Top 10 Housing Markets to See the Biggest Price Growth by 2025

As we look towards 2025, the housing market is expected to undergo a series of transformations influenced by various economic factors. Experts predict a stabilization in home prices after the explosive growth seen in previous years, with a trend towards moderate year-over-year appreciation.

In addition to price trends, housing inventory, and demand will also play critical roles. Housing starts are projected to remain weak in 2024 but rebound in 2025, suggesting a delayed response to the market’s needs. The rental market is expected to see a supply that outpaces demand, leading to a mild decline in median annual rents.

Competition for homes is likely to persist, spurred by low inventory, which has been a consistent trend in recent years. With that in mind, let’s delve into the top 10 housing markets poised for substantial home price increases in 2025, according to the latest data by Zillow.

Top Housing Markets to See the Biggest Price Growth by March 2025

1. Thomaston, GA

• Located in Georgia, Thomaston is emerging as a hot spot for real estate investment.
• With a steady increase in home prices, Thomaston offers investors an opportunity for substantial returns.
• From a modest 1.1% in April 2024 to an impressive 8.5% forecasted growth by March 2025, the market here is showing remarkable resilience and potential.

2. Kalispell, MT

• Montana’s Kalispell is another market to watch closely.
• With consistent growth projections, ranging from 1.1% to 8.4%, investing in Kalispell presents a promising opportunity.
• Its scenic beauty coupled with a thriving local economy makes it an attractive option for both homebuyers and investors alike.

3. Steamboat Springs, CO

4. Murray, KY

• Kentucky’s Murray boasts a diverse economy and a strong sense of community.
• With growth forecasts ranging from 1.8% to 7.1%, investing in Murray’s housing market could yield significant gains.
• Its strategic location and affordable housing options make it an appealing choice for investors looking for steady appreciation.

5. Crossville, TN & Knoxville, TN

• Tennessee presents not one but two promising housing markets in Crossville and Knoxville.
• Both markets show consistent growth projections, with Crossville ranging from 0.9% to 6.5% and Knoxville from 0.7% to 6.1%.
• Investors looking for stability and potential returns should consider these Tennessee markets.

6. Mountain Home, ID & Hailey, ID

• Idaho offers two enticing housing markets in Mountain Home and Hailey.
• With growth forecasts ranging from 0.7% to 6.3% for Mountain Home and 0.6% to 5.9% for Hailey, these markets show consistent appreciation potential.
• Investors drawn to Idaho’s natural beauty and growing economy should explore opportunities in these regions.

7. Augusta, ME & Lewiston, ME

• Maine may be known for its lobster, but it’s also home to two housing markets worth considering.
• Augusta and Lewiston offer growth projections ranging from 0.8% to 6.1% and 0.9% to 5.8%, respectively.
• Investors seeking diverse opportunities beyond traditional markets should look towards Maine for potential growth.

8. Edwards, CO & Jackson, WY

• Colorado’s Edwards and Wyoming’s Jackson present unique opportunities for real estate investment.
• With growth forecasts ranging from 0.9% to 6.1% for Edwards and 0.6% to 6.1% for Jackson, these markets offer both natural beauty and potential returns.
• Investors seeking more than just financial gains will find these regions appealing for their lifestyle offerings.

9. Sanford, NC & Laurinburg, NC

• North Carolina’s Sanford and Laurinburg round out our top 10 list of housing markets to watch.
• With growth projections ranging from 0.8% to 6% for Sanford and 1.1% to 5.7% for Laurinburg, these markets showcase the state’s diverse real estate opportunities.
• Investors looking for affordable options in a growing market should consider exploring North Carolina’s offerings.

10. Clewiston, FL & Toccoa, GA & Cedartown, GA

• Rounding out our list are three markets showing promising growth potential.
• Clewiston in Florida and Toccoa and Cedartown in Georgia offer growth projections ranging from 0.1% to 6%, 0.7% to 6%, and 0.8% to 5.7%, respectively.
• Investors interested in Southern charm and affordable housing options should consider these markets for their investment portfolios.

While these markets show promising growth potential, conducting thorough research and seeking professional advice is advisable before making any investment decisions. By staying ahead of trends and understanding the intricacies of each market, investors can position themselves for success in the ever-changing world of real estate.