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Real estate investing can be a lucrative way to earn money, especially if you identify up-and-coming markets on the verge of growth. While predicting the next boom can be challenging, real estate investors have learned to track signs of potential expansion. Here are four housing markets that real estate investors are watching in 2025 and some tips for what to look for.
Cleveland is a market that's caught the attention of Holden Andrews from Helpful Home Group due to its affordability, with deals available for under $100,000. The city has a strong demand for rentals, with around 50% of houses being renter-occupied, suggesting growth potential for rental income. Rental income in Cleveland is also on an upward trajectory.
St. Petersburg and Tampa, Florida, are attracting real estate investors due to economic stability and potential for further growth. Nyx Sherwin from WeBuy502 notes that these cities are cheaper than other major cities and have a high demand for detached houses. He recommends staying up-to-date with local authorities and tracking transportation or amenity improvements to identify emerging growth zones.
Denver stands out with its outdoor lifestyle and growing technology industry, making it an attractive market for real estate investors. Sherwin is particularly interested in the townhome and condo market off hillside areas near tech office locations. He suggests attending community-oriented technology meetups and mixer events to gain insights into where tech workers are opting to live.
Raleigh-Durham, North Carolina, is a tech and education hub that appeals to young professionals and families. Antwyne DeLonde from VisionX Finance notes that the area has a favorable tax climate and affordable prices compared to the national average. He looks for markets with job growth outpacing national averages, coupled with infrastructure improvements like new highways or schools.
DeLonde also tracks announcements from major employers, as their presence can drive up demand for housing. He analyzes rental yield trends and housing supply versus demand, suggesting that areas with tight inventory and increasing rental rates are worth exploring.
In these areas, DeLonde looks for investments in single-family rentals, multifamily properties, fix-and-flip opportunities, and short-term rentals. To pick a growing market, Andrews recommends analyzing factors like good weather, favorable landlord laws, price point, and rental rates to determine cash-on-cash return.
When evaluating an investment, Andrews suggests dividing annual pretax cash flow by the initial investment to calculate cash-on-cash return. He advises sticking to one strategy and figuring out how to make it work before moving on to something else.
Newer investors are cautioned to practice patience and due diligence, avoiding hot markets without understanding their nuances. DeLonde recommends partnering with local experts and keeping an eye on interest rates, which can impact borrowing costs and rental yields. Always run the numbers, factoring in property taxes, insurance, maintenance, and potential vacancies when calculating ROI.
