Why Investors Are Shifting Focus Toward Secondary Markets in 2025

Gone are the days when primary markets like New York City, Los Angeles, and San Francisco monopolized investor attention. In 2025, all eyes are on secondary markets — smaller towns and suburban regions where property values are surging and returns on investment are increasingly attractive. This shift is not just a trend — it’s a strategic move fueled by affordability, changing lifestyles, and evolving market dynamics. 

Why Secondary Markets Are Booming in 2025 

Let’s start with the numbers: 

• Kerhonkson, NY is currently leading the charge with a staggering 292.8% month-over-month (MoM) increase in median list prices. This quiet town has transformed into a real estate hotspot, driven by demand from city dwellers seeking space, nature, and more affordable property prices. 

• Maysville, OK has seen a 49.2% MoM jump, signaling that smaller Midwestern towns are also gaining momentum. 

These aren’t isolated cases. Cities like Bellefontaine Neighbors, MO (30.05%), Edgar, WI (17.39%), and Byron, CA (13.33%) are all experiencing rapid growth that outpaces even the most competitive primary markets. 

What’s Fueling This Shift? 

1. Affordability Meets Opportunity 
   Primary markets have become too expensive and saturated, leaving little room for profitable flips or high-yield rentals. Secondary markets offer lower upfront costs with rapid appreciation potential. 

2. The Remote Work Revolution 
   More people are no longer tied to big cities for their jobs. Towns with good internet infrastructure, charming communities, and easy access to nature are seeing an influx of remote workers and young families. 

3. Improved Infrastructure & Amenities 
   Towns like Moonachie, NJ (10.36%) and Cos Cob, CT (11.11%) are benefiting from local government investments in roads, schools, healthcare, and entertainment, making them highly desirable for both buyers and renters. 

4. Rising Tourism in Lesser-Known Destinations 
   Areas once overlooked are now becoming tourist magnets. Travelers are opting for quieter, off-the-beaten-path locations over crowded tourist hubs, driving short-term rental (STR) demand. 

Why Investors Are Pivoting Early 

The early movers are already winning. Investors who recognized these signals in 2024 and shifted focus to towns like Shadyside, OH (11.5% MoM growth) and Long Hill, CT (11.6%) are now sitting on significant equity gains. 

With tools like Pulsereal, investors can: 

• Track price growth patterns in real-time. 

• Analyze short-term and long-term rental demand. 

• Forecast market stability and saturation risks. 

Flipper AI adds another layer of insight, identifying undervalued properties with high flip potential based on pricing trends, renovation costs, and neighborhood appreciation forecasts. 

How to Capitalize on the Secondary Market Boom 

1. Watch the Data, Not the Hype 
Rapid price growth is exciting, but sustainable returns come from markets with both demand and long-term stability. Pulsereal’s predictive data helps you separate true growth markets from temporary bubbles. 

2. Move Before the Herd 
The fastest-growing markets of 2025 — Kerhonkson, Maysville, Bellefontaine Neighbors — are still under the radar for most large institutional investors. Early action means higher ROI and less competition. 

3. Diversify Between Flips and STRs 

• Byron, CA and Edgar, WI are ideal for short-term rentals, with strong tourism appeal and consistent visitor flow. 

• Cos Cob, CT and Moonachie, NJ are better suited for strategic flips, given their proximity to larger metro areas and rising homebuyer demand. 

4. Focus on Infrastructure & Development News 
Stay updated on town-level developments: New transport links, school expansions, and entertainment centers are major indicators of future growth. 

The Real Opportunity in 2025 

Secondary markets are no longer just the backup plan — they’re becoming primary opportunities for savvy investors. The benefits: 

• Lower entry costs 

• Faster appreciation rates 

• Less risk of hyper-competitive bidding wars 

• Strong rental yields, both short-term and long-term 

Pro Tip: Start Small, Scale Fast 

The beauty of secondary markets? Investors can start with smaller investments (often under $200K) and scale quickly by leveraging equity growth into additional properties. 

Cities like Moodys, OK (8.83% growth) and Shadyside, OH could be perfect markets to begin building an STR or rental portfolio without massive capital outlay. 

Bottom Line 

The investors who will win big in 2025 are those who pivot away from over-saturated metros and tap into the secondary market wave before it becomes mainstream. With data-driven insights from Pulsereal and tools like Flipper AI, investors can make smart, confident decisions in markets others haven’t yet discovered.