Andrew Mattie SVP, Engineering | realtors.com
The housing market is expected to experience significant growth in certain U.S. cities in 2025, despite high mortgage rates. According to Realtor.com, home sales in the top housing markets are projected to increase between 13.5% and 27.1%, compared to a national growth rate of just 1.5%.
These promising markets share common characteristics: they are located mainly in the South and West, have shown recent sales growth, offer abundant inventory due to new construction, and have younger populations with military or international connections. They also benefit from flexible work arrangements and relatively lower costs.
High mortgage rates have been less impactful in these areas due to higher outright homeownership rates and more residents qualifying for government-backed loans like VA and FHA loans.
Colorado Springs, CO leads the list of top markets for 2025, followed by Miami, FL; Virginia Beach, VA; Richmond, VA; McAllen, TX; El Paso, TX; Little Rock, AR; Greensboro, NC; Washington DC; and Harrisburg, PA.
Realtor.com Chief Economist Danielle Hale commented on these trends: “Although affordability is still stretched for many households in these markets... aspiring homeowners are able to create opportunities... as a result of government-backed loan programs that enable lower down payments.”
Real estate agent Branden Rivero noted Miami's appeal due to its cultural blend and active social scene: “The real estate market buzzes with activity as both locals and international buyers flock...” Cedric Stewart highlighted Washington DC’s draw for those seeking employment without New York City's busyness.
The report forecasts that home sales will peak next June across the United States.
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