According to data from Zillow, the anticipated one-year growth rate for home prices in the U.S. is 1.7%, with a median price of $395,220 expected to be reached in 2033. However, these numbers can vary significantly depending on the location. In fast-growing markets like Columbia, Missouri, the anticipated growth rate is 6.4% — more than three times the national average.
To determine the most attractive cities in which to buy real estate over the coming decade, GOBankingRates looked at homes that are currently priced below the national median of $333,910 with anticipated growth rates higher than the projected national rate. Although home prices don’t move in a strictly linear fashion, the one-year growth projection was primarily used to identify housing markets moving in the right direction.
Here are some of the top cities in reverse order of their rankings:
1. Dover, Delaware: Home values are projected to break through the national average in just five years.
2. Lakeland, Florida: It will take eight years for home values to surpass the national average, but buying now offers a price below the current national average.
3. Huntsville, Alabama: Despite a significant price deficit, home prices are expected to cross the national average in just eight years.
4. Pensacola, Florida: With a 3.9% growth projection, home prices in Pensacola are expected to exceed the national average by 2030.
5. Albuquerque, New Mexico: Home prices are projected to gain about $63,000 on average over the next six years and exceed the national average.
6. Yakima, Washington: Although currently below the national average, home prices in Yakima are expected to exceed it in just two years.
7. Fayetteville, Arkansas: After surpassing the national average in 2027, home values in Fayetteville could appreciate by over $140,000 in the next decade.
8. Daphne, Alabama: Home prices in Daphne are just below the national average, and they are projected to surpass it in just two years.
9. Savannah, Georgia: While currently priced low, home prices in Savannah are projected to be $67,000 above the national average in 10 years.
10. Knoxville, Tennessee: Home values in Knoxville are well below the national average now, but they are expected to surpass it in just five years.
11. Panama City, Florida: Prices in Panama City are expected to break the national average in two years and gain in value by about $150,000 in the next decade.
12. Athens, Georgia: Home prices in Athens are projected to exceed the national average in 2026.
These cities offer attractive opportunities for real estate buyers looking for favorable growth rates and potential future appreciation. Investing in these markets could prove beneficial in the coming years.
– Zillow data
– GOBankingRates analysis