Despite ongoing challenges in the U.S. housing market, including elevated mortgage rates and affordability concerns, certain metropolitan areas are poised for significant growth in home sales in 2025. According to Realtor.com’s latest forecast, cities such as Colorado Springs, Miami, and Virginia Beach are expected to lead the nation in home sales growth, with projected increases ranging from 13.5% to 27.1% .
Colorado Springs, Colorado, tops the list with an anticipated 27.1% year-over-year increase in existing-home sales. The city’s appeal is attributed to its scenic mountain views, strong community ties, and a robust job market, particularly in the defense and technology sectors. The median list price in November 2024 was $485,000, reflecting a 12.7% projected price appreciation .
Miami, Florida, is projected to see a 24% increase in home sales. The city’s vibrant cultural scene, international appeal, and favorable climate continue to attract both domestic and foreign buyers. With a median list price of $525,000 in November 2024, Miami offers a diverse range of housing options to meet varying buyer preferences .
Virginia Beach, Virginia, is expected to experience a 23.4% rise in home sales. The area’s extensive coastline, military presence, and growing economy make it an attractive destination for families and retirees alike. The median list price stood at $394,900 in November 2024, indicating a 6.6% projected price growth .
Other cities projected for notable home sales growth include:
- El Paso, Texas: 19.3% increase in sales, with a median list price of $289,950.
- Richmond, Virginia: 21.6% sales growth, median list price at $429,595.
- Orlando, Florida: 15.2% increase in sales, median list price of $425,000.
- McAllen, Texas: 19.8% sales growth, with a notably affordable median list price of $269,000.
- Phoenix, Arizona: 12.2% increase in sales, median list price at $415,000.
- Atlanta, Georgia: 15.1% sales growth, median list price of $401,405.
- Greensboro, North Carolina: 17.3% increase in sales, median list price at $324,249 .
These cities share common factors contributing to their projected growth: relative affordability compared to national averages, expanding job markets, and increasing housing inventory due to new construction. Additionally, many of these areas have higher proportions of younger families and military personnel, demographics that are actively participating in the housing market.
Nationally, existing-home sales are forecasted to grow modestly by 1.5% in 2025, reaching approximately 4.07 million sales. While mortgage rates are expected to remain elevated, averaging around 6.3%, the combination of increased inventory and targeted affordability in these key markets offers opportunities for prospective homebuyers .