With 2025 just around the corner, everyone is ramping up for the end-of-the-year preparations, but if you are in the market to buy a new house, what will next 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.
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While some markets have cooled after the pandemic-induced boom, others are poised for significant growth through the end of 2024 and 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 for 2025.
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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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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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