Realtor.com Reveals Top 5 Housing Markets Poised For Growth In 2025 – A Guide For Savvy Investors

Rapid population growth and affordability are driving investor interest in several key markets for 2025.

According to the U.S. Census Bureau, Dallas experienced the largest population increase in 2023 and is poised to be a significant investor market.

Other hot markets identified in PricewaterhouseCoopers’ (PwC) Emerging Trends in Real Estate 2025 report include Miami, Houston, St. Petersburg-Tampa, Florida and Nashville, Tennessee.

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The report considered various factors, including local market dynamics, new construction activity and overall real estate trends, to determine the hottest real estate markets.

Sun Belt cities claimed 13 of the top 20 spots, attracting investor attention with their thriving economies and relatively affordable housing.

Cities like Denver, Charlotte, North Carolina and Fort Lauderdale, Florida, dubbed "18-hour cities" by PWC and the Urban Land Institute, are gaining popularity. Though not quite 24/7, their affordability gives them a competitive edge over larger cities.

"Supernova cities" like Austin, Texas and Raleigh-Durham, North Carolina, are also hot markets. With projected growth of 8% over five years, they far outpace the national average of 1.9%.

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However, Dallas, Miami, Houston and St. Petersburg are particularly attractive to investors. Here's why.

Dallas

Median home list price: $434,500

Median monthly rent: $1,475

What's the secret to Dallas's success? It's simple: rapid population growth.

This booming metropolis, with its robust economy, business-friendly climate and affordable housing, is a magnet for real estate investors.

Many Fortune 500 companies are located in the area and Goldman Sachs broke ground in 2023 on a $500 million corporate facility that will house more than 5,000 employees.

"North Texas's growing financial presence is second only to New York City," said Harrison Polsky, a real estate agent at Douglas Elliman in Dallas.

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Miami

Median home list price: $535,000

Median monthly rent: $1,227

Miami's strong demand pushes higher rents and property values, creating lucrative investment opportunities.

Investors can see significant returns with rental yields of 5% to 7% and potential appreciation of 6% to 8%.

However, high insurance costs and climate risks are factors to consider. Investing in properties in less flood-prone areas can help mitigate the risks and maximize long-term returns.

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Houston

Median home list price: $369,450

Median monthly rent: $1,375

Houston is experiencing a population boom, thanks to its thriving health care, tech and green energy sectors. Between 2022 and 2023, nearly 140,000 people moved to the city.

The city's business-friendly environment and affordable housing make it an attractive destination for businesses and residents. The surge in demand is a golden opportunity for real estate investors.

"Dallas and Houston are seeing lots of economic growth, with job opportunities expanding significantly, largely because of many startups finding these cities to be great places to make home base," TurboTenant CEO Seamus Nally said. "And when job opportunities grow, so does population."

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Tampa-St. Petersburg

Median home list price: $399,999

Median monthly rent: $1,720

Tampa-St. Petersburg's popularity surged during the pandemic, but the recent slowdown in population growth hasn't dampened its appeal for investors.

With strong job growth and a desirable lifestyle, the area continues to attract new residents.

While climate risks and insurance costs are considerations, the potential for solid rental yields of about 4% to 6% and appreciation of 5% to 6% make it a compelling investment.

"Tampa-St. Pete's steady demand and affordable entry points make it a solid investment, provided investors remain mindful of the region's climate risks," said Alee Douglass, a broker associate with Premier Sotheby's International Realty in Tampa.

Nashville

Median home list price: $542,447

Median monthly rent: $1,578

Nashville, the former top-ranked market, has cooled slightly, slipping to fifth place in 2025.

Nevertheless, it remains one of the fastest-growing markets in the country, experiencing a daily population increase of 86 people throughout 2023, according to data from the U.S. Census Bureau.

While housing prices have increased, the area's lower cost of doing business and competitive corporate tax rate make it an attractive destination for businesses.

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