Colorado Springs tops the list of the best housing markets for 2025, according to Realtor.com.
The list, which highlights areas that are “primed and ready for growth in the year ahead,” focuses on markets that are characterized by moderately affordable homes, extensive inventory and a sizable base of younger families, many with military and international connections.
Realtor.com’s top 10 markets include only metropolitan areas in the South and West. The top spot was Colorado Springs, Colorado, followed by Miami, and the Virginia Beach area, which straddles the Virginia-North Carolina border.
Other metro areas on the list include El Paso, Texas; Richmond, Virginia; Orlando; McAllen, Texas; Phoenix; Atlanta and Greensboro, North Carolina.
The Sun Belt dominated this year’s list, with multiple markets from the states of Florida, Texas and Virginia. Seven of the top 10 markets are below the U.S. average for cost of living, with McAllen leading as the most affordable, with living costs 13% below the national average. Miami was the least affordable metro area, with housing costs taking up more than 42% of income and a general cost of living that is 11.5% above the national average.
While housing inventory is a problem throughout the country, the South and West are closer to pre-pandemic levels than the Midwest and the Northeast. Eight of the top 10 metros have seen year-over-year growth in single-family home construction. Builders are also constructing more affordable and smaller homes.
The top 10 markets are also identified as diverse communities that have younger households than the national average. Many of these metro areas also are home to large military populations.
“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,” said Danielle Hale, chief economist at Realtor.com. “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.”
