The 5 housing markets to watch in 2025 — especially if you’re an investor
Rapid population growth and affordability are fueling some of the hottest markets investors need to keep an eye on in 💧2025.
And Dallas, which saw the largest increase in population in 2023, according t🌼o the U.S. Cen𒀰sus Bureau, is ripe as an investor’s market.
Four other cities—including Miami; Houston; St. Petersburg-Tampa, FL; and Nashville, TN— ranked high in the Emerging Trends in Real Estate 2025 report 🌞;from Price Waterhouse Coopers and the Urban Land Institute, which identified the five hot markets buyers and investors should watch in the coming year.
The report looked at various factors, including the current local market, homebuilding and new construction prospects, and overall real est🙈ate prospects to deter🏅mine the hottest markets.
Sun Belt cities made up 13 of the top 20 markets to watch, drawing interest because of their thriving e💯conomies and relative affordability.
Other popular areas are what PWC/ULI dubbed “18-hour cities,” such as Denver; Charlotte, NC; and Ft. Lauderdale, FL. These cities haven’t entirely developed 😼into markets wi😼th 24/7 amenities and access, but they can compete against larger cities because of their relative affordability.
“Supernova cities,” or cities that have seen vast amounts of growth relative to the overall U.S. 🧸population, also ranked high on the “markets to watch” list. Those cities, which include Austin, TX, and Raleigh-Durham, NC, are projected to see 8% in population growth o🃏ver the next five years, compared with the U.S. population growth average of 1.9%.
Here’s what makes Dallas, Miami, ♈Houston, St. Petersburg-Tampa, and Nashville especially attractive for in꧟vestors,
Median home list price: $434,500
Median monthly rent: $1,475
W🐭hat’s Dallas’ secret weapon? It’s rapid population growthꦕ.
“Dallas is one of the best cities for real estate inves🅘tors in 2025 due to its rapid growth, economic opportunities, business-friendly policies, and appealing lifestyle,” says Harrison Polsky, a real estate agent at Douglas Elliman&nbsꦦp;in Dallas.
Polsky says that’s💛 partly because of the large number o♛f Fortune 500 companies in the area. In 2023, Goldman Sachs broke ground on a $500 million corporate facility that will house over 5,000 employees.
“North Texas’ growing financial presence is second only to Nܫew ๊York City,” says Polsky. Plus, the city is known for its relatively affordable housing that might appeal to families who are “priced out of coastal metros.”
Median home list price: $535,000
Median monthly rent: $1,227
Steady 🌳demand in the Miami area has driven up rent and p🎶roperty values.
ไ“The steady demand drives up rents and property values and offers investors attractive rental yields around 5% tꦰo 7% with potential appreciation near 6% to 8% in sought-after neighborhoods,” says Ron Myers of Ron Buys Florida Homes in Wellington, FL.
Howꦰever, Myers warns of some of the potential complications investors in the area might face. While Floridians benefit from a lack of income tax, they also face higher-than-ave♑rage insurance premiums and elevated climate risks.
“Investors focused on properties with elevated construction or in less flood-prone areas may find better long-term returns despit𓆏e the high insurance costs,” he says.
Median home list price: $369,450
Median monthly rent: $1,375
Nearly people moved to Houst♒on between 2022 and 2023—partly because of the city’s thriving health care, tech, and green energy sectors. Businesses there benefit from deꦕvelopment-friendly policies, including a lack of formal zoning laws in the city.
Still, Houston remains relatively affordable, with median home list prices and month♚ly below the national average.
“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,” says Seamus Nally, CEO of&n🔯bsp;.
“And when j🥂ob opportunities grow, so does population,” adds Nally. “Lots of people are moving to these cities for the opportunities, which is great for investors who can get ꧅their foot in the door.”
Median home list price: $399,999
Median monthly rent: $1,720
Tampa-St. Petersburg saw a vast population influx during the COVID-19 pandemic. However, that seems to have slowed down, says Robert Washingꦫton of in St. Petersburg.
“Many of the prospective buyers that I speak with have elected to wait for📖 mortgage rates to come down before making the mo𓂃ve,” he says. “I think a lot of that pent-up demand will start to come back into the market once rates start to come back down.”
From an investment standpoint, the jꦦob growth prediction alone makes it an attra🦋ctive market, according to Alee Douglass, a broker associate with in Tampa.
“With the forecast at 2.3 times the nation’s five-year forecast, there is going to be a continued 🦩demand for housing and a continued in꧑flux of people moving to our area,” she says.
Investors thrive in the Tampa-St. Petersburg market because of the warm weather𒐪 and attractive be🐷aches, which draw seasonal residents.
“While we have had an ☂increase in regulations on short-term rentals, there are certain areas where they are approved, and investors stand to make a substantial ROI,” says Douglass.
The🎃 area offers low vacancies and rental yields around 4% to 6%, with projected appreciation at roughly 5% to 6% in growth neighborhoods, adds Myers.
But, just as in Miami, investors should also consider climate and insuranc🤡🌊e costs.
“Tampa-St. Pete’s steady demand and affordable entry points make it a solid investmeওnt, provided investors remain mindful of the region’s climate risks.”
Median home list price: $542,447
Median monthly rent: $1,578
After three 💯years at the top spot, Nashville dropped to fifth place on the 2025 list. However, it remains one of the fastest-growing markets in the country.
The country music hot spot grew by throughout 2023, according to U♊.S. Census Bureau da𓄧ta.
That growth has led to an increase in housing prices, but the cost of doing business in the area remains slightly lower than the national average, and the corporate tax rate—while higher than Florida or Texas—remains lower💖 than many other major markets, according to the report.
