Emerging Secondary Markets Worth Watching in 2025
Why Secondary Markets Matter for Real Estate Investors
For years, fix and flip investors have focused on major metros. As price rises and inventory tightens, many are turning to secondary and tertiary markets. Smaller cities can offer lower entry prices, faster absorption rates, and stronger ROI potential.
These markets are gaining traction thanks to migration trends, remote work flexibility, and business expansion into more affordable regions. For investors, that means new opportunities to buy below replacement cost and resell to an eager pool of local and relocating buyers.
What Makes a Strong Secondary Market?
Before jumping into a new city, look for these key metrics that signal sustainable growth and fix and flip opportunity:
Indicator: Job & Population Growth
What to Look For: 2%+ annual increase
Why It Matters: Creates consistent housing demand
Indicator: Affordability
What to Look For: Below National price-to-income ratio
Why It Matters: Attracts first-time and relocating buyers
Indicator: Market Velocity
What to Look For: Lower days on market, rising sales
Why It Matters: Indicates strong buyer appetite
Indicator: Public & Private Investment
What to Look For: Infrastructure, new employers
Why It Matters: Fuels housing demand and property appreciation
Indicator: Regulatory Climate
What to Look For: Investor and landlord-friendly
Why It Matters: Keeps holding and rehab costs manageable
Secondary Markets to Watch in 2025
Indianapolis, IN
Indianapolis continues to shine as Midwest powerhouse for investors. With strong population growth, affordable entry points, and consistent appreciation, Indy remains one of the most stable and scalable fix and flip markets in the region.
Median Home Price: ~$240K
Days on Market: ~20
Investor Appeal: Diverse housing stock, steady resale demand, reliable contractor base
Kansas City, MO
A consistent contender on Zillow’s “Hottest Housing Markets” Lists, Kansas city balances affordability with steady job growth. Employers like Honeywell and Meta have fueled demand, while it central location makes logistics and trades easily accessible.
Median Home Price: ~$270K
Growth Driver: Business relocation and new manufacturing investments
Investor Appeal: Healthy margins on entry-level flips and new construction
Richmond, VA
Richmond benefits from spillover demand from D.C. and the Mid-Atlantic region. Its blend of historic charm, universities, and corporate relocations creates a strong buyer pool across price points.
Median Home Price: ~$330K
Growth Driver: Expanding tech and healthcare sectors
Investor Appeal: Older housing stock ideal for value-add renovations
Buffalo, NY
Buffalo’s affordability and revitalization efforts are attracting new investors. With homes selling in under two weeks on average and infrastructure upgrades underway, it’s becoming a quiet flip hotspot in the northeast.
Median Home Price: ~$225K
Growth Driver: Downtown redevelopment, medical corridor expansion
Investor Appeal: Low acquisition costs, strong resale velocity
Providence, RI and Hartford, CT
Smaller New England metros like Providence and Hartford are drawing attention for their livability and value relative to Boston and New York suburbs. Migration from high-cost coastal cities continues to support demand.
Meridian Home Price: ~$350K-$400K
Growth Driver: Remote workers, hybrid employment patterns
Investor Appeal: Older homes with cosmetic potential and high buyer demand
Investor Tips for Entering New Markets
Start Small: Test one property before scaling to gauge contractor quality, ARV accuracy, and resale speed.
Partner Locally: Build relationships with realtors, contractors, and inspectors who know zoning, permitting, and buyer preferences.
Validate Demand: Study recent comps and DOM (Days on Market) trends - fast turnover often signals strong retail demand.
Budget for Travel or Oversight: Factor in logistics costs for inspections, draws, or punch-list work if you’re investing remotely.
Secure Flexible Financing: Call Barnett REI Finance at 224-205-7266 to get started!
How Barnett REI Finance Supports Market Expansion
At Barnett REI Finance, we specialize in funding investors who are scaling beyond their local markets. Our team structures loans designed to support your strategy from acquisition to exit.