Top Housing Markets for 2025: Colorado Springs and El Paso to Thrive

As we approach 2025, the U.S. housing market is showing signs of significant growth, particularly in the Sun Belt region. Realtor.com’s latest forecast reveals exciting opportunities for homebuyers, sellers, and investors alike. In this comprehensive analysis, we’ll dive deep into the top housing markets for 2025, with a special focus on Colorado Springs and El Paso, two standout cities in the current real estate landscape.  As a leading homebuilder in Colorado Springs and El Paso, View Homes is proud to contribute to these thriving markets by offering high-quality new construction homes that meet the evolving needs of modern families.

The Top 10 Housing Markets for 2025

1. Colorado Springs, Colorado
2. Miami-Fort Lauderdale-Pompano Beach, Florida
3. Virginia Beach-Norfolk-Newport News, Virginia-North Carolina
4. El Paso, Texas
5. Richmond, Virginia
6. Orlando-Kissimmee-Sanford, Florida
7. McAllen-Edinburg-Mission, Texas
8. Phoenix, Arizona
9. Atlanta, Georgia
10. Greensboro, North Carolina

Colorado Springs: A Booming Market

Colorado Springs takes the crown as the top housing market for 2025, with impressive projections:

• Combined sales and price growth: 39.8%
• Expected sales growth: 27.1% year-over-year
• Price appreciation: 12.7% year-over-year

Key Factors Driving Growth

1. Strong Military Presence: Home to multiple military installations, including the U.S. Air Force Academy and Fort Carson, Colorado Springs benefits from a stable employment base and consistent housing demand.
2. High Adoption of Government-Backed Mortgages: The prevalence of VA loans makes homeownership more accessible to military personnel and veterans.
3. Abundant New Construction: The city is experiencing a boom in new housing developments, helping to meet growing demand. View Homes specializes in building modern, affordable homes in Colorado Springs’ most sought-after neighborhoods like Trails at Aspen Ridge and Aspen Meadows, making it easier than ever to find your dream home.
4. Relative Affordability: Despite recent price increases, Colorado Springs remains more affordable than nearby Denver and other major metropolitan areas.
5. Quality of Life: The city offers a perfect blend of urban amenities and outdoor recreational opportunities, attracting young professionals and families.

Market Analysis

Colorado Springs’ real estate market has shown resilience and growth potential:

• Median Home Price: As of October 2024, the median home price stands at $450,000, up 8% from the previous year.
• Days on Market: Homes are selling faster, with an average of 30 days on market, down from 45 days in 2023.
• Inventory Levels: While still tight, inventory has increased by 15% year-over-year, providing more options for buyers.

Neighborhood Spotlight

• Downtown: Urban living with a mix of historic homes and new condos
• Briargate: Family-friendly suburb with excellent schools
• Old Colorado City: Charming historic district with a vibrant arts scene

El Paso: The Rising Star of Texas

Securing the fourth spot on the list, El Paso showcases its emerging potential in the housing market:

• Current median home price: $255,000 (as of October 2024)
• Projected annual price growth: 3-4% through 2025
• Rental market: Average rents around $1,150 per month, with low vacancy rates

El Paso’s Strengths

1. Strategic Location: Situated on the US-Mexico border, El Paso benefits from international trade and cultural exchange.
2. Diverse Economy: Strong sectors in defense, healthcare, and logistics provide a stable job market.
3. Affordable Housing: El Paso offers some of the most affordable housing options among major Texas cities.
4. High Demand: Both rental and owner-occupied properties are in high demand, driven by population growth and economic development.
5. Climate: The city’s sunny, dry climate attracts retirees and sun-seekers from across the country.

Market Analysis

El Paso’s real estate market shows promising signs for 2025:

• Sales Volume: Projected to increase by 15% year-over-year
• New Construction: Building permits for single-family homes up 20% from 2023. View Homes is at the forefront of El Paso’s housing growth, offering thoughtfully designed homes in The View at Desert Springs community that meet the needs of families and professionals alike.
• Investor Interest: Growing interest from out-of-state investors, particularly in multi-family properties

Neighborhood Spotlight

• Downtown: Undergoing revitalization with new apartments and cultural attractions
• West Side: Popular among families, featuring newer developments and mountain views
• East Side: Rapid growth area with a mix of affordable and upscale housing options

Market Trends and Insights

Regional Focus

The top markets for 2025 are exclusively in the South and West, with multiple cities from Texas, Florida, and Virginia. This trend reflects ongoing population shifts towards the Sun Belt, driven by factors such as these:

• Lower cost of living
• Job opportunities in growing industries
• Favorable climate
• Less dense urban environments

Sales Growth

Realtor.com forecasts a 1.5% increase in home sales for 2025, reaching an annual total of 4.07 million sales. This modest growth suggests a stabilizing market after years of volatility.

Price Appreciation

Home prices are expected to rise by 3.7% nationwide, with some markets seeing double-digit growth. This trend indicates continued demand and limited supply in desirable areas.

Inventory

A moderate increase in active listings is anticipated, improving slightly above 10%. This could provide some relief for buyers who have faced tight inventory conditions in recent years.

Demographics

Younger families (below 35 years) and military households are well-represented in top markets. This demographic shift is reshaping housing preferences and driving demand for family-friendly communities and amenities.

Buyer Tips for 2025

1. Get Pre-Approved: In competitive markets like Colorado Springs, having a pre-approval letter can give you an edge over other buyers.
2. Consider New Construction: With increased building activity in markets like El Paso, new homes may offer more options and potential customization.
3. Look Beyond City Centers: Suburban and exurban areas of top markets often offer better value and more space.
4. Be Prepared to Act Quickly: Even with improving inventory, desirable properties in hot markets may sell fast.
5. Explore Alternative Financing: Look into FHA loans, VA loans, and other programs that can make homeownership more accessible.
6. Think Long-Term: Consider future growth potential and infrastructure improvements when choosing a location.
7. Work with a Local Agent: Market conditions can vary significantly by neighborhood, so local expertise is invaluable.

Investment Opportunities

For those looking to invest in real estate, the top markets of 2025 offer several strategies:

1. Buy-and-Hold: Long-term appreciation potential in growing markets like Colorado Springs and El Paso.
2. Rental Properties: Strong rental markets in cities with large military or student populations.
3. Fix-and-Flip: Opportunities in older neighborhoods undergoing revitalization.
4. New Construction: Potential for custom builds or spec homes in rapidly growing areas.
5. Commercial Real Estate: Look for opportunities in retail and office spaces as local economies expand.

Conclusion

The 2025 housing market presents exciting opportunities, especially in Sun Belt cities like Colorado Springs and El Paso. These markets offer a combination of affordability, economic growth, and strong demand that positions them for significant gains in the coming years. Whether you’re a homebuyer, seller, or investor, keeping an eye on these top markets could lead to valuable opportunities in the real estate sector. As one of the nation’s top 50 new home builders since 1990, View Homes continues to craft innovative designs with timeless beauty throughout Colorado Springs, El Paso, and beyond.

Looking to buy or invest? Contact View Homes today to explore our wide range of new construction homes tailored to fit your lifestyle. As always, it’s essential to conduct thorough research and consult with local real estate professionals before making any major decisions. The real estate market can be influenced by various factors, including economic conditions, policy changes, and unforeseen events. Stay informed, be prepared, and you’ll be well-positioned to take advantage of the opportunities that the 2025 housing market has to offer.

Sources

1. Realtor.com. (2024). 2025 Housing Market Predictions: What to Expect. Retrieved from Realtor.com
2. U.S. Census Bureau. (2024). Building Permits Survey. Retrieved from U.S. Census Bureau
3. Zillow. (2023). 2025 Home Price Forecast: Trends and Insights. Retrieved from Zillow
4. Colorado Springs Economic Development Corporation. (2024). Market Overview: Colorado Springs Real Estate Trends. Retrieved from CSEDC
5. El Paso Chamber of Commerce. (2024). Economic Development and Housing Market Report. Retrieved from El Paso Chamber
6. National Association of Realtors. (2024). 2025 Home Buyer and Seller Generational Trends Report. Retrieved from NAR
7. View Homes. (2024). New Construction Homes in Colorado Springs and El Paso. Retrieved from View Homes