The 5 housing markets to watch in 2025 — especially if you’re an investor

Rapid organization maturation and affordability are fueling immoderate of nan hottest markets investors request to support an oculus connected successful 2025.

And Dallas, which saw nan largest summation successful organization successful 2023, according to the U.S. Census Bureau, is ripe arsenic an investor’s market.

Four different cities—including Miami; Houston; St. Petersburg-Tampa, FL; and Nashville, TN— classed precocious successful nan Emerging Trends successful Real Estate 2025 report from Price Waterhouse Coopers and nan Urban Land Institute, which identified nan 5 basking markets buyers and investors should watch successful nan coming year.

The study looked astatine various factors, including nan existent section market, homebuilding and caller building prospects, and wide existent property prospects to find nan hottest markets.

Sun Belt cities made up 13 of nan apical 20 markets to watch, drafting liking because of their thriving economies and comparative affordability.

Other celebrated areas are what PWC/ULI dubbed “18-hour cities,” specified as Denver; Charlotte, NC; and Ft. Lauderdale, FL. These cities haven’t wholly developed into markets pinch 24/7 amenities and access, but they tin compete against larger cities because of their comparative affordability.

“Supernova cities,” aliases cities that person seen immense amounts of maturation comparative to nan wide U.S. population, besides classed precocious connected nan “markets to watch” list. Those cities, which include Austin, TX, and Raleigh-Durham, NC, are projected to spot 8% successful organization maturation complete nan adjacent 5 years, compared pinch nan U.S. organization maturation mean of 1.9%.

Here’s what makes Dallas, Miami, Houston, St. Petersburg-Tampa, and Nashville particularly charismatic for investors,

Dallas, TX

Median location database price: $434,500
Median monthly rent: $1,475

What’s Dallas’ concealed weapon? It’s accelerated organization growth.

“Dallas is 1 of nan champion cities for existent property investors successful 2025 owed to its accelerated growth, economical opportunities, business-friendly policies, and appealing lifestyle,” says Harrison Polsky, a existent property supplier at Douglas Elliman in Dallas.

Polsky says that’s partially because of nan ample number of Fortune 500 companies successful nan area. In 2023, Goldman Sachs broke ground on a $500 cardinal firm installation that will location complete 5,000 employees.

“North Texas’ increasing financial beingness is 2nd only to New York City,” says Polsky. Plus, nan metropolis is known for its comparatively affordable lodging that mightiness entreaty to families who are “priced retired of coastal metros.”

Miami, FL

Median location database price: $535,000
Median monthly rent: $1,227

Steady request successful nan Miami area has driven up rent and spot values.

“The dependable request drives up rents and spot values and offers investors charismatic rental yields astir 5% to 7% pinch imaginable appreciation adjacent 6% to 8% successful sought-after neighborhoods,” says Ron Myers of Ron Buys Florida Homes in Wellington, FL.

However, Myers warns of immoderate of nan imaginable complications investors successful nan area mightiness face. While Floridians use from a deficiency of income tax, they besides look higher-than-average security premiums and elevated ambiance risks.

“Investors focused connected properties pinch elevated building aliases successful little flood-prone areas whitethorn find amended semipermanent returns contempt nan precocious security costs,” he says.

Houston, TX

Median location database price: $369,450
Median monthly rent: $1,375

Nearly 140,000 people moved to Houston betwixt 2022 and 2023—partly because of nan city’s thriving wellness care, tech, and greenish power sectors. Businesses location use from development-friendly policies, including a deficiency of general zoning laws successful nan city.

Still, Houston remains comparatively affordable, pinch median location database prices and monthly rental prices below nan nationalist average.

“Dallas and Houston are seeing tons of economical growth, pinch occupation opportunities expanding significantly, mostly because of galore startups uncovering these cities to beryllium awesome places to make location base,” says Seamus Nally, CEO of TurboTenant.

“And erstwhile occupation opportunities grow, truthful does population,” adds Nally. “Lots of group are moving to these cities for nan opportunities, which is awesome for investors who tin get their ft successful nan door.”

Tampa-St. Petersburg, FL

Median location database price: $399,999
Median monthly rent: $1,720

Tampa-St. Petersburg saw a immense organization influx during nan COVID-19 pandemic. However, that seems to person slowed down, says Robert Washington of Savvy Buyers Realty in St. Petersburg.

“Many of nan prospective buyers that I speak pinch person elected to hold for owe rates to travel down earlier making nan move,” he says. “I deliberation a batch of that pent-up request will commencement to travel backmost into nan marketplace erstwhile rates commencement to travel backmost down.”

From an finance standpoint, nan occupation maturation prediction unsocial makes it an charismatic market, according to Alee Douglass, a agent subordinate with Premier Sotheby’s International Realty in Tampa.

“With nan forecast astatine 2.3 times nan nation’s five-year forecast, location is going to beryllium a continued request for lodging and a continued influx of group moving to our area,” she says.

Investors thrive successful nan Tampa-St. Petersburg marketplace because of nan lukewarm upwind and charismatic beaches, which tie seasonal residents.

“While we person had an summation successful regulations connected short-term rentals, location are definite areas wherever they are approved, and investors guidelines to make a important ROI,” says Douglass.

The area offers debased vacancies and rental yields astir 4% to 6%, pinch projected appreciation astatine astir 5% to 6% successful maturation neighborhoods, adds Myers.

But, conscionable arsenic successful Miami, investors should besides see ambiance and security costs.

“Tampa-St. Pete’s dependable request and affordable introduction points make it a coagulated investment, provided investors stay mindful of nan region’s ambiance risks.”

Nashville, TN

Median location database price: $542,447
Median monthly rent: $1,578

After 3 years astatine nan apical spot, Nashville dropped to 5th spot connected nan 2025 list. However, it remains 1 of nan fastest-growing markets successful nan country.

The state euphony basking spot grew by 86 group a day throughout 2023, according to U.S. Census Bureau data.

That maturation has led to an summation successful lodging prices, but nan costs of doing business successful nan area remains somewhat little than nan nationalist average, and nan firm taxation rate—while higher than Florida aliases Texas—remains little than galore different awesome markets, according to nan report.