In today’s high-cost real estate landscape, homebuyers searching for better deals may want to look toward the South and West. According to Realtor.com’s latest housing data for May 2025, a number of cities have emerged as some of the most buyer-friendly markets in the nation offering price reductions, longer days on market, and a growing number of homes for sale.
While many parts of the country remain challenging for buyers, especially with mortgage rates hovering near 7%, these top metros are bucking the trend by showing signs of cooling something long-awaited by house hunters.
What Makes a Market Buyer-Friendly?
A buyer-friendly market typically features several key elements: a rise in active listings, a slowdown in buyer competition, and more frequent price drops on listings. In short, these conditions give house hunters more leverage to negotiate and secure better deals.
Nationwide, 19.1% of homes for sale in May were listed at reduced prices, and total active inventory surged past one million for the first time since before the pandemic. But some cities stood out even more, giving buyers an even stronger upper hand.
Here are five of the most buyer-friendly housing markets right now:
1. Phoenix, Arizona
Phoenix tops the list with the highest percentage of price-reduced homes on the market. In May, over 31.3% of listings saw markdowns, offering real bargains for buyers. Additionally, active inventory in the metro jumped 23.1% year-over-year, adding to buyer options.
With over 1.6 million residents and a growing tech economy, Phoenix has seen tremendous growth in the past few years but now the market appears to be leveling off. This cooling trend gives local and relocating buyers more negotiating room than they’ve had in a long time.
2. Tampa, Florida
Tampa, known for its waterfront charm and booming suburbs, had nearly 30% of listings with price cuts in May. Homes spent an average of 60 days on the market, suggesting reduced urgency among buyers and more flexibility from sellers.
The median asking price in Tampa stood at $417,500, relatively affordable compared to many coastal metros. As competition eases, this could be a good window for first-time buyers or retirees seeking better value in Florida’s Gulf Coast region.
3. Denver, Colorado
Denver’s housing market is experiencing a major shift. Active listings soared 63.9% year-over-year, the largest jump of any major U.S. metro. Meanwhile, 29.4% of homes saw price reductions last month.
With inventory growing fast and buyers holding out for better deals, Denver’s once white-hot housing market is tilting in the buyer’s favor. However, rising mortgage rates and lingering affordability issues may still challenge some would-be homeowners.
4. Austin, Texas
Once one of the hottest housing markets in the U.S., Austin has cooled off significantly. In May, 29.1% of listed homes had their prices cut. The median asking price remained high at $525,000, but rising supply is starting to level the playing field for buyers.
The Texas capital has experienced a wave of tech migration in recent years, but as interest rates bite and sellers adjust expectations, more listings are staying on the market longer giving buyers the opportunity to negotiate.
5. Jacksonville, Florida
In Florida’s northeast corner, Jacksonville is becoming a hidden gem for deal-seeking buyers. Active inventory was up 31.2% compared to last year, and 28.8% of listings were discounted in May. The median asking price sat at $405,000, making it one of the more affordable metros in the top five.
As buyers seek out less crowded and more budget-friendly alternatives to Miami and Tampa, Jacksonville is gaining momentum as a more accessible market with strong growth potential.
The Bigger Picture: Inventory Builds as Sellers Adjust
Beyond these five cities, Realtor.com’s full top-10 list includes Charleston, SC; Salt Lake City, UT; Dallas, TX; Palm Bay, FL; and Portland, OR all areas seeing growing inventory and more price cuts.
Nationwide, housing inventory has now reached its highest point since 2019, climbing over 1 million active listings in May. That marks the 19th consecutive month of year-over-year growth. While home prices remain high the median national list price hit $440,000 in May buyers now have more selection and negotiating power than in recent years.
Why This Matters for Buyers
If you’re shopping for a home in 2025, these shifting dynamics could work in your favor especially in cities where sellers are increasingly willing to cut prices and listings are staying on the market longer. Though mortgage rates remain a hurdle, buyers with stable income and financing have more leverage than at any time since before the pandemic.
As always, real estate is local. Markets like Phoenix and Denver may offer bargains today, while others remain out of reach. But one thing is clear: the U.S. housing market is becoming more favorable for buyers in more places and that’s good news for anyone trying to make homeownership a reality this year.