11 Cities Where Home Values Are Expected To Rise Over the Next Year
Whether you are thinking about buying a new home or selling your current one, it can be challenging to know where to start. Recent volatility has rocked the market, but experts believe stability may be on the horizon, and some regions may see significant growth in home value over the next year. According to Zillow, home values nationwide are expected to increase 4.80% from $339,048 this year to $355,322.30 in 2024.
“After a wild couple of years, normal seasonal appreciation is returning to the housing market this spring. Barring any new macroeconomic shocks…ultra-low inventory should accelerate home value growth over the next twelve months,” said Orphe Divounguy, senior macroeconomist at Zillow Home Loans.
“Zillow expects the hottest markets will likely be smaller, sunny, relatively inexpensive metros. Likewise, more economical homes will be in higher demand. Affordability is still the top challenge in the market, Baby boomers are retiring and downsizing, and remote and hybrid work arrangements are still popular — all of which factors in,” he added.
We looked at data compiled from Zillow on which cities in Arizona, California, Florida and Texas are projected to have the highest increase in home value over the next year. Here are the 11 cities where you may want to consider buying to see an instant return on your investment.
Visalia, California
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 4.30%
Zillow notes that the home value index for April 2023 in Visalia is $324,491, forecasting it to rise to $338,444.11 for April 2024. All three of the California cities expected to have significant growth in home value are located in the central part of the state.
Bakersfield, California
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 4.70%
The second central California city to make the list is anticipated to see a home value index of $345,561.30 in April 2024, up from $330,049 this year.
Phoenix
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 4.80%
Of the four selected states, only two cities in Arizona were expected to see substantial growth in home value. Phoenix’s Zillow home value index for April 2023 was $435,984 and is projected to increase to $456,911.23 for April 2024.
Santa Maria, California
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 5.90%
The final of the West Coast cities to make the cut, Santa Maria is also the priciest. The Zillow home value index for April 2023 was placed at $891,235 and is forecasted to jump nearly 6% to $943,817.87 next year.
Waco, Texas
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 6.10%
Zillow’s home value index for Waco in April 2023 was $249,462 and is projected to increase to $264,679.18 in a year. Waco is one of three cities from the Lone Star State to make the list.
Killeen, Texas
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 6.60%
Killeen is the second Texas city expected to see a large leap in home value. With a forecasted home value index for April 2024 of $268,911.29, property owners may see as much as a 6.60% increase from this year. The April 2023 home value index for the city was $252,262.
McAllen, Texas
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 6.60%
McAllen had the lowest Zillow home value index for April 2023 at $173,037, but it is expected to increase to $184,457.44 by April 2024.
Tampa, Florida
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 6.70%
With an anticipated home value growth of 6.70%, Tampa is the first of three cities from the Sunshine State to make the list. The home value index for April 2023 was $367,956 and is forecasted to grow to $392,609.05 next year.
Tucson, Arizona
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 6.70%
The second Arizona city to make the list is Tucson with an April 2023 home value index of $333,840 and a projected increase to $356,207.28.
Crestview, Florida
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 6.80%
Crestview has a Zillow home value index for April 2023 of $445,654 and is expected to have a home value index of $475,958.47 for April 2024.
Pensacola, Florida
- Forecasted Percentage Home Value Growth April 2023 to April 2024: 6.90%
Finally, Pensacola tops Zillow’s list with a forecasted growth of 6.90%. The home value index is anticipated to increase from the April 2023 amount of $296,350 to $316,798.15 by April 2024.
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Methodology: Zillow looked at forecasts for home value growth through April 2024 among the 200 largest metros.
