US Markets to Watch in 2025: PwC & ULI Report Reveals

The US real estate market enters the pivotal phase in 2025. In the released report by PwC and the Urban Land Institute, industry participants were asked to rate metro areas in categories like investment and development possibilities. The result? An overall "real estate prospects" score that flags the most interesting markets to watch for the coming year.

This year's results show a flat average score of 2.75 out of five, almost identical to 2024's 2.74 and down from the 2.87 registered in 2023. While these averages suggest stagnation, the story beneath them tells of significant market volatility. Participants in the industry seem to be reassessing opportunities through new lenses, and the shifts in market rankings have been quite dramatic. This dynamic environment has reshuffled the top-performing markets and revealed a new set of "movers and shakers" worth paying attention to. 

The 5 US Markets to Watch for 2025

The ULI and PwC report identifies five markets that would set the pace for real estate in 2025 and beyond. 

1. Dallas
2. Miami
3. Houston
4. Tampa-St. Petersburg
5. Nashville

1. Dallas

The Dallas/Fort Worth metroplex is locally known as DFW, the largest MSA in Texas and the nation's fourth largest. Its population grew by 6.1% between 2020 and mid-2023, placing it fourth among the fastest-growing metropolitan cities in the United States. This demographic boom has cemented DFW as one of the top destinations for real estate investors. The area has ranked within the top 10 markets in Emerging Trends for the past six years and took the number one spot for 2025. Strong five- and 10-year annualized returns of 7.9% and 8.8%, respectively, place the metro area in the top quartile of the NCREIF Property Index. 

DFW's post-pandemic recovery has been pretty impressive. Total employment in the area rose 11.2% since February 2020, quicker than for most other major metropolitan areas. Feeding into these results are a number of diversity factors in the base of DFW's economic base. To add, there are 23 Fortune 500 companies in DFW, the fourth-largest concentration nationally.

2. Miami

Miami, with its bright culture and beaches, has also become an international player in logistics networks. In 2023, its tourism numbers broke through the barrier of 27 million visitors yet again, entrenching it as one of the most popular destinations in the world for tourists. Apart from it, PortMiami has gained the reputation of being the second-busiest cruise port in the world, while it also plays the role of a key conduit for cargo in and out of the Caribbean and Latin America. This strategic position bolsters Miami's industrial sector, with Green Street forecasting logistics rent growth to surpass 3.5% annually through 2028, the highest among the top U.S. markets. 

However, Miami’s housing market has experienced significant challenges. Still, household price rates surged up 80% since the Covid-19 pandemic. Furthermore, domestic net migration has retreated behind negative territory, while immigration continues to drive population growth forward, which Moody's calculates at a rate of anywhere between 0.5%  and 1.0% through the next five years. The affordability factor has indeed not made Miami the cheapest place, but with its strategic location and appeal, the market still remains alluring for investors. 

3. Houston

Houston, aka "The Energy Capital of the World," has become a more diverse and resilient metro economy. Though still rooted in oil and gas, it has made significant headway in expanding into green energy, health care, technology, and aerospace. That kind of diversification helped the city move up the charts into the top markets of 2025 for the first time in a decade. The Houston area is home to 26 Fortune 500 companies, ranking third among major U.S. metro areas.

Not only is the Texas Medical Center among the world's largest medical complexes, but it is also a cornerstone in the economic base of Houston, employing more than 120,000 employees. The Port of Houston is another major contributor to Texas's GDP. Strong diversification of industries, combined with this infrastructure strength, has kept Houston at the fore currently.

4. Tampa-St. Petersburg

Tampa-St. Petersburg rose 14 spots to crack the top real estate markets in the 2025 ranking. The metro combines a warm climate and no state income tax with a very solid economy. Tampa's real estate market has been a good performer, too. The 10-year annualized total return was 8.6% in the NCREIF Property Index.

Within the last decade, 1.5% annual growth in the metropolitan area was recorded - which is more than double the growth in the country. National trends also surpassed Tampa in terms of job growth. Being among those hubs where finance and insurance represent very high demand, the proportion of office-using jobs has 39% points more than is nationally averaged.

5. Nashville

Known as "Music City," Nashville has grown well beyond its cultural roots into a diversified economic hub. Over the past decade, it rose from 44th to 29th largest market in NCREIF's Property Index, with annualized total returns of 9.4%. Having fallen to fifth place in the rankings for 2025, Nashville remains a top-tier market, ranking consistently among the top 10 for the past decade.

Growth in Nashville has been driven by robust fundamentals. Since 2014, it has had job growth of nearly three times the national average while its real gross metropolitan output has grown at a 4.5% compound annual growth rate. Tourism remains important to the city's economy, with 15 million visitors per year. While tourism dependence makes Nashville subject to a number of economic cycles, overall diversity in its economic base make the metro one of the bright spots today in real estate

Movers and Shakers

Several U.S. cities have stood out for their remarkable economic shifts and real estate market dynamics, earning them a spot in the "Movers and Shakers" category.

1. Manhattan
2. Detroit
3. Columbus
4. Charleston
5. New Orleans

1. Manhattan

Manhattan surged 20 places in the rankings to claim the 11th spot, reaffirming its resilience and enduring allure. Economic activity rebounded strongly post-COVID, positioning Manhattan and surrounding areas - Brooklyn (+14 to 14th), Jersey City (+27 to 19th), and Long Island (+18 to 20th) - as top investment destinations. Tourism and immigration have fueled short-term population and employment gains, though long-term demographic headwinds and a high cost of living (153% of the U.S. average) pose challenges to sustained growth. Despite these hurdles, investor confidence remains high, with the market poised for robust near-term performance as momentum from delayed post-pandemic recovery drives renewed capital interest.

2. Detroit

Detroit jumped 22 spots to become the top-ranked market in the Midwest. In 2023, it recorded its first population growth in 66 years. The renovation of the Michigan Central Station and the arrival of luxury retailers signal revival. However, challenges persist, with the metro area's population declining by 0.3% annually since 2020 and compounded annual employment growth trailing the national rate by 60 basis points. Despite these hurdles, Detroit’s high-tech employment (14th in the U.S.) and its automotive R&D concentration underscore its potential as a hub for innovation amid the electric vehicle transition.

3. Columbus

Columbus has solidified its status as a rising star, placing it within the top movers of the ranking. It saw a recorded 51 million visitors in 2023. Its metro area has recorded growth at a compound annual population growth rate of 0.9% since 2014, while it is the fastest-growing U.S. city by population in 2023. This goes hand in hand with its employment growth of 1.5% and annualized real GDP growth of 2.7% since 2014. Coming in at number 38 in the ranking of NCREIF markets, the long-term returns may be modest, but its dynamic growth trajectory makes it a key market to watch. 

4. Charleston

Between this year and 2010, Charleston also dramatically altered its economic prospects, taking the 71st Metro Area ranking away from earlier economic rankings of 83. It has more than the regular population growth at almost 200,000 people over the decade and increased tourism impact totaling $12.8 billion for 2022. With a 2.9% annual increase since 2014, in addition to a 5.0% jump in employment between August 2023 and July 2024, Charleston ranks as the number two fastest-growing job market in the country. Since the pandemic, Charleston, rich in cultural heritage combined with economic vibrancy, has staged one of the strongest recoveries in the country. 

5. New Orleans

New Orleans jumped 25 places to 42nd in the report. But gains aside, the city still struggles with several chronic troubles, including employment that remains 3.4% below the pre-pandemic peak and relatively weak net migration. Tourism is still below its prior peak. This sector drove nearly 40% of the city's operating budget in 2022, during which visitors spent $9 billion, down from 2019. Adding an annualized -1.6% decline in GDP since 2014, this points to a cyclically exposed city. Nevertheless, the specific cultural glamour of New Orleans and current efforts to attract investment turn it into a market that has yet to realize its full potential. 

Key Takeaways

The 2025 Emerging Trends report brings into focus a changing landscape of real estate across the United States, from markets just coming into their own as economic powerhouses to those navigating their complicated challenges. These cities exemplify the trends in the real estate industry, but one bottom line is that adaptability and informed decision-making remain key in an evolving market. Investors and stakeholders should continue to leverage localized insights and macroeconomic indicators in order to effectively anticipate opportunities and mitigate risks.

To explore the 2025 Emerging Trends and US Markets report and gain deeper insights into the future of real estate, read the full report here.