7 Cities Where Real Estate Prices Are Skyrocketing and 3 Where They Are Rapidly Declining

March 3, 2025

The real estate market has been extremely volatile over the last few years. Prices went through the roof. If you wanted to buy, you’d have to spend a lot more money, but that’s the case with renting too. It seemed like a lose-lose situation for anyone who didn’t already own their home. That said, the market is constantly shifting. Now, some cities are seeing a change in real estate prices. In some cases, the price tags are soaring, while we’re seeing decreases in prices in other places. If you’re looking to move or trying to pinpoint a more affordable location, consider the information in this list.

1. Austin, Texas

You’ve probably heard a lot about Austin recently. The Southern city is booming and it has become one of the hottest real estate markets in the United States in recent years. This is because there are more jobs within the tech industry, with companies like Tesla and Apple expanding their operations to Austin. Unfortunately, with more people flocking to the area, housing is in high demand, which has driven real estate prices up. Many people are looking to the suburbs for more affordable housing options.

Miami, Florida

Miami’s real estate market has seen explosive growth, largely driven by an influx of wealthy buyers from out of state. The city’s tax-friendly environment and luxurious coastal properties make it an attractive destination. With international buyers returning post-pandemic, competition has driven home prices upward. The rental market has also seen significant increases, making it difficult for locals to find affordable housing. Experts predict that Miami’s housing demand will remain strong for the foreseeable future.

3. Phoenix, Arizona

Phoenix has become a hotspot for new residents due to its affordability compared to California and other expensive states. Home prices have surged due to a combination of low housing inventory and high demand. The city’s warm climate, growing job market, and relatively low cost of living make it a desirable place to settle. Remote work has encouraged migration from high-cost states, further driving up property values. Many investors are looking at Phoenix for rental opportunities due to its population growth.

4. Nashville, Tennessee

Nashville has experienced a major real estate boom, fueled by a strong job market and vibrant culture. The city’s music scene, low taxes, and economic growth have attracted new residents. Housing inventory remains tight, pushing home prices higher each year. Many corporate relocations to Nashville have further driven demand for homes. Investors have taken notice, snapping up properties to capitalize on rising values.

5. Denver, Colorado

Denver’s real estate market has been thriving due to its strong economy and scenic appeal. Young professionals and families continue to migrate to the city, increasing demand for housing. The combination of high wages and desirable outdoor amenities has contributed to rising prices. Limited land availability has also made new developments costly, further pushing home values higher. The rental market has seen similar trends, with increasing rents across the metro area.

6. Tampa, Florida

Tampa has been a hidden gem for real estate investors and homebuyers alike. The city’s low taxes, growing job opportunities, and warm climate have attracted many new residents. Home values have risen significantly over the past few years, with no signs of slowing. The demand for waterfront properties has especially surged, pushing prices higher. Tampa’s economy remains strong, with major employers expanding operations in the region.

7. Boise, Idaho

Boise has seen some of the highest home price increases in the nation over the past few years. The city’s low cost of living and high quality of life have attracted transplants from more expensive states. Limited housing supply and high demand have created a highly competitive market. Many first-time homebuyers have been priced out, leading to rising rental demand. Investors are flocking to Boise to take advantage of the rapid appreciation.

8. San Francisco, California (Rapid Decline)

San Francisco, once one of the most expensive real estate markets, has seen declining home prices in recent years. The rise of remote work has prompted many professionals to leave the city for more affordable areas. High taxes, strict regulations, and an exodus of tech workers have contributed to the downward trend. Many properties are sitting on the market longer, with sellers forced to lower prices. Rental demand has also softened as people relocate to suburbs and other states.

9. New York City, New York (Rapid Decline)

New York City’s real estate market has been hit hard by changing work trends and economic uncertainty. The pandemic accelerated a migration to suburban areas, reducing demand for city living. High living costs and rising crime rates have made some residents rethink staying in NYC. Many luxury apartments remain vacant, forcing landlords to slash prices. Office space demand has also declined, impacting commercial real estate values.

10. Chicago, Illinois (Rapid Decline)

Chicago has faced challenges in maintaining its real estate value compared to other major cities. Population decline and high property taxes have driven many residents to relocate. Crime concerns and economic struggles have impacted buyer confidence. Many properties in certain neighborhoods are losing value as demand slows. Investors are hesitant to enter the market, fearing further depreciation.

Where Should You Invest Next?

If you’re considering moving or purchasing an investment property, keep your ear to the ground. Significant shifts are happening in the real estate market right now. Anyone looking to invest might consider some of these booming markets, while someone looking for a more affordable real estate market might consider the latter three cities. In the end, understanding the trends and being able to identify some of the cheaper (and more expensive) spots can make a huge difference in your investment decisions.

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Drew Blankenship

Drew Blankenship is a former Porsche technician who writes and develops content full-time. He lives in North Carolina, where he enjoys spending time with his wife and two children. While Drew no longer gets his hands dirty modifying Porsches, he still loves motorsport and avidly watches Formula 1.