There’s no getting around the importance of location in real estate. It impacts a property’s value and desirability, and knowing where the top real estate markets are right now is essential to any investing plan.
The following list of the best cities for real estate investment in 2025 shows the nationwide areas that are showing strong price appreciation, robust population growth and rising rental demand. Keep reading to get insights you can act on to find the best opportunities that fit your goals.
What Makes a Market “Top” for Real Estate Investing?
While the housing market remains a sound path for building wealth, there are a few challenges that are crucial to watch if you want to know where to invest in real estate in 2025.
Start by looking at the supply and demand in a market to give you an idea of a home’s appreciation potential. Low inventory relative to the demand for housing tends to drive up home prices.
Other factors to consider include your cash flow, rental yield (the generated income expressed as a percentage of the price of your property), and strong job and population growth. You also want to look for the affordability of housing relative to incomes. Buyers and renters must be able to afford mortgages or rents, or demand could cool.
Best Real Estate Markets in the U.S. Right Now
If you’re looking for the best cities for real estate investment in 2025, here are a select few:
Atlanta, Georgia
Why It’s a Top Market:
Home to 23 Fortune 1000 companies, including 13 companies on the Fortune 500 list, Atlanta is a sprawling metropolis that offers affordability and the potential for growth. There are also plenty of vibrant hotspots in the area, from art galleries to live music performances at exciting venues, making it an attractive choice for both renters and home buyers.
- Median home price: $397,000 in June
- 1-year price appreciation: -9.0% in June
- Population growth rate: 1.28% in 2024
- Major industries/employers: Logistics, entertainment, transportation
Austin, Texas
Why It’s a Top Market:
Austin is a thriving tech hub in a robust job market, attracting new residents to high-paying jobs in a city with a relatively affordable cost of living. A shortage of housing has contributed to real estate appreciation, and continued population growth is expected to support a strong rental market.
- Median home price: $559,000 in June
- 1-year price appreciation: 0.7% in June
- Population growth rate: 1.72% in 2024
- Major industries/employers: Technology, education, healthcare
Charlotte, North Carolina
Why It’s a Top Market:
Charlotte is home to nine Fortune 500 companies and consistently ranks high among major metropolitan areas for job growth. The city has also experienced a 20% increase in population in the last decade, providing ample investment opportunities in residential and commercial real estate.
- Median home price: $435,500 in June
- 1-year price appreciation: -1.0% in June
- Population growth rate: 1.98% in 2024
- Major industries/employers: Finance, healthcare technology
Dallas, Texas
Why It’s a Top Market:
With no state tax, low corporate taxes and few regulations, Dallas attracts business relocations, the construction of regional offices and the employees who fill those jobs. The consistent influx of new residents supports housing demand. Compared to coastal cities with similar job markets, Dallas is more affordable, drawing employees looking for high-quality lifestyles at a lower cost.
- Median home price: $486,095 in June
- 1-year price appreciation: 13% in June
- Population growth rate: 1.16% in 2024
- Major industries/employers: Technology, finance, energy
Jacksonville, Florida
Why It’s a Top Market:
Jacksonville is a transportation hub with four airports, three seaports, three interstates and a railroad system serving three train companies. Three naval air stations and a submarine base give it a military presence that’s third in the nation. Coupled with lots of commercial opportunities, Jacksonville boasts more affordable housing than other coastal cities, ample jobs to attract renters and homebuyers, and a rapidly moving market, providing strong potential for solid returns on housing investments.
- Median home price: $300,238 in June
- 1-year price appreciation: -3.1% in June
- Population growth rate: 1.12% in 2024
- Major industries/employers: Logistics, trade, manufacturing
Nashville, Tennessee
Why It’s a Top Market:
Nashville has long been known for its music industry. Tourism, healthcare and technology are fueling job and population growth. An influx of new residents seeking housing gives investors the potential to see strong rental yields, and housing market trends show demand continuing to rise, with low housing inventory pushing up property values.
- Median home price: $475,000 in June
- 1-year price appreciation: -1.0% in June
- Population growth rate: 1.28% in 2024
- Major industries/employers: Healthcare, tourism, technology
Phoenix, Arizona
Why It’s a Top Market:
More than a third of Arizona’s workforce is in Phoenix. Job growth has been the catalyst for population growth, which continues to increase demand for housing. Available land in Phoenix also provides the opportunity to invest in new construction projects. While the warm climate has traditionally attracted U.S. retirees, much of the area’s growth in 2024 came from international immigration.
- Median home price: $456,500 in June
- 1-year price appreciation: 0.3% in June
- Population growth rate: 1.19% in 2024
- Major industries/employers: Manufacturing, tourism, technology
Tampa, Florida
Why It’s a Top Market:
New residents and tourists are attracted to the Tampa Bay area’s warm climate and diverse economy. Tampa’s housing market is affordable compared to other Florida cities, providing home investing opportunities that appeal to renting residents and vacationers. Investors might find the Tampa market less competitive than Austin or Nashville.
- Median home price: $436,500 in June
- 1-year price appreciation: -12.7% in June
- Population growth rate: 1.03% in 2024
- Major industries/employers: Tourism, healthcare, finance, technology
Find Your Investment Among the Top Real Estate Markets
Among America’s fastest-growing cities, real estate is providing opportunities for investors as job growth and relocations fuel population growth. Now that you have insight into the top real estate markets, consider how real estate investing might fit your investment goals.
Frequently Asked Questions
A
Springfield, Massachusetts saw the hottest housing market in June 2025, with the median home list price rising 3.2% and the median home price rising 5.2% over June of the previous year. The median list price was $294,950, and the median sold price was $305,000.
A
As of May 2025, Syracuse, New York led the nation with the price of a house jumping 18% over the previous year. This increase was driven by a decrease in inventory and an increase in housing demand. At the same time, the median home price of $234,300 still falls well below the national median home price of $403,700.
A
While pinpointing an area with the highest ROI can be challenging because of the dynamics of real estate, Cleveland, Ohio stands out as a strategic target because of its potential for strong returns while requiring a relatively moderate amount of capital. The city has the highest rent yield ratio and best affordability of all U.S. metropolitan areas.
