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10 Cities Where Home Prices Are Expected To Skyrocket in the Next 12 Months
If you've been thinking about buying property, whether for yourself or as an investment, you've likely seen the headlines about the housing market slowing down, which may give you reason to pause.
Nationally, Zillow expects home prices to drop about 2% in 2025 and another 1% by mid-2026. Zillow economists wrote in March, 'The rise in [active] listings is fueling softer [home] price growth, as greater supply provides more options and more bargaining power for buyers,' reported Fast Company.
What this means is that with more homes on the market and higher mortgage rates, buyers have more negotiating power.
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But this is just the national profile. However, home values are climbing in local areas, according to Norada Real Estate Investments. In some smaller cities, prices are appreciating due to strong job markets, steady population growth and fewer homes for sale.
These factors are helping certain local pockets grow even while much of the rest of the country cools off.
If you're looking for a place to buy now and watch values grow, these markets are expected to appreciate most in the next 12 months, according to Zillow, and might be worth a closer look.
Atlantic City, New Jersey
Projected price increase: 2.9%
Finally, after many years, tourism in Atlantic City (AC) is bouncing back, and the construction of casinos and hotel projects is bringing jobs and life back to the area. If you're after a coastal investment without the sky-high price tag, a property in AC could be your golden goose investment before values climb.
Kingston, New York
Projected price increase: 2.2%
As more people — especially boomers — leave New York City seeking more square footage, affordability, scenic views, and homes with backyards, Kingston, New York, a city nestled in the heart of Ulster County, at the base of the Catskill Mountains, is an attractive option in a city poised for growth.
Knoxville, Tennessee
Projected price increase: 2%
Anchored by the University of Tennessee and a strong healthcare sector, Knoxville, Tennessee, has a robust job market that's growing. The city is also a good investment for buyers looking for steady rental income with long-term appreciation to add to their retirement nest egg.
Torrington, Connecticut
Projected price increase: 1.9%
In this city, new housing and revitalization projects that include a railroad are giving the city an upgrade. Invest early, and you could see your property value grow alongside the community's redevelopment.
Rockford, Illinois
Projected price increase: 1.7%
With proximity to Chicago and low home prices, Rockford offers an opportunity to invest in property without a significant upfront cost, making it easier to build equity, especially for first-time buyers.
Concord, New Hampshire
Projected price increase: 1.7%
An hour car or train ride to Boston, Concord, the capital city of New Hampshire, is expected to rise in value. Home of the State House, the city provides government job opportunities and a growing job and housing market with room to grow.
Pottsville, Pennsylvania
Projected price increase: 1.7%
Affordable homes, no taxes on Social Security, access to healthcare facilities and a host of amenities like eateries make Pottsville, predicted to rise in value, a good financial investment for retirees and investors. However, the city currently has a low employment and commuting score and a crime score of C-, according to Area Vibes.
Fayetteville, Arkansas
Projected price increase: 1.6%
The University of Arkansas and a growing tech sector draw students and professionals to Fayetteville. Investing in real estate in the city could mean reliable rental income from students and professionals year-round.
Norwich, Connecticut
Projected price increase: 1.6%
Norwich is a quaint city in eastern Connecticut, where the Yantic, Shetucket and Quinebaug rivers flow into the city from the harbor. Named the 'rose of New England,' this lovely city is known for its large green spaces and rolling hills. With more space for less money compared to Connecticut's coastal markets, casinos and abundant venues, this destination could be worth exploring, given its steady growth.
East Stroudsburg, Pennsylvania
Projected price increase: 1.5%
Just 75 miles from New York City, East Stroudsburg offers a Poconos setting and a local university that attracts full-time residents, students and vacationers to its locale. Plus there are no taxes on Social Security in the state of Pennsylvania. Whether you live here year-round or rent out your property for the season or school year, buying in this market is expected to see solid price gains, offering opportunities for rental income and long-term growth.
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This article originally appeared on 10 Cities Where Home Prices Are Expected To Skyrocket in the Next 12 Months
