The hottest places to buy a home in 2025
With interest rates forecasted to come down, 2025 is expected to be a big year for home buying.
For first-time buyers, finding the right up-and-coming city could help boost the value of their investment. A pair of reports — one from Clever Real Estate and one from Realtor.com — highlight what should be some of the hottest housing markets over the year.
See which metro areas project as the most popular real estate markets in 2025.
Check your home buying options. Start hereThe up-and-coming cities for 2025
With the largest and most populous cities typically quite expensive and competitive, first-time home buyers have branched out to find other places boasting similar amenities with better affordability.
These tend to be quieter, secondary cities that swell in popularity (and then realize associated property value gains). A report from Clever Real Estate identified the best up-and-coming housing markets for 2025, analyzing the 51st- through-200th-most-populated U.S. metros.
Overall, these locales usually skew younger, center around a large university, and offer well-paid employment. To rank the places most primed to attract borrowers in 2025, it used a combined weighted average from 11 categories — covering housing prices, age, income, education, unemployment, and more.
“Many are college towns that have young, innovative populations,” said Jaime Seale, content writer at Clever Real Estate. “The universities provide local businesses with a steady supply of talented employees with at least a bachelor’s degree. While young people come for college, many of them stay for job opportunities. Besides the jobs, these cities are enjoyable places to live, with most boasting high levels of walkability and bikeability.”
Madison, Wisc., topped the list behind its combination of low unemployment, high education, and strong culture. Fargo, N.D., with high affordability and employment options; Lincoln, Neb., lead by low costs of living; Provo, Utah and its high salaries and vibrant outdoor offerings; and the arts and intellect of New Haven, Conn., round out the top five.
Below are the top 20 most “up-and-coming” cities for 2025, according to Clever:
| Rank | City | Median Age of Residents | Median Household Income | Typical Home Price | Home-Price-to-Income Ratio* | Home Value Change, Last 12 Months | Home Value Change, Last 5 Years | Home Value Projection, Next 12 Months | % Adults With Bachelor's Degree | Walk Score** | Bike Score** | Unemployment Rate |
| 1 | Madison, WI | 37 | $82,132 | $410,758 | 5 | 5.45% | 46.01% | 0.2% | 49.2% | 50 | 66 | 2.1% |
| 2 | Fargo, ND | 33 | $72,889 | $301,802 | 4.1 | 2.09% | 23.76% | -2.6% | 42.9% | 45 | 49 | 2.3% |
| 3 | Lincoln, NE | 35 | $71,163 | $285,609 | 4 | 1.60% | 40.78% | -0.2% | 42.0% | 44 | 59 | 2.6% |
| 4 | Provo, UT | 26 | $100,791 | $526,689 | 5.2 | 0.79% | 48.06% | -0.2% | 45.4% | 45 | 63 | 4% |
| 5 | New Haven, CT | 41 | $80,733 | $371,447 | 4.6 | 8.03% | 63.64% | 3% | 42.4% | 68 | 66 | 3.3% |
| 6 | Omaha, NE | 37 | $81,376 | $286,917 | 3.5 | 2.52% | 47.80% | 0.4% | 40.1% | 48 | 42 | 2.9% |
| 7 | Ann Arbor, MI | 36 | $83,754 | $401,888 | 4.8 | 3.30% | 29.40% | -1.5% | 60.2% | 52 | 71 | 4.2% |
| 8 | Fayetteville, AR | 35 | $77,695 | $341,267 | 4.4 | 3.47% | 66.85% | 2.8% | 36.6% | 32 | 50 | 2.6% |
| 9 | Portland, ME | 44 | $92,117 | $517,768 | 5.6 | 3.81% | 66.23% | 3% | 48% | 62 | 68 | 2.2% |
| 10 | Hartford, CT | 41 | $92,176 | $364,106 | 4 | 8.51% | 58.39% | 2.5% | 42.5% | 67 | 54 | 3.5% |
| 11 | Savannah, GA | 37 | $75,196 | $340,561 | 4.5 | 6.37% | 68.24% | 2.8% | 37.2% | 44 | 52 | 3.8% |
| 12 | Gainesville, FL | 35 | $59,290 | $303,193 | 5.1 | 2.07% | 53.22% | 0.9% | 43.3% | 37 | 69 | 3.9% |
| 13 | Boulder, CO | 38 | $95,363 | $727,478 | 7.6 | -0.03% | 34.86% | -1.9% | 65.4% | 56 | 86 | 4.1% |
| 14 | Des Moines, IA | 37 | $82,728 | $281,118 | 3.4 | 2.97% | 34.45% | -1.2% | 39.8% | 45 | 39 | 3.4% |
| 15 | Ogden, UT | 33 | $100,461 | $493,061 | 4.9 | 1.73% | 55.38% | 1.2% | 35.3% | 44 | 44 | 3.7% |
| 16 | Fort Collins, CO | 37 | $88,182 | $551,486 | 6.3 | 1.22% | 34.52% | -1.5% | 52.9% | 37 | 78 | 3.9% |
| 17 | Manchester, NH | 41 | $103,727 | $483,913 | 4.7 | 6.92% | 64.87% | 2.9% | 42.8% | 51 | 42 | 3% |
| 18 | College Station, TX | 29 | $54,680 | $299,406 | 5.5 | 1.12% | 33.26% | -1.5% | 39.7% | 34 | 62 | 3.6% |
| 19 | Bridgeport, CT | 41 | $111,058 | $624,506 | 5.6 | 7.19% | 53.09% | 1.4% | 51.9% | 66 | 49 | 3.6% |
| 20 | Lansing, MI | 36 | $70,007 | $231,338 | 3.3 | 5.59% | 43.71% | 0.3% | 37.9% | 46 | 55 | 4.4% |
| – | National Average | 39 | $77,719 | $359,892 | 4.6 | 2.70% | 48.20% | 1.1% | 36.2% | 40 | 45 | 4.4% |
** Based on a 100-point scale.
The hottest housing markets for 2025
As more prospective home buyers are expected to come off the sidelines, activity in the housing market should trend upwards in 2025.
With sales anticipated to grow, some housing markets will see more action — and in turn, price gains — than others. Knowing where that’s more likely to happen can give you a competitive advantage whether you’re a buyer or seller.
A report from Realtor.com forecasted 2025 home price and sales growth for the 100 largest U.S. housing markets. The hottest projected metro areas for the year contain some combination of comparative affordability, high for-sale inventory, and a younger household demographic.
“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,” said Danielle Hale, chief economist at Realtor.com.
Colorado Springs, Colo., topped the chart with a combined 2025 existing home sales and price growth of 39.8%. Miami (33%), Virginia Beach, Va. (29.9%), El Paso, Texas (27.8%), and Richmond, Va. (27.6%), followed next.
Find your lowest interest rate. Start hereOverall, the 100 largest metro areas have an estimated combined annual growth of 15.2% (7.4% home prices, 7.8% sales) versus 5.2% (3.7% prices, 1.5% sales) for the national average.
The table below shows the top 20 U.S. housing markets by combined 2025 home sales and price growth, according to Realtor.com:
| Rank | Metro Area | Combined 2025 Existing Home Sales and Price Growth | 2025 Existing Home Sale Counts Year-over-Year | 2025 Existing Home Sale Counts vs 2017-2019 Average | 2025 Existing Home Median Sale Price Year-over-Year | 2025 Existing Home Median Sale Price vs 2017-2019 Average |
| 1 | Colorado Springs, CO | 39.8% | 27.1% | -5.6% | 12.7% | 88.9% |
| 2 | Miami | 33.0% | 24.0% | -0.7% | 9.0% | 100.5% |
| 3 | Virginia Beach, VA | 29.9% | 23.4% | 24.5% | 6.6% | 57.3% |
| 4 | El Paso, TX | 27.8% | 19.3% | 1.3% | 8.4% | 71.1% |
| 5 | Richmond, VA | 27.6% | 21.6% | 31.7% | 6.1% | 68.8% |
| 6 | Orlando, FL | 27.3% | 15.2% | 32.1% | 12.1% | 82.6% |
| 7 | McAllen, TX | 26.8% | 19.8% | 18.4% | 7.0% | 47.5% |
| 8 | Phoenix | 25.5% | 12.2% | 19.1% | 13.2% | 76.1% |
| 9 | Atlanta, GA | 25.3% | 15.1% | -7.7% | 10.2% | 51.9% |
| 10 | Greensboro, NC | 25.0% | 17.3% | 11.0% | 7.7% | 51.6% |
| 11 | Tucson, AZ | 24.8% | 12.5% | 0.1% | 12.4% | 40.3% |
| 12 | Austin, TX | 24.7% | 14.5% | -7.4% | 10.2% | 89.1% |
| 13 | Durham, NC | 24.2% | 14.1% | -7.8% | 10.1% | 102.0% |
| 14 | Charlotte, NC-SC | 24.1% | 15.7% | -11.2% | 8.4% | 92.6% |
| 15 | Little Rock, AR | 23.4% | 18.6% | 7.3% | 4.8% | 49.6% |
| 16 | Jacksonville, FL | 23.3% | 13.5% | 7.6% | 9.8% | 69.6% |
| 17 | Cape Coral, FL | 22.8% | 13.2% | 5.7% | 9.6% | 64.2% |
| 18 | Washington, DC | 22.0% | 17.0% | -7.9% | 5.0% | 94.1% |
| 19 | Harrisburg, PA | 21.9% | 16.8% | -15.5% | 5.1% | 64.3% |
| 20 | Denver | 21.6% | 13.6% | 6.9% | 8.0% | 89.3% |
| - | Top-100 Market Average | 15.2% | 7.8% | - | 7.4% | - |
| - | National Average | 5.2% | 1.5% | - | 3.7% | - |
Advice for home buyers
The home buying market is projected to ramp up in 2025 as many anticipate mortgage rates to descend.
Competition will likely be high if rates decrease — especially in some of the cities highlighted above — but you can boost your borrower profile by being prepared, learning to negotiate, how to shop around for rates, and finding financial assistance.
If you’re ready to begin your homeownership journey, reach out to a local mortgage lender today and get started.
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