AUSTIN, Texas — With nearly 1 million residents, Texas’ capital city continues to grow as people move to the metro from all across the U.S. According to Realtor.com, Austin is one of the top 20 housing markets expected to grow in 2025.
The website said home sales in the top markets will likely increase up to roughly 27% year-over-year, with Austin placed at 16th on the list.
In first place was Colorado Springs, Colorado, with an estimated sale price growth of 27.1%. Miami, Florida came in second, followed by Virginia Beach, Virginia, Richmond, Virginia, and McAllen, Texas.
Meanwhile, Austin found itself toward the bottom half of the list, followed by Augusta, Georgia, Durham, North Carolina, Denver, Colorado, and Jacksonville, Florida.
Realtor said it expects Austin to see a 14.5% increase in year-over-year sales this year, attributing factors such as the Austin City Limits (ACL) festival, South by Southwest (SXSW) and its growing tech companies. In November 2024, its average home cost was $490,000.
The only other Texas city featured was El Paso, ranked sixth overall with a projected sale rate of 19.3%.
How are the top cities chosen?
On a national level, home sales are only expected to rise by 1.5% in 2025, with the largest jump predicted in June. So what sets these 20 cities apart?
Realtor said each of the top 10 spots has been able to expand upon their sales growth, partially thanks to an uptick in new single-family homes. In Austin, the city’s HOME Initiative has provided a possibility for even more growth, allowing multiple homes to be constructed on a single lot.
Not only that, but the top 10 cities also see more people 35 years old or younger in their homes, many of which are in the military and/or were born outside the country.
All cities on the list have also managed to reduce the strain of costly mortgage rates, with many residents using loans from the government. Others own their homes altogether, eliminating mortgage payments.