Downey ranked 57th hottest real estate market of 2025
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DOWNEY — Downey, California, has been recognized as the 57th hottest real estate market among small U.S. cities in 2025, according to a recent analysis by Construction Coverage, a leading online publisher of construction industry research reports.
In December 2024, the median sale price of a home in Downey reached $907,000, marking a 13.7% increase from the previous year. Notably, 49.9% of homes sold above the asking price, and properties remained on the market for a median of 38.9 days. Only 15.4% of new listings experienced a price drop during this period.
Nationally, the real estate market also saw growth, with the median home sale price rising to $427,523 in December 2024, reflecting a 6.3% increase year-over-year. This national uptick underscores the heightened activity in markets like Downey, where price appreciation outpaced the national average.
Construction Coverage's comprehensive report analyzed real estate market conditions in over 600 U.S. cities and all 50 states. The study considered factors such as one-year changes in median sale prices, the share of homes sold above asking price, median days on the market, average sale-to-list percentages, and the share of listings with price drops. These metrics were used to create a composite score, identifying the hottest real estate markets across various city sizes.
In the small cities category, Union City, Calif., topped the list, followed by Lawrence, Mass., and Santa Clara, Calif. Downey's position at 57th highlights its competitiveness and appeal within this segment.
The report also shed light on state-level trends, with Connecticut, New Jersey, and Massachusetts emerging as the top three states with the hottest real estate markets. California secured the 7th position, reflecting strong market dynamics in various cities, including Downey.
Downey's robust real estate performance can be attributed to several factors, including its strategic location within the Los Angeles metropolitan area, a diverse housing stock, and ongoing community development initiatives.