Where homebuyers want to live in the summer of 2025 is a moving target, pardon the pun, but their idea of a bullseye is a place with warmer weather, smaller cities, and a laid-back lifestyle. Does that sound familiar, San Angelo? Our little growing city may not be exactly the local U.S. News was referring to, but we do meet some of the markers shared with the fastest growing cities in the country. 

Data from U.S. News, based on studies of net migration over five years, shows that the fastest growing cities and towns are predominantly in the Southern part of the United States, with Florida dominating the rankings, followed by Texas, South Carolina, Louisiana, and Nevada. Let's see how these key indicators could influence the San Angelo real estate market.

Fastest-growing municipalities

Ranked #1 in the Fastest-growing Places 2024-2025 is Fort Myers, Florida, with a score of 6.5/10, a rank of #37 in the Best Places to Live, and #24 in the Best Places to Retire. Fort Myers has a population of 109,595 (median age 45) and a median home price of $273,214.

At #2, Killeen, Texas (population 167,318, median age 31), has a lower cost of living than Fort Myers and a median home price of $161,449. Located in the coveted Hill Country region of Southwest Central Texas, Killeen ranks #107 in Best Places to Live, and #95 in the Best Places to Retire.

The rest of the top 12 homebuying destinations were also smaller cities, including Port St. Lucie (#3), Daytona Beach (#4), Tallahassee (#5), Ocala (#6), Baton Rouge (#7), Reno (#8), Orlando (#9), Sarasota (#10), Myrtle Beach (#11), and Naples (#12).

The fastest-growing areas, due to their size, locations, and amenities, indicate that homebuyers want to enjoy a more affordable, less frenetic lifestyle, while still having access to big-city jobs and amenities within a reasonable distance. For example, Fort Myers is close to Tampa (#13) and Miami (#24), while Killeen is close to Austin (#29) and San Antonio.

Remote work is a strong factor that determines where many homebuyers relocate to. Remote workers want flexibility in their working hours, more time with family and friends, and a quieter setting with fewer interruptions so they can be more productive. Surprising new statistics in March 2025 show that 71% of American teleworkers say that working from home helps them balance work and their personal life. A total of 28.7% of US employees work remotely or in a hybrid arrangement of telecommuting from home and days spent in the office. Nearly one-third (27%) of adults aged 35 to 44 are most likely to work remotely, and over four out of ten employees with advanced degrees also telework.

Homebuyers also favor municipalities near leisure destinations—like ocean beaches or mountain ranges—with many top towns located along the coast or, in the case of Denver (#22), offering easy access to the Rockies.

Neighborhood preferences

When homebuyers zero in on a neighborhood, they have high expectations. According to the National Association of REALTORS® (NAR) Profile of Home Buyers and Sellers, neighborhood quality was homebuyers’ first preference (59%), followed by proximity to friends and family (45%), and overall home affordability (36%). Other priorities also include safety, shopping and services, and schools, and a comfortable commute to work, schools and other daily destinations.

Homebuyers often ask their agents—or research on their own—about local crime rates and the presence of neighborhood watch programs. While no area is entirely crime-free, online tools can help reveal trends. Visiting a neighborhood at different times of day can also offer insight into traffic patterns, lighting, trash pickup, and general upkeep. Conversations with neighbors often uncover useful intel about nearby developments and give buyers a chance to observe community dynamics firsthand.

Proximity to essential services—like hospitals, pharmacies, grocery stores, gyms, and childcare—is a top priority for many buyers. The more active the household, the more crucial it becomes that these resources are not only nearby, but also match the family’s preferences.

Schools matter, too—but test scores aren’t everything. Parents often want to understand the school’s culture, access to extracurriculars, after-school care, special education support, and the strength of its parent-teacher association.

Must-have home features

For most homebuyers, choosing a home comes down to affordability—which may mean compromising on location, size, age, or amenities. Realtor.com notes that many first-time buyers opt for smaller homes in more affordable markets but still expect them to be in good condition and free from major repair needs.

New homebuyers often prioritize features like laundry rooms, patios, front porches, Energy Star-rated windows and appliances, ceiling fans, outdoor lighting, garage storage, hardwood floors in living areas, a main-level full bath, walk-in kitchen pantries, landscaping, and a kitchen eating area.

Buyers of existing homes tend to seek move-in ready properties with the right number of bedrooms and bathrooms, a garage, en suite primary bath, updated kitchen with energy-efficient appliances, a front porch, a well-designed outdoor space, and a dedicated home office.

The role of the economy and mortgage interest rates

With sky-high home prices, tariff-induced inflation fears and mortgage interest rates escalating, along with recent stock market losses, homebuyers are more cautious. Between March 17 and April 13, 2025, over 14% of home purchase contracts were canceled, reported CNN. Existing home sales (previously-owned) homes sank 5.9% over the previous month—the weakest pace of March home sales since 2009, in the midst of the Great Recession.

The Bureau of Economic Analysis released its Q1-2025 estimate of the U.S. gross domestic product, showing that the economy contracted 0.3%, yet economists say that the country is not in a recession. Mortgage rates immediately plunged to an average 6.59%—a dip of 28-basis points over the previous week.

Meanwhile, NAR announced that pending home sales, or purchase contract signings,  rose 6.1% in March. Chief Economist Lawrence Yun commented that homebuyers are acutely sensitive to even minor fluctuations in mortgage rates. Homebuyers may add an interesting see-saw effect to summer housing sales, as they jump in or pull back on economic news.