2025 Real Estate: 11 States That Will Have the Top 25 Markets The U.S. real estate market is constantly evolving, and as we approach 2025, it’s clear that some states are positioning themselves as prime areas for investment. From economic factors to population shifts, real estate trends are pointing to certain states emerging as leaders. But which ones are expected to dominate the market in the next few years? In this article, we’ll take a deep dive into the top real estate markets for 2025, highlighting the 11 states that will house the top 25 real estate markets. Understanding these trends is crucial for buyers, sellers, and investors looking to make informed decisions.
Recently, Realtor.com released its housing forecast for 2025, predicting that mortgage rates will remain steady despite the continued rise in home prices. However, with significant shifts on the horizon, especially with the potential return of Donald Trump to the White House in January, the American housing market could face some changes.
Realtor.com highlights that during Trump’s previous tenure, the housing market flourished due to business-friendly policies, tax cuts, and extensive deregulation. With this in mind, it’s reasonable to anticipate a similar approach in 2025.
At the same time, mortgage rates are expected to ease, and with an increase in home construction, the housing deficit is slowly closing. Based on these trends, Realtor.com has compiled a list of the top 100 real estate markets to watch in 2025.
To simplify things, GOBankingRates has gathered the top forecasted real estate markets in 2025 along with the 11 states that will host them.
The Shift Toward High-Growth Real Estate Markets
In the wake of the pandemic, certain regions have shown a remarkable resilience and growth potential in the real estate sector. As remote work continues to thrive and more businesses shift to hybrid models, homebuyers and investors are focusing on markets with strong job growth, affordable housing, and high quality of life.
Key Factors Driving Market Growth in 2025:
- Population Growth: States with a growing population, especially young professionals, are seeing a surge in demand for both rental and for-sale properties.
- Economic Stability: States with diverse and robust economies are attracting more people looking to relocate for job opportunities.
- Housing Affordability: As home prices rise in traditionally high-demand cities, buyers are seeking more affordable alternatives in suburban or smaller metro areas.
Top 11 States with the Best Real Estate Markets in 2025
Based on current data and emerging trends, these are the 11 states that are expected to dominate the top 25 real estate markets in 2025:
1. Florida
Florida continues to be a powerhouse in real estate, with Miami, Tampa, and Orlando seeing explosive growth. With its favorable tax policies, strong tourism industry, and warm climate, Florida remains a top destination for both residents and investors.
- Why Florida?
- Strong job growth
- No state income tax
- Affordable housing relative to other top markets
2. Texas
Texas is another state experiencing rapid expansion, with cities like Austin, Dallas, and Houston leading the charge. The state’s diverse economy, growing tech scene, and relatively low cost of living make it a top contender for real estate success.
- Why Texas?
- Booming tech industry
- Low cost of living and property taxes
- Fast-growing metro areas
3. North Carolina
North Carolina, particularly Charlotte and Raleigh, is experiencing a real estate renaissance. With affordable housing, a strong job market, and a growing population, it’s an attractive destination for homebuyers and investors alike.
- Why North Carolina?
- Rising tech hub
- High quality of life
- Affordable housing options
4. Georgia
Atlanta has long been a strong real estate market, but Georgia as a whole is seeing substantial growth. The state’s diversified economy, excellent transportation infrastructure, and low property taxes make it an appealing choice for real estate investment.
- Why Georgia?
- Rapid growth in metro areas like Atlanta
- Strong job creation and economic stability
- Affordable cost of living
5. Tennessee
With booming cities like Nashville and Knoxville, Tennessee is becoming a sought-after destination for real estate buyers. The state’s absence of state income tax, combined with its cultural offerings and business-friendly environment, adds to its allure.
- Why Tennessee?
- Low tax burden
- Booming job market
- Popular music and cultural scenes
6. Arizona
Cities like Phoenix and Tucson are seeing an influx of new residents due to their lower cost of living, great weather, and job opportunities. Arizona is becoming an increasingly attractive market for first-time buyers and investors.
- Why Arizona?
- Rapid population growth
- Strong job growth in sectors like tech and healthcare
- Lower housing costs compared to many other states
7. Nevada
Nevada, especially Las Vegas, has been experiencing significant real estate growth, fueled by a recovering tourism industry and a surge in tech jobs. The state’s low taxes and favorable climate continue to draw new residents.
- Why Nevada?
- No state income tax
- Strong growth in Las Vegas real estate
- Job opportunities in tech, tourism, and entertainment
8. Idaho
Idaho’s real estate market has been heating up, especially in Boise, where a combination of affordable housing and a great quality of life has made it an appealing option for families and remote workers.
- Why Idaho?
- Rapid population growth
- Lower home prices than traditional west coast cities
- Increasing job opportunities in tech and healthcare
9. Colorado
With its beautiful landscapes and outdoor lifestyle, Colorado, particularly Denver and Colorado Springs, continues to attract residents. The state’s tech and energy sectors, combined with its thriving tourism industry, make it an ideal location for investment.
- Why Colorado?
- Strong economy and job market
- High quality of life and outdoor amenities
- Increasing demand for housing in metro areas
10. Utah
Salt Lake City is rapidly growing due to its booming tech sector and lower cost of living compared to other tech hubs. With ample job opportunities and stunning natural scenery, Utah is becoming a hotspot for real estate.
- Why Utah?
- Booming tech industry
- Affordable cost of living
- High quality of life and outdoor activities
11. Ohio
Ohio’s real estate market is expected to see substantial growth, particularly in Columbus and Cincinnati. With affordable housing, a growing job market, and a lower cost of living, Ohio is gaining traction as a top real estate destination.
- Why Ohio?
- Affordable housing market
- Growing job market
- Increasing demand in metro areas
Conclusion
The top real estate markets in 2025 are being shaped by factors such as population growth, economic stability, and affordability. States like Florida, Texas, North Carolina, and others are poised to lead the way, attracting investors and homebuyers alike. Whether you’re looking for a home or seeking to invest in real estate, these 11 states should be on your radar as the market continues to evolve.
FAQs
1. Which state will have the best real estate market in 2025?
Florida, Texas, and North Carolina are expected to lead the top 25 real estate markets in 2025 due to strong job growth, affordable housing, and economic stability.
2. Why is Texas a top contender for real estate investment?
Texas offers a low cost of living, a booming tech industry, and fast-growing metro areas like Austin and Dallas, making it an attractive state for investment.
3. What is driving the growth of real estate in Arizona?
Arizona is experiencing population growth, low housing costs, and job opportunities in tech and healthcare, making it a strong real estate market.
4. How will Nevada’s real estate market perform in 2025?
With no state income tax and growth in Las Vegas’ real estate, Nevada is expected to remain a hot market, especially with its burgeoning tech and tourism sectors.
5. Which cities in Colorado are experiencing growth?
Denver and Colorado Springs are seeing increasing demand for real estate, driven by strong job markets and a high quality of life.
6. How does Ohio’s real estate market compare to other states?
Ohio offers affordable housing and growing job markets in cities like Columbus and Cincinnati, making it a strong contender for real estate investment.
