In 2025, the housing landscape around U.S. Military bases is experiencing a major shake-up, significantly impacting Veterans, active-duty Military members, and the communities where they live. A notable spike in Permanent Change of Station (PCS) moves—up by 12% this spring—has created a surge in both buying and selling activity in base-adjacent neighborhoods.
This shift is not only driving home prices upward but also shaping rental markets, impacting local construction trends, and pushing Veterans to explore various pathways to homeownership, including the powerful advantages of VA loans.
For many transitioning Military personnel, the path to civilian life can feel daunting, especially when it comes to understanding real estate markets, financial considerations, and the logistics of moving an entire household.
By focusing on the unique challenges and opportunities for Veteran home buying, this article serves as a comprehensive guide to help Veterans and Military families navigate the fast-changing housing markets near Military installations. Whether you’re moving due to a PCS or exploring the next step in your post-service journey, you’ll find insights, strategies, and data-driven tips to make informed decisions on your homeownership path.
In this Article
What Are PCS Moves and Why Are They Surging?
PCS moves refer to the relocation of active-duty service members and their families from one duty station to another. Traditionally, these moves occur every two to four years, although timing can vary based on Military needs, branch, and role. In spring 2025, PCS activity has risen by 12% compared to last year, creating a ripple effect across local real estate markets near Military bases. Below are some of the key reasons why:
- Post-Pandemic Normalization: During the height of the COVID-19 pandemic, many PCS orders were delayed or canceled altogether. Now that movement restrictions have eased, a backlog of reassignments is finally playing out, leading to a noticeable surge in relocations.
- Strategic Military Realignments: The Department of Defense (DOD) is reconfiguring the distribution of personnel across strategic bases, particularly in states like Texas, Florida, and North Carolina. These areas have been identified for their readiness and alignment with evolving global demands, resulting in a higher influx of Military families.
- Economic Incentives: Many Military families are exploring off-base housing because 2025’s Basic Allowance for Housing (BAH) rates have increased by about 5.4%. Although housing costs have also gone up, the higher BAH can still make off-base living (including homeownership) more feasible for some.
This swell in PCS moves holds particular significance for Veterans who are either retiring or transitioning to civilian roles but remain close to Military communities. For Veterans, these trends influence both immediate relocation decisions and long-term housing strategies, including the use of VA loans or other beneficial programs.
How Military Relocations Impact Base-Adjacent Housing Markets
Communities situated within roughly 30 miles of Military installations—often called “base-adjacent markets”—are at the epicenter of these relocation trends. Veterans interested in buying or selling in these areas should consider how the surge in PCS orders is reshaping local real estate and potentially affecting their own homeownership goals:
Rising Home Prices
As Military families and Veterans look for homes near military bases, heightened demand is driving up prices. According to the National Association of Realtors (NAR), existing home sales nationwide are set to rise by 13.5% by the close of 2025, pushing median home prices up 3.8% year-over-year to around $398,400. Areas near major installations, like Fort Carson in Colorado Springs or Naval Station Mayport in Jacksonville, Florida, are experiencing higher-than-average price increases due to limited inventory.
Increased Rental Demand
Many relocating service members and Veterans may initially opt to rent if they are uncertain about how long they will remain in the area. This behavior is intensifying the rental market, with rents climbing faster than BAH in some locations. For instance, in Salt Lake City, near Hill Air Force Base, rents are outpacing BAH by up to 25%. This discrepancy can be especially tough on junior enlisted families and Veterans on a fixed income, as they compete with civilians for limited rental availability.
Construction Boom
Demand for housing around bases is contributing to a construction surge. Cities like Austin and Houston, Texas, are reportedly issuing 40% more single-family housing permits than their long-term averages to keep pace with population growth, part of which is spurred by Military relocations. This wave of new development offers opportunities for Veterans who may be looking for newly built homes with modern amenities, but it can also place strain on local infrastructures—think schools, healthcare facilities, and transportation systems.
Civilian Competition
Veterans and active-duty families aren’t the only ones seeking housing in these booming markets. States such as Texas and Florida have long been magnets for job relocations, and an estimated 12% of inbound workers come from pricier areas like California. As a result, the competition for affordable homes near Military bases can be fierce, pushing some Military families to look farther from installations and lengthen their commutes.
| Market Impact | Details | Example Locations |
|---|---|---|
| Home Price Growth | Up 3.8% nationally, higher near bases | Jacksonville, FL; Colorado Springs, CO |
| Rental Demand | Rents outpacing BAH in some areas | Salt Lake City, UT; San Antonio, TX |
| Construction | 40%+ increase in single-family permits | Austin, TX; Houston, TX |
| Civilian Competition | 12% of job relocators from high-cost states | Dallas, TX; Nashville, TN |
For Veterans who want to remain close to the sense of community found near Military installations, staying aware of these broader market forces can help shape more informed decisions about when to buy, sell, or rent.
Challenges for Military Families in 2025
While the uptick in PCS moves suggests robust real estate activity, it also underscores a variety of challenges. Active-duty families and Veterans face particular hurdles when planning their housing strategies.
Affordability Gaps
In many base-adjacent markets, housing costs continue to climb faster than BAH. A 2024 Government Accountability Office (GAO) study indicates that Military families spend an average of $336 more monthly on housing than their BAH covers in high-cost areas such as Colorado Springs. Veterans also face affordability issues if they rely on fixed incomes or disability benefits. This gap can strain budgets and add to financial stress.
Limited On-Base Housing
Military installations often have limited on-base housing. Fort Carson, for instance, was operating at full capacity as early as 2022, forcing newly arrived families to search for hotels and short-term rentals. While the DOD aims to expand on-base accommodations, the needs of a growing Military force, along with returning Veterans who might seek employment or stay near bases, continue to outpace construction.
Time Constraints
PCS moves happen on tight deadlines. The Military typically covers up to 14 days of temporary lodging expenses. However, nearly half of Military families report needing more than 20 days to successfully find a home. Veterans transitioning to civilian life may also face compressed timelines if their new employment or educational pursuits start soon after discharge, leaving limited bandwidth to coordinate a house hunt.
Emotional and Financial Stress
Frequent relocations can be emotionally draining, especially for families with children who must change schools repeatedly. For Veterans who have already experienced multiple moves during active service, the prospect of yet another move—especially under urgent circumstances—can exacerbate stress. In some cases, the financial and emotional toll of PCS relocations leads service members to consider early separation or for Veterans to move away from Military communities altogether.
Opportunities for Military Home Buyers and Sellers
Despite these hurdles, 2025 brings multiple opportunities for Military families and Veterans seeking to buy, sell, or rent out properties. Understanding these possibilities can help you leverage your status as a Veteran or service member to secure favorable terms and long-term housing solutions.
Buying with VA Loans
For many Veterans, the VA loan stands out as one of the biggest advantages of Military service. VA mortgages offer zero down payment, no private mortgage insurance (PMI), and competitive interest rates. Although average mortgage rates hover around 6.7% in 2025, buyers can often negotiate or “buy down” their rate when using a VA loan. If you’re considering buying near bases like Ogden-Clearfield, Utah, or Jacksonville, Florida—both highlighted by Forbes as “best-buy” cities this year—tap into your VA loan benefits for potentially lower monthly payments and fewer upfront costs.
Selling in a Seller’s Market
Military homeowners who purchased in previous years have likely seen a surge in equity, with some estimates suggesting an average equity gain of over $100,000 in certain markets. If you need or want to sell during a PCS or retirement transition, listing your home in late spring to early summer can align perfectly with peak Military relocation season. This timing means more Military families and Veterans searching for homes, which often leads to multiple offers and higher selling prices. Just be prepared for quick turnarounds; Military buyers frequently must finalize housing swiftly.
Renting Out Properties
Another strategy is to become a landlord. Some Veterans and active-duty service members choose to keep a property near a base when they receive a PCS or transition to another career. With rental demand high in many base-adjacent markets, this can be a path toward building long-term wealth. However, be sure to calculate the costs of property management, maintenance, and potential vacancies. Veterans can sometimes leverage local networking connections, including Military Relocation Professionals (MRPs) or Veteran-specific property management firms, to streamline the process.
| Opportunity | Benefits | Considerations |
|---|---|---|
| VA Loans | No down payment, no PMI | Requires acting quickly in competitive markets |
| Selling | High equity, strong seller’s market | Time your sale to peak PCS season |
| Renting Out | Steady income from high rental demand | Property management fees, potential tenant turnover |
For Veterans specifically, these pathways can create stable income streams or facilitate a smoother transition into civilian life. Owning a home in a Military-friendly region could also mean maintaining access to on-base amenities, shopping, or healthcare clinics, which can further enhance quality of life.
Tips for Navigating PCS Housing in 2025
Navigating the housing market during a PCS move or as a newly transitioned Veteran can be stressful. Here are practical steps to set you up for success:
- Start Early: Begin researching housing options at least three to six months prior to your PCS date or discharge date. Look into Military-friendly real estate websites like MilitaryByOwner.com for listings near your installation.
- Leverage VA Loans: Get pre-approved for a VA loan to strengthen your position as a buyer. Seek out a real estate agent who is a certified Military Relocation Professional (MRP) to guide you through any specific VA financing requirements.
- Monitor BAH Rates: Stay updated on 2025 BAH rates for your next duty station. Visit the official DOD BAH calculator to get the most accurate information for your rank and location.
- Explore Short-Term Rentals: If you anticipate a short stay or find yourself in a competitive housing market, consider short-term leases or corporate housing. This option offers flexibility and may help avoid scrambling for permanent housing under tight deadlines.
- Utilize Local Networks: Contact your base housing office for leads on available properties. Joining local social media groups focused on Military communities can also provide insider tips or off-market listings.
- Budget for Extra Costs: Keep in mind that the DOD generally covers only a limited amount of temporary lodging expenses. Make sure you have a financial cushion to handle extended hotel stays, security deposits, or any unexpected fees related to inspections or utilities.
FAQs About Military Relocation and Housing Markets
- Why are PCS moves up 12% in spring 2025?
The increase is largely due to post-pandemic realignments, strategic DOD initiatives that concentrate personnel at key installations, and more attractive BAH rates, which encourage off-base living. - How do PCS moves affect home prices?
As demand for housing near Military installations grows, home prices tend to rise. The National Association of Realtors projects a 3.8% national increase in 2025, with even sharper climbs in high-demand base-adjacent areas. - What is BAH, and how does it impact housing choices for Veterans?
BAH (Basic Allowance for Housing) is provided to active-duty service members to help cover housing costs. While Veterans no longer receive BAH unless they are still serving or in certain other statuses, understanding BAH rates can guide transition planning and budget considerations, especially if you remain in a Military community. - Are VA loans still a good option in 2025?
Absolutely. VA loans offer zero down payment, no PMI, and competitive interest rates, making them especially appealing for both new Military buyers and Veterans seeking to purchase near base-adjacent areas. - How can Military families and Veterans find affordable housing?
Start your home search early, work with an MRP who understands VA loans, consider short-term rentals if necessary, and stay attuned to local market conditions. Tools like VA housing assistance resources provide additional support. - What are the risks of renting out a home during a PCS?
While renting out a property can generate passive income, it also comes with costs for management, repairs, insurance, and potential tenant turnover. Proper planning and budgeting are essential to ensure profitability. - Why is on-base housing limited?
Base housing shortages result from high demand, slower-than-needed construction rates, and funding constraints. Locations such as Fort Carson or bases in Guam and Utah often experience persistent waitlists. - How can civilians prepare for Military-driven market changes?
Civilians in base-adjacent areas should keep an eye on local inventory, time home listings or rental decisions to peak PCS seasons, and possibly seek advice from real estate agents experienced with Military relocations. - What are the best base-adjacent markets for buyers?
Ogden-Clearfield, UT, and Jacksonville, FL, rank high for affordability and economic growth. Both markets offer strong job prospects and attract both Military and civilian buyers, making them prime spots for long-term real estate investments. - How long do Military families have to find housing during a PCS?
Typically, the DOD covers about 14 days of lodging. However, many families need more than 20 days to finalize their housing, especially in competitive markets. Planning ahead and saving for potential out-of-pocket costs is crucial.
Final Thoughts
In 2025, local housing markets near Military installations are balancing on a tightrope of growing demand and limited supply. With PCS moves surging, Veterans, active-duty families, and civilians alike are feeling the impact of rising home prices, fierce rental competition, and a construction boom that struggles to keep pace. While these conditions present real hurdles—like time-sensitive moves, affordability concerns, and emotional stress—there are also exciting opportunities for Military and Veteran home buying, selling, or renting out properties.
For Veterans, programs like the VA loan offer a substantial leg up in competitive markets. Zero down payments and no private mortgage insurance can significantly lower barriers to entry and help Veterans build equity faster. Also, timing your sale or rental listing around the PCS season can unlock a larger pool of potential buyers or tenants. While it’s important to stay mindful of the unique challenges—such as coverage gaps in BAH or tight timelines—the upside can be well worth the effort. By starting your research early, networking within the local community, and leveraging resources designed for Military and Veteran families, you can make the most of this dynamic real estate environment.
Above all, knowledge is power. Whether you’re aiming to buy your first home, sell a property you’ve built equity in, or simply stay ahead of the curve in a rapidly shifting market, staying informed and prepared remains your best strategy. Here’s to a successful 2025—and to creating a home base that truly supports you and your family in the years to come.
