Tucson Housing Market 2025: Why Prices Are Expected to Surge!

A recent study conducted by Realtor.com shows that housing prices are expected to rise about 3.7% nationwide in the upcoming year. And that's no surprise because that's been pretty close to the average yearly increase since 2012. But the same study predicts that over a dozen U.S. cities will see housing prices skyrocket in the next 12 months. And my hometown of Tucson, Arizona, is at the top of the list. Hey everyone, it's Kimberly, your go-to real estate agent in Tucson, Arizona. And today we are talking about Realtor.com's latest 2025 National Housing Forecast and what predictions are for Tucson specifically. When you're ready to purchase or sell real estate in the Tucson area, you know where to find me. All my contact information is in the description below each of the almost 1,000 videos on this YouTube channel. What are your predictions for the upcoming year? Throw your thoughts down in the comments section below. I'd love to hear what others think will happen with a new year and a new president. According to Realtor.com's latest forecast list, 16 cities will see a surge in housing prices in 2025. And by that, I mean that housing prices are expected to rise in those places by over 10%. In other words, a $500,000 home today is expected to be worth $550,000 in one year. Or a $1 million home today could go up to $1.1 million or more by the end of 2025. It probably won't surprise you that some of the cities to make the cut are major cities in larger, more highly populated states. But what may surprise you is that my hometown of Tucson, Arizona ranks number three. Cities in Florida, Colorado, Nevada, and Arizona make up the majority of the list. And believe it or not, the city that tops the list as predicted to have the highest price increase in the upcoming year is none other than our neighbor to the north, Phoenix, Arizona. Yes, that's right. Phoenix is expected to see the largest increase in housing costs in 2025 at a whopping 13.2%. You can get the link for the full article in the description below this video. But I'll tell you right now that Colorado Springs, Colorado comes in second on the list with a 12.7% price increase predicted. And good old Tucson, Arizona landed third with an expected price growth of 12.4%. Here's the nice thing about Tucson that those other bigger cities don't have. Our housing prices are still less than the national average and our cost of living overall is too. But why are real estate prices expect to surge so significantly in Tucson of all places in the upcoming year? Well, you probably already know that this YouTube channel is full of resources with things to do and see and know about this city of Tucson, which is my hometown. Check out those videos to get more information about hiking, cycling, golfing, camping, museums, national parks, resorts, spas, restaurants, plant life, stargazing, fascinating wild animals, businesses, and so much more here. We have an incredible food scene, cultural richness, and endless outdoor activities here. There's a reason that Redfin named Tucson the best place to live in Arizona in 2025 and Outside Magazine ranked Tucson as one of its 23 best places to travel in 2024. But as I mentioned before, we still aren't nearly as expensive as other bigger cities, especially in the western part of the country. And for those who are looking for a balance of housing and quality of life, Tucson has a lot to offer. We don't have a ton of high-paying jobs here, but now that many folks can work remotely, Tucson wages aren't as much of a concern. And Tucson has always been popular for retirees, and we continue to build beautiful 55-plus active adult lifestyle communities in our suburbs like Green Valley, Vail, Dove Mountain, and Oro Valley. For all these reasons, Tucson's population continues to grow. Snowbirds continue to purchase properties here to escape to in the winter when their houses in their hometowns are snowed in. And that means demand for housing remains. And that means prices will continue to go up. But what about the U.S. as a whole? Well, in November 2024, Goldman Sachs came out with an article entitled The U.S. Economy is poised to beat expectations in 2025. The opinion piece stated, Of course, those predictions are for the nation and not necessarily for Tucson. But considering how many people from other places retire in Tucson and invest in Tucson real estate and purchase winter homes in Tucson and purchase second and third and fourth homes in Tucson, I'm willing to bet that many people from other places who do well financially in 2025 may end up finding their way to southern Arizona by the end of the year. And when they do, that will definitely affect Tucson housing prices. What are your thoughts on the upcoming housing market in Tucson and across the rest of the country? I'd love to know what you're seeing in your neck of the woods. Throw down your opinions in the comments section below. And please consider liking and subscribing to this channel to follow along with me and more Tucson news. I am a born and raised Tucsonan with almost a thousand videos on this channel about Tucson and real estate. So explore those after this one to learn more about this place. When you or a friend are purchasing or selling Tucson real estate, I would love to assist. All my contact information is in the description below each video on this YouTube channel. I really appreciate you hanging out with me today, and I will see you in the next Tucson video or when we go to buy or sell a home together.