The U.S. housing markets are filled with potential financial landmines, but some areas are positioned for significant growth. While a few markets have cooled off since the pandemic boom, others are poised to see home values rise sharply.
A number of factors cause these markets to turn into real estate hotspots. These include migration trends, job market expansion, infrastructure development, and supply constraints. Recently, GOBankingRates published a study that analyzed the markets that saw the highest gains between 2023 and 2024. These growth figures are resounding indicators of where values will continue to rise.
Here are 20 housing markets you should consider investing in before prices soar higher.
One of the leading performers is Rockford, Illinois. In August 2023, the average home price was $176,316, and by August 2024, it had increased to $195,509. This represents a one-year rise of almost 11% or $19,194. The Rockford prices are affordable, and its local economic growth makes it a favorite destination.
In New York, a number of cities were leading in terms of growth. In Syracuse, home values grew by 10.75% and stood at an average of $238,689. Binghamton recorded a 9.19% increase, and the current average price is at $185,020.
Another city that made the list is Rochester, New York, with a 7.8% growth rate. The pleasant surprise was Utica, New York, which made it up to 7.51%, and Scranton, Pennsylvania, with 7.43% respectively. These housing markets present cheaper options with a positive trend.
Multiple cities in Connecticut saw home values climb between 8 and 9.5%. Hartford’s average home value increased from $333,625 to $365,085. New Haven and Bridgeport followed closely behind, showing gains of 8.8% and 8.3%, respectively.
Norwich, Connecticut, added to the trend with an 8.22% increase. These housing markets benefit from a strong local economy and increased interest from buyers moving from nearby urban centers.
In New Jersey, Atlantic City posted an 8.62% increase, with home values rising to $361,554. Trenton also showed solid growth at 8.58%, reaching $423,014 in average home price. Both cities are drawing buyers due to improving infrastructure and proximity to major metros.
The Bay Area housing market remains strong, led by San Jose with a 10.71% jump. The average home price rose to $1.56 million. Tech industry growth and limited supply continue to push values higher.
San Diego is also experiencing upward movement with an 8% rise, reaching an average of $942,645. Its lifestyle appeal and steady job market keep demand high.
In the South, Kingsport, Tennessee, saw a nearly 8% increase. Meanwhile, Manchester, New Hampshire, and Providence, Rhode Island reported gains of 7.5% or more. These housing markets are growing as people seek affordable living outside big cities.
Smaller markets like Youngstown, Ohio, and Green Bay, Wisconsin, are quietly rising. Youngstown’s home values increased 7.26% to $161,939, while Green Bay climbed 7.19%, reaching $310,676.
Worcester, Massachusetts, rounded out the list with a 7.45% gain. These markets offer budget-friendly options with steady appreciation.
The common drivers in these housing markets include migration and economic opportunity. Remote work allows buyers to move away from expensive metros. Many are relocating to smaller cities where housing remains affordable. This is causing a surge in demand.
Local investments in infrastructure and business expansions also fuel growth. Meanwhile, housing supply continues to lag behind demand in most areas. Builders are not keeping pace with the need for new homes, which pushes prices higher.
The data highlights markets where home values are likely to continue rising. However, it is important to consider factors like local employment trends, infrastructure projects, and overall economic health before buying.
Interest rates and lending conditions will also impact affordability and returns. Buyers should carefully weigh their financing options and act decisively when they find the right market.
These 20 housing markets represent the next wave of real estate growth. From affordable Midwestern cities to high-demand coastal areas, these markets show strong upward trends. Buyers and investors looking for opportunities before prices climb further should focus on these areas.
While no investment is guaranteed, recent home value increases offer valuable insight. If you want to make a smart move in real estate, now is the time to consider these housing markets.
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