D
owney, California has been ranked as the 57th hottest real estate market among small U.S. cities in 2025 by Construction Coverage's analysis of over 600 cities and all 50 states. In December 2024, the median sale price of a home in Downey reached $907,000, a 13.7% increase from the previous year. Notably, nearly half (49.9%) of homes sold above their asking prices, with properties staying on the market for just 38.9 days on average.

    The national real estate market also experienced growth, with the median home sale price rising to $427,523 in December 2024, a 6.3% increase year-over-year. This uptick highlights the strong performance of markets like Downey, where prices appreciated at a faster pace than the national average.

    Construction Coverage's comprehensive report considered various metrics, including one-year changes in median sale prices and days on market, to create a composite score identifying the hottest real estate markets across city sizes. In the small cities category, Union City, California topped the list, followed by Lawrence, Massachusetts, and Santa Clara, California. Downey's 57th position underscores its competitiveness within this segment.

    California secured the 7th spot in state-level trends, with Connecticut, New Jersey, and Massachusetts emerging as the top three states with the hottest real estate markets. Downey's strong performance can be attributed to factors such as its strategic location within the Los Angeles metropolitan area, diverse housing stock, and ongoing community development initiatives.