If you’re in the market to buy a new house, what will this year have in store for your budget? The U.S. housing market is filled with potential financial landmines but if you are looking at a certain area you might want to buy before the buying exceeds your budget.
Find Out: 6 Key Signs a Housing Market Will Soon Have Massive Price Drops
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While some markets have cooled after the pandemic-induced boom, others are poised for significant growth throughout 2025. Various factors, including migration trends, job market expansion, infrastructure development and housing supply constraints, contribute to these regions becoming real estate hotbeds.
GOBankingRates recently conducted a study to find which markets are quickly growing based on increased home value year over year. The statistical growth from 2023 to 2024 can be used as a good indicator of how those markets are projected to continuously grow in 2025. Here are 20 housing markets estimated for growth that you should consider investing in.
Rockford, Illinois
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August 2023 average home value: $176,316
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August 2024 average home value: $195,509
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One-year home value change (%): 10.89%
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One-year home value change ($): $19,194
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Syracuse, New York
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August 2023 average home value: $215,526
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August 2024 average home value: $238,689
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One-year home value change (%): 10.75%
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One-year home value change ($): $23,162
Consider This: 5 Cities Where Homes Will Be a Total Steal in 2 Years
San Jose, California
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August 2023 average home value: $1,411,721
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August 2024 average home value: $1,562,939
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One-year home value change (%): 10.71%
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One-year home value change ($): $151,218
Hartford, Connecticut
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August 2023 average home value: $333,625
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August 2024 average home value: $365,085
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One-year home value change (%): 9.43%
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One-year home value change ($): $31,460
Binghamton, New York
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August 2023 average home value: $169,454
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August 2024 average home value: $185,020
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One-year home value change (%): 9.19%
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One-year home value change ($): $15,566
Find Out: America’s 50 Fastest-Growing Suburbs With Home Values Under $500,000
New Haven, Connecticut
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August 2023 average home value: $342,728
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August 2024 average home value: $372,992
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One-year home value change (%): 8.83%
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One-year home value change ($): $30,264
Atlantic City, New Jersey
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August 2023 average home value: $332,870
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August 2024 average home value: $361,554
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One-year home value change (%): 8.62%
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One-year home value change ($): $28,684
Trenton, New Jersey
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August 2023 average home value: $389,573
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August 2024 average home value: $423,014
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One-year home value change (%): 8.58%
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One-year home value change ($): $33,441
Check Out: 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years
Bridgeport, Connecticut
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August 2023 average home value: $578,561
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August 2024 average home value: $626,365
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One-year home value change (%): 8.26%
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One-year home value change ($): $47,803
Norwich, Connecticut
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August 2023 average home value: $359,126
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August 2024 average home value: $388,652
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One-year home value change (%): 8.22%
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One-year home value change ($): $29,526
San Diego
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August 2023 average home value: $872,580
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August 2024 average home value: $942,645
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One-year home value change (%): 8.03%
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One-year home value change ($): $70,065
Explore More: 3 Best Florida Cities To Buy Property in the Next 5 Years, According To Real Estate Agents
Kingsport, Tennessee
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August 2023 average home value: $216,353
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August 2024 average home value: $233,467
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One-year home value change (%): 7.91%
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One-year home value change ($): $17,114
Rochester, New York
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August 2023 average home value: $239,538
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August 2024 average home value: $258,227
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One-year home value change (%): 7.80%
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One-year home value change ($): $18,690
Manchester, New Hampshire
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August 2023 average home value: $455,143
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August 2024 average home value: $489,533
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One-year home value change (%): 7.56%
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One-year home value change ($): $34,389
Discover More: 10 Home Features That Have Decreased the Most in Popularity (And How Much Homes with Them Cost)
Utica, New York
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August 2023 average home value: $194,405
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August 2024 average home value: $208,997
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One-year home value change (%): 7.51%
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One-year home value change ($): $14,593
Providence, Rhode Island
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August 2023 average home value: $453,172
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August 2024 average home value: $487,161
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One-year home value change (%): 7.50%
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One-year home value change ($): $33,989
Worcester, Massachusetts
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August 2023 average home value: $425,668
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August 2024 average home value: $457,399
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One-year home value change (%): 7.45%
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One-year home value change ($): $31,731
Read More: Renting vs. Owning a Home — Which Will Be Cheaper in 2025?
Scranton, Pennsylvania
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August 2023 average home value: $197,599
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August 2024 average home value: $212,287
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One-year home value change (%): 7.43%
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One-year home value change ($): $14,688
Youngstown, Ohio
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August 2023 average home value: $150,977
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August 2024 average home value: $161,939
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One-year home value change (%): 7.26%
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One-year home value change ($): $10,961
Green Bay, Wisconsin
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August 2023 average home value: $289,825
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August 2024 average home value: $310,676
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One-year home value change (%): 7.19%
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One-year home value change ($): $20,851
Methodology: For this piece, GOBankingRates looked at the 200 largest Metro Statistical Areas (MSA) according to the real estate market and found the following ten factors. For each MSA GOBankingRates found: 1) one-year percent change in home value; 2) one-year change in home value in USD; 3) two-year percent change in home value; 4) two-year change in home value in USD; 5) for-sale inventory; 6) mean days from listing to pending; 7) mean list-to-sale ratio; 8) mean days from pending to close; 9) share of listings with a price cut; and 10) mean price cut. All data was sourced from Zillow’s June 2024 data. All ten factors were then scored and combined with the highest score being the worst housing markets. In final calculations, factors 1), 2), 9) and 10) were weighted 2x and factor 5) was weighted 0.5x. All data was collected and is up to date as of Sept. 26, 2024.
Photo disclaimer: Any photos are for illustrative purposes only. The closest major city outside of the city mentioned it the article may have been used.
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This article originally appeared on GOBankingRates.com: 20 Housing Markets Where Homes Will Skyrocket in Value Before the End of 2025