The real estate market runs hot and cold. And you don’t always have a roadmap to success, like you can get by adopting the franchise model.
Whether you’re thinking about constructing buildings, buying and selling homes, or owning and renting out apartment buildings or commercial property, some U.S. cities are in a slump while others are running strong in 2025.
Here are a handful of the best cities for your real estate investment in the USA in 2025.
What Makes a U.S. City a Top Investment Market for Real Estate?
People. That’s the short answer. If people want to be there, so do businesses.
Americans are highly transitory. They leave some locations — even entire regions of the country — and go elsewhere. Some move for better weather, while others are more interested in jobs, the local economy, the cost of living, and other pocketbook issues.
Whatever the reasons for domestic and international migration, where the people go, businesses follow. More businesses mean more jobs — and that means more people. So population growth is both an indicator of jobs and a motivator. Entrepreneurs see greater opportunity in communities that draw new residents, and that, in turn, heightens opportunities in real estate in numerous ways.
As new residents seek housing, commercial real estate opportunities abound in the form of residential construction, apartments, and other rental units. Business growth also triggers opportunities for new real estate development and commercial space leasing.
Here, then, are several U.S. cities where jobs and population growth, plus a booming local economy, have made them top investment markets for the real estate sector.
1.Tampa, Florida
Sun belt, anyone? The weather is one of this city’s star attractions. The state’s lack of an individual income tax also lures residents to Tampa and other Sunshine State cities.
Tampa’s location as a residential hub for international migrants from Mexico, Central America, and South America is yet another reason for the metro’s growth. Domestic migratory patterns have also made a strong impact on the local economy by coming here. Today, the metropolitan area has a population of 5.3 million.
With the population boom has come an expansion in business overall and the real estate industry in particular. Tourism, agribusiness, and technology are also among the leading industries in cities like Tampa or Orlando
A word or two of caution. In just the last couple of years, the population growth in Tampa has stalled a bit. Also, international migration might slow down with federal actions against undocumented migrants.
2. Nashville, Tennessee
Sure, Music City has tourism going for it–but that’s not all. The diverse local economy also includes healthcare, technology, and education, among other leading sectors. On top of that, the city resides in a very business-friendly state. There’s no corporate income tax, in addition to zero individual state income tax.
The result of all of that is rising home values and a strong commercial real estate market. This sector has both fueled and served a population growth that has added some 600,000 metropolitan residents between 2010 and 2025.
3. Raleigh-Durham, North Carolina
This metro represents two larger cities in close proximity and the various communities surrounding them. It’s also known as the Research Triangle for all of the region’s powerhouse universities that call the area home. These include Duke, North Carolina, North Carolina State, and UNC-Chapel Hill, among others.
As a result of that cultural impact, the region boasts a highly educated workforce and a booming economy. Franchises love to settle Raleigh, especially if they’re working in education, technology, or advanced manufacturing.
The population growth is steady, and yet the metro is still relatively affordable. Put all of that together, and you have an excellent business climate and all kinds of entry points for your real estate investment ambitions.
4. Phoenix, Arizona
The snowbirds have long loved Phoenix during the holidays, though the summers can be uncomfortably warm. But not all of those who are drawn to the city in the cold months go away when spring breaks. The metro has experienced strong growth over the last several years. Illustrating this point, the location added some 85,000 permanent residents between 2023 and 2024 alone. That’s a small city in itself.
While it’s not cheap to live in and around Phoenix, the cost of living is low compared to many of the coastal cities to the west, such as Los Angeles, San Francisco, and Seattle.
Real estate follows booming Phoenix in terms of keen opportunities in homebuilding, commercial construction, and a booming housing rental market.
5. Austin, Texas
Is Austin “over?” That would be a shame. Austin would appear on any list of booming American cities for franchising, but it has cooled off somewhat in recent years due to its own popularity spurring overgrowth. Rising housing costs have gotten out of control for some who are considering making the move. Others are looking at other Texas cities in a state known to be particularly business-friendly and a popular destination for those moving from other parts of the country.
Despite the current lull, the self-proclaimed Live Music Capitol of the World still draws the young. That means energy, vibrancy, creativity — and still some opportunities in real estate. Maybe just not as much as there used to be.
Is Franchising a Valid Real Estate Investment Alternative for You?
Austin is a notable example of how a hot market can cool off over time and quite unexpectedly. What happens if you’ve invested in an LLC to build a downtown building or a mixed-use suburban campus and the market goes dead mid-construction? Can you afford that kind of hit to your finances?
Maybe, along with researching the best cities for real estate investment in the USA, you might also check out opportunities in franchising. The business franchise model lets entrepreneurs buy or start their own businesses, but one with an established logo, products or services, and ways of doing business.
The idea is to become a franchisee of a successful corporation that’s already achieved brand loyalty and preference. The right franchise will provide ample training and support so that even first-time business owners will feel confident in achieving success.
When you think of franchising, familiar and obvious brands such as McDonald’s, Planet Fitness, or Holiday Inn spring immediately to mind — but the opportunities go far beyond those. You can find successful franchisors in just about every business category you can think of.
Another advantage over real estate investments is that there are no “hot” or “cold” cities. You see — and patronize — franchises all over America.
If you choose to further explore franchising opportunities, just conduct a search engine enquiry for the business category and city or region in which you’re interested. For instance, query “insurance company franchises in Cleveland.” You should be able to find franchising websites and easily get in contact with a franchise representative who will answer your questions with no commitment.
One Such Interested-in-You Franchisor Is Freeway Insurance
At Freeway Insurance, we’re actively looking for smart and ambitious entrepreneurs who’d like to join our thriving team. You’ll find franchise-ready markets all over the country. And be provided with top-tier training and ongoing support whenever you need advice or guidance.
There are all kinds of benefits of owning a successful insurance franchise like Freeway in 2025. One leading advantage of an opportunity like Freeway is the relatively low cost of entry. That’s because there’s no building to lease or construct, no inventory to buy and store, and no workforce costs upfront. You might initially be your sole employee, work out of your home, and have few equipment costs beyond a phone, laptop, business cards, and a website.
Interested in at least a quick chat and answers to some of your top questions (such as cost!)? Simply call your Freeway Insurance franchise representative at 1-877-822-3024 today, even if you’ve only started to think about owning your own company and becoming your own boss.
Or give us your contact information online, and we’ll check in with you.
Real estate investments might be the right move for you.
But if it’s not, we think you’ll find abundant opportunity and career satisfaction as a Freeway Insurance business owner.
