The Phoenix metro area, one of the market areas served by members of Phoenix REALTORS®, has been ranked No. 8 on the Realtor.com® 2025 top housing markets forecast.
The 2025 forecast highlighted areas that are primed and ready for growth in the year ahead. This year’s list highlights markets characterized by moderately affordable homes, abundant inventory – mainly boosted by new construction – and a sizable base of younger families, many with military and international connections.
The top 10 markets for 2025 are exclusively in the South and West. In rank order, they are:
- Colorado Springs, CO;
- Miami-Fort Lauderdale-Pompano Beach, FL.;
- Virginia Beach-Norfolk-Newport News, VA-NC.;
- El Paso, TX;
- Richmond, VA.;
- Orlando-Kissimmee-Sanford, FL.;
- McAllen-Edinburg-Mission, TX;
- Phoenix-Mesa-Chandler, AZ.;
- Atlanta-Sandy Springs-Alpharetta, GA.;
- Greensboro-High Point, NC
(See the Realtor.com 2025 Top Housing Market Forecast for the full ranking of the 100 largest U.S. markets).
Projections for Phoenix metro area
- 2025 Existing Home Sale Counts Year-over-Year: 12.2%
- 2025 Existing Home Sale Counts vs 2017-2019 Average: 19.1%
- 2025 Existing Home Median Sale Price Year-over-Year: 13.2%
- 2025 Existing Home Median Sale Price vs 2017-2019 Average: 76.1%
- Combined 2025 Existing Home Sales and Price Growth: 25.5%
“Phoenix continues to make its mark as a desirable housing market, and it’s easy to see why – we have a reputation for economic resilience, not to mention a consistently growing number of people looking to call this region home,” said Sheryl Bowden, board president of Phoenix REALTORS. “As we head into 2025, the Phoenix market shows signs of increased opportunity for buyers and sellers with lower interest rates and plenty of inventory to go around.”
“While nationwide home sales are expected to see a slight uptick this year, driven by a cooling in home price growth, the top markets we’ve identified are poised for stronger sales and price gains in 2025,” said Danielle Hale, Chief Economist at Realtor.com®. “With mortgage rates likely to ease only modestly next year, these markets – offering relatively lower-priced homes, more new and existing houses to choose from, and mortgage products designed to give buyers a leg up – could provide some would-be buyers a better chance at entering the market next year.”
More homes, more choices: Both new and existing inventory up in top markets
While inventory remains a challenge nationwide, a recovery is underway, with the number of homes for sale in November notching the highest mark since December 2019. Despite those gains, the market still trails the November 2017–2019 average by 20%, with notable regional variation: the South and West are far closer to pre-pandemic levels than the Midwest and Northeast. Among the top 10 metros, eight have seen year-over-year growth in single-family home construction, with builders increasingly focusing on more affordable and smaller homes to meet demand. But new home construction is only part of the story – despite increased construction, new home listings have declined as a share of the market in eight of the top 10 markets as more existing homeowners return to selling and add to the uptick in homes for sale.
Top markets have younger, more diverse buyers with strong military, international ties
The top 10 markets for 2025 are distinguished by their dynamic and diverse communities. Younger households are notably more common, with all but Miami having an above-average share of residents under age 35. These markets also have higher rates of families with children, with 28.8% of households including children compared to the national average of 26.5%.
Military connections are another defining characteristic – more than 1 in 7 households in the top markets are active-duty or veteran, exceeding the average of 1 in 8 across the 100 largest metros. Additionally, these communities have strong international ties, with 17.6% of residents being foreign-born, compared to an average of 13% in the largest metros. Miami leads with 42.7% foreign-born residents, and is joined by other Florida and Texas markets, which also have shares above 20%.
Unlocking homeownership: Government mortgages create opportunity in top markets
Lastly, given the prevalence of younger households and strong military connections, it’s no surprise that government-backed lending options like VA, FHA, and USDA mortgages play a key role and are more prevalent among buyers in top markets, helping more households achieve homeownership with lower down payments and fueling the expected sales and price growth in 2025.
