2025's Top Housing Markets: Where Home Sales Will Jump By Up To 27%, According To Report

Despite high mortgage rates squeezing the national housing market, several Sun Belt cities are set for explosive sales growth in 2025, with Colorado Springs leading an anticipated surge of up to 27% in transaction volume.

The military-heavy Colorado City tops Realtor.com's annual housing forecast, followed by Miami and Virginia Beach, where existing home sales are projected to jump 24% and 23.4%, respectively.

These increases dwarf the modest 1.5% growth expected nationwide.

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“Although affordability is still stretched for many households in these markets, as is the case just about everywhere, aspiring homeowners are able to create opportunities and access homeownership as a result of government-backed loan programs that enable lower down payments,” Danielle Hale, Realtor.com's chief economist, said in the report.

The forecast heavily favors the South and West, with Texas placing multiple cities in the top rankings. El Paso and McAllen, offering median list prices under $290,000, are projected to increase sales by 19%. According to the report, the Texas markets benefit from military presence, international connections and remote work flexibility.

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Local dynamics drive growth in Miami, where sales are expected to surge 24% despite a median list price of $525,000. “The real estate market buzzes with activity as both locals and international buyers flock to seize the opportunity to invest in this sunny paradise,” Miami real estate agent Branden Rivero said.

Virginia's strong showing includes Virginia Beach and Richmond in the top five, with projected increases of 23.4% and 21.6%. The coastal region's military concentration – the largest outside the Pentagon – bolsters the market through VA loan accessibility.

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Washington D.C., expecting 17% sales growth, offers an urban alternative to pricier metros. "DC is drawing people in that don't quite want the busyness of New York City but still favor good restaurants, lots of things to do and a top-rated mass transit system," says Cedric Stewart, a Keller Williams real estate expert.

Common threads among the growth markets include recent sales momentum, substantial inventory often driven by new construction and demographics skewing younger. Many feature high rates of outright homeownership without mortgage debt, helping buffer against interest rate pressures.

Charlotte is an example of the broad appeal driving the projections. “The Charlotte market is one of the fastest-growing real estate markets in the country, with over 100 people moving to Charlotte a day,” Kate Terrigno of Corcoran HM Properties was quoted in the report.

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