With a new administration about to enter the White House, there are a lot of unknowns in the next year or so — uncertainties that could impact the housing market. Still, experts have identified a few regions that seem poised for a real estate boom.
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Below are some housing markets they think will most likely soar by the end of 2025.
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Colorado
In recent years, Colorado has been at the forefront of the country’s housing affordability crisis, facing a shortfall of homes second only to California, according to The Denver Post. Gene Eidelman, co-founder of Azure Printed Homes, said innovative solutions to solve this crisis are likely to free up the state’s housing market. In particular, he pointed to funding that will prioritize modular housing — or homes built off-site — in Colorado.
“In countries like Japan, which builds half its housing in factories, they figured out that they can build higher-quality housing units at a much faster pace if they bring construction off-site. In the U.S., there’s still this stigma around modular housing,” he said, noting that only 4% of units in the U.S. are built off-site.
By applying innovative thinking to solve a major housing issue, Colorado is well placed to experience growth in the housing market within the next year or two, according to Eidelman.
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Houston
According to Alex Blackwood, CEO and co-founder of the real estate investment platform Mogul, Houston is one city likely to experience tremendous growth in the coming year, which will likely have an outsize impact on the local housing market.
Already home to more than 4,700 energy companies, Houston has long been a world capital of energy. But in recent years, the city has also been leading the transition to clean energy, with the number of jobs in this space growing 6% last year, per the Houston Chronicle.
“The energy sector in Houston is performing tremendously well, with major oil conglomerates like Chevron and Exxon moving their headquarters to the area,” Blackwood said. “As Houston continues to solidify itself as the energy hub of the South, the housing market is going to do really, really well.”
Dallas
Dallas is another Texas city that Blackwood sees as on the rise.
“The population growth is tremendous, with a couple hundred people moving there each day,” he said, noting that many are following the flow of jobs as finance giants like Goldman Sachs and JPMorgan Chase open hubs in the city.
“Major financial institutions that want a presence in the South are moving to Dallas, either to replace or in addition to their hubs in New York. And that growth hasn’t been priced into the housing market yet,” Blackwood said.
Phoenix
Of late, Phoenix has been leading the country in its economic development, bolstered by nation-leading employment growth in the bioscience and industrial industries, particularly as businesses like Amazon build several new warehouses. Coupled with low unemployment (2.9%) and a large migration of high-income movers, and the city’s housing market is primed for massive growth.
“All this job growth in Phoenix points to demand,” Blackwood said.
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This article originally appeared on GOBankingRates.com: 4 Housing Markets That Could Soar in Value Before the End of 2025