Many financial experts recommend investing in real estate, which can help hedge against inflation and bring diversity to your portfolio. But, like all investments, real estate has certain risks. One of the most dire possibilities is that you invest in a location that is seeing property depreciate in value.
Ideally, you’ll invest in a city where the housing market is booming and showing stability for long-term growth. In a new study, GOBankingRates analyzed cities across the U.S. to find the spots where real estate investors are earning the most money. These are the top 20, in order from the cities earning the least to the most in real estate investments.
Worcester, Massachusetts
- Average single family home price: $435,133
- Percentage of homes sold above list price: 63.4%
- Share of listings with price cut: 18.3%
- Home value forecast change for November 2024: 0.6%
- Home value forecast change for August 2025: 2.5%
Providence, Rhode Island
- Average single family home price: $402,504
- Percentage of homes sold above list price: 62.2%
- Share of listings with price cut: 17.4%
- Home value forecast change for November 2024: 0.8%
- Home value forecast change for August 2025: 2.9%
Buffalo, New York
- Average single family home price: $232,475
- Percentage of homes sold above list price: 70.8%
- Share of listings with price cut: 16.9%
- Home value forecast change for November 2024: 0.0%
- Home value forecast change for August 2025: 1.7%
Beaver Dam, Wisconsin
- Average single family home price: $259,536
- Percentage of homes sold above list price: 55.6%
- Share of listings with price cut: 12.4%
- Home value forecast change for November 2024: 0.3%
- Home value forecast change for August 2025: 1.6%
Madison, Wisconsin
- Average single family home price: $426,563
- Percentage of homes sold above list price: 67.4%
- Share of listings with price cut: 14.1%
- Home value forecast change for November 2024: -0.3%
- Home value forecast change for August 2025: 0.7%
Bridgeport, Connecticut
- Average single family home price: $364,629
- Percentage of homes sold above list price: 63.4%
- Share of listings with price cut: 14.8%
- Home value forecast change for November 2024: 0.2%
- Home value forecast change for August 2025: 1.9%
Springfield, Massachusetts
- Average single family home price: $287,106
- Percentage of homes sold above list price: 66.9%
- Share of listings with price cut: 16.0%
- Home value forecast change for November 2024: 0.4%
- Home value forecast change for August 2025: 1.8%
Janesville, Wisconsin
- Average single family home price: $269,104
- Percentage of homes sold above list price: 56.7%
- Share of listings with price cut: 11.9%
- Home value forecast change for November 2024: 0.2%
- Home value forecast change for August 2025: 1.9%
New Haven, Connecticut
- Average single family home price: $325,033
- Percentage of homes sold above list price: 66.9%
- Share of listings with price cut: 17.9%
- Home value forecast change for November 2024: 0.8%
- Home value forecast change for August 2025: 3.5%
Oshkosh, Wisconsin
- Average single family home price: $233,015
- Percentage of homes sold above list price: 58.2%
- Share of listings with price cut: 10.0%
- Home value forecast change for November 2024: -0.2%
- Home value forecast change for August 2025: 0.9%
Green Bay, Wisconsin
- Average single family home price: $255,883
- Percentage of homes sold above list price: 62.7%
- Share of listings with price cut: 12.6%
- Home value forecast change for November 2024: 0.1%
- Home value forecast change for August 2025: 2.0%
Norwich, Connecticut
- Average single family home price: $276,488
- Percentage of homes sold above list price: 61.4%
- Share of listings with price cut: 14.8%
- Home value forecast change for November 2024: 0.8%
- Home value forecast change for August 2025: 3.2%
San Jose, California
- Average single family home price: $1,509,775
- Percentage of homes sold above list price: 74.4%
- Share of listings with price cut: 15.8%
- Home value forecast change for November 2024: 0.5%
- Home value forecast change for August 2025: 0.4%
Syracuse, New York
- Average single family home price: $195,362
- Percentage of homes sold above list price: 70.4%
- Share of listings with price cut: 15.2%
- Home value forecast change for November 2024: 0.4%
- Home value forecast change for August 2025: 3.0%
Appleton, Wisconsin
- Average single family home price: $272,935
- Percentage of homes sold above list price: 64.8%
- Share of listings with price cut: 9.3%
- Home value forecast change for November 2024: 0.2%
- Home value forecast change for August 2025: 1.7%
Hartford, Connecticut
- Average single family home price: $244,896
- Percentage of homes sold above list price: 73.3%
- Share of listings with price cut: 14.4%
- Home value forecast change for November 2024: 0.7%
- Home value forecast change for August 2025: 3.0%
Concord, New Hampshire
- Average single family home price: $451,825
- Percentage of homes sold above list price: 74.6%
- Share of listings with price cut: 15.8%
- Home value forecast change for November 2024: 0.9%
- Home value forecast change for August 2025: 4.3%
Manchester, New Hampshire
- Average single family home price: $440,686
- Percentage of homes sold above list price: 76.7%
- Share of listings with price cut: 14.4%
- Home value forecast change for November 2024: 0.6%
- Home value forecast change for August 2025: 3.5%
Trenton, New Jersey
- Average single family home price: $335,069
- Percentage of homes sold above list price: 72.1%
- Share of listings with price cut: 11.7%
- Home value forecast change for November 2024: 0.7%
- Home value forecast change for August 2025: 2.9%
Rochester, New York
- Average single family home price: $224,541
- Percentage of homes sold above list price: 82.1%
- Share of listings with price cut: 10.8%
- Home value forecast change for November 2024: 0.0%
- Home value forecast change for August 2025: 2.6%
Methodology: For this study, GOBankingRates analyzed cities to find the places where real estate investors are earning the most money. Using Zillow research data, locations with housing data were recorded. For each location, a number of factors were found, including: total population, population ages 65 and over, total households and household median income, all sourced from the U.S. Census American Community Survey. Using this data, the percentage of the population ages 65 and over can be calculated. The cost-of-living indexes were sourced from Sperling’s BestPlaces and include the grocery, healthcare, housing, utilities, transportation and miscellaneous cost-of-living indexes. Using the cost-of-living indexes and the national average expenditure costs, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the expenditure cost for each location can be calculated. The average single family home value was sourced from the Zillow Home Value Index for September 2024. Using the average single family home value, assuming a 10% down payment, and using the national average 30 year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated. The average expenditure and mortgage costs were used to find a total cost of living for each location. The estimated future home value for November 2024 and August 2025 were both sourced from the Zillow Home Value Forecast. Shares of listing with price cuts, the median percentage price cut from listing prices, the percent of homes sold above listings, and percentage of homes sold below listings were all sourced from Zillow research data. The percentage of homes sold above listing price was scored and weighted at 1.00, the listings with price cuts percentage was scored and weighted at 1.00, the home forecast for November 2024 was scored and weighted at 0.50, and the home forecast for August 2025 was scored and weighted at 0.50. All the scores were summed and sorted to show the places where real estate investors will earn the most. All data was collected on and is up to date as of Oct. 4, 2024.
Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.