Housing News

Is 2025 Your Year to Buy a Home? Check out the Top 10 Hottest Housing Markets Predicted for the New Year

Those looking to buy a home in the new year may want to head to Colorado Springs.

The Colorado Springs, Colo. metropolitan region, at the edge of the Rocky Mountains, was named the top housing market in 2025, according to a recent Realtor.com report.

Eight of the rest of the top 10 are located in the South, where homebuyers may be able to find some relief from the lack of homes for sale and the affordability challenges that are seen in other parts of the country. The cost of living in seven out of the top 10 markets is more affordable than the U.S. average.

“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 Realtor.com Chief Economist Danielle Hale in a statement.

To come up with its findings, Realtor.com estimated 2025 housing market and economic data to come up with its forecast. Metros were ranked based on forecasted home price and sales growth.

The top housing market for 2025

Buyers interested in purchasing a home in Colorado Springs, just over an hour south of Denver near several military installations, may not want to waste any time. The metro is expected to see strong home price growth in 2025.

The median home list price in the metro wasn’t cheap at $489,900 in November, according to Realtor.com data. However, it was about 21% lower than the $593,900 median price tag in Denver.

Existing home sales and price growth in Colorado Springs are anticipated to rise by a combined 39.8% year-over-year in 2025, according to Realtor.com. (This excludes new construction.)

The most affordable top housing market for 2025

Buyers on a tight budget may want to consider McAllen, Texas. The city, which sits on the U.S.-Mexico border, is the most affordable market on the top 10 list.

The median home list price in the metro was $270,000 in November, down about 3.6% year-over-year, according to Realtor.com. That price tag is also about 35% less than the national median list price of $416,880.

In addition, the cost of necessities in the McAllen area is 13% below the national average.

However, in the new year, existing sales and price growth are expected to jump 26.8% year-over-year.

The top 10 housing markets in 2025

The top 10 housing markets are:

1. Colorado Springs, Colo.
2. Miami
3. Virginia Beach, Va.
4. El Paso, Texas
5. Richmond, Va.
6. Orlando, Fla.
7. McAllen, Texas
8. Phoenix
9. Atlanta
10. Greensboro, N.C.

How home loans are affecting the housing markets

In addition to inventory and affordability, government-backed loans are playing a significant role in the predicted growth of these top markets, according the Realtor.com report.

Government loans, like Veterans Affairs (VA) loans, Federal Housing Administration (FHA) loans, and U.S. Department of Agriculture (USDA) loans, made up more than half of recent mortgages in Colorado Springs, El Paso, Texas, and Virginia Beach, VA.

Buyers who use VA and USDA loans don’t need to make down payments, while those who take out FHA loans may be able to put down as little as 3.5%. And as these loans often offer more flexible requirements, they may help more people afford homes.

“The relative affordability and availability of new and existing homes in the Sun Belt [the regions across the Southeast and Southwest] alongside the opportunity created from buyers in these regions being better able to access government-backed financing via VA and FHA loans are going to be difference-makers,” said Hale.