5 housing markets to watch in 2025

The U.S. is currently grappling with a difficult housing market that’s marked by high home prices, rising mortgage rates, and other costs that have put homeownership out of reach for many.

But even in a tough buyer’s environment, there are bright spots that have remained affordable and boast other attractive benefits, including sunny weather.

The South and the region known as the Sun Belt have become increasingly alluring, not only for people but for businesses and other growth. Given more lenient tax codes, business-friendly policies, larger and less expensive homes, and new developments in the works, this area has welcomed more domestic migrants than any other in the country.

Real estate site Realtor.com (NWSA) ranked the top 5 housing markets to watch in 2025. Click through to see which U.S. cities will be the most enticing in the new year.