding 24% growth.

These housing markets offer clues about where opportunities for real estate investing and financial planning may thrive over the next two years. As home construction accelerates and the housing deficit closes, targeted investments in these top forecasted markets could yield significant financial returns.

For aspiring homeowners, now may be a strategic time to buy a house, especially in metro areas experiencing growth in housing values. Similarly, real estate agents in these regions may see expanded opportunities as existing home sales activity increases.

Navigating the 2025 real estate markets will require balancing macroeconomic factors, policy changes, and shifting regional dynamics. Whether considering the merits of renting vs. owning, identifying the next big metro area, or leveraging policy incentives like tax cuts, staying informed will be critical to achieving real estate success.