Buying a home is still out of reach for many Americans due to high real estate prices, low housing inventory, and higher mortgage rates. According to a new report by the National Association of Realtors, the median age of a first-time buyer is now 38, the highest it’s ever been, partly because people have to save for a long time before buying a home. However, there’s good news for 2025.
According to Realtor.com, mortgage rates will decline, and more newly built homes will become available, helping to fill the housing shortage. The company recently launched its top housing markets for 2025 report, highlighting relatively affordable areas preferred by young families with plenty of homes for sale. And Colorado Springs, Colorado, ranked first.
The median home value in November in Colorado’s second-most populous city was $489,900, with homes staying on the market for 63 days on average, almost 30 percent longer than last year. The list focuses on markets expected to have the highest sale and price growth rates next year, making buying a home there a good investment. Colorado Springs came on top in that category, having the highest percentage of existing home sales year-over-year as well as one of the highest rates of home price increases.
In Colorado Springs, the median age is 36 years, and over 27 percent of households have children. The current unemployment rate is 4.5 percent, and Realtor.com points out that the city has one of the highest shares of remote or hybrid job postings in 2024 — almost nine percent.
Located at the foot of the Rocky Mountains, Colorado Springs offers a blend of outdoor recreation and many urban amenities. The city is also famously home to the Garden of the Gods, known for its wondrous red rock formations dating back over 300 million years.
The Miami-Fort Lauderdale-West Palm Beach area is second on the list. The median listing price there is $525,000. Realtor.com points out that while the projected home sales and price growth rate is the second highest, first-time buyers looking for a home in Miami should also consider the cost of living in the region, which is 11.5 percent higher than the national average. The city is the least affordable place to live out of all the top 10 markets, with residents spending over 40 percent of their income on housing costs.
And Virginia’s Virginia Beach metro area snatched the No. 3 spot of the top housing markets in 2025. It has a median home listing price of $389,900. Virginia’s largest city has been getting a lot of attention lately. U.S. News ranked it one of the best places to live for quality of life and low cost of living, while Niche.com ranked its school system the 19th best in the country.
Overall, the South and the West dominate Realtor.com’s list with all 10 top markets located in these regions. The majority are in Texas, Florida, and Virginia, with the most affordable market being McAllen in Texas, which, at $270,000, has the lowest median home price as of November 2024.
You can read the complete report and its findings on realtor.com.
