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These Are the 20 Most Underpriced Housing Markets in the U.S.

February 13, 2024

4 min Read

Written by Jami Farkas

Edited by Ashleigh Ray

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Investing in real estate is one many ways people create a path to wealth, and is why prospective homebuyers shop for properties in communities where homes will appreciate in value overtime. Before choosing a place to live, homebuyers often will work with their real estate agent to find out the average home value in the area or do their own internet sleuthing.

After all, new homeowners want to move in knowing that equity is growing and confident they’ve made an incredible purchase.

But what are the best cities to buy a home to achieve financial growth in the investment? GOBankingRates did the research for you, analyzing data from Zillow using the Zillow Median List Prices and the Zillow Home Value Index for Single Family Homes. The 2023 average home value was subtracted from each city’s median list price. GOBankingRates then ranked the top 20 cities in terms of the largest difference between the value and list price. Those looking to find a new home might want to look in one of these 20 cities for a potential great investment.

Cape Coral, Florida

2023 median list price: $169,989
2023 average home value: $419,840
Difference between list price and home value: $249,851

Eau Claire, Wisconsin

2023 median list price: $178,089
2023 average home value: $288,964
Difference between list price and home value: $110,875

Urban Honolulu, Hawaii

2023 median list price: $984,436
2023 average home value: $1,057,256
Difference between list price and home value: $72,819

Punta Gorda, Florida

2023 median list price: $318,481
2023 average home value: $378,501
Difference between list price and home value: $60,020

San Francisco, California

2023 median list price: $1,136,056
2023 average home value: $1,189,841
Difference between list price and home value: $53,785

Milwaukee, Wisconsin

2023 median list price: $286,044
2023 average home value: $334,836
Difference between list price and home value: $48,791

Macon, Georgia

2023 median list price: $123,167
2023 average home value: $171,606
Difference between list price and home value: $48,439

Cedar Rapids, Iowa

2023 median list price: $177,746
2023 average home value: $225,839
Difference between list price and home value: $48,093

Baltimore, Maryland

2023 median list price: $328,544
2023 average home value: $374,024
Difference between list price and home value: $45,480

Philadelphia, Pennsylvania

2023 median list price: $302,803
2023 average home value: $344,873
Difference between list price and home value: $42,071

Lake Havasu City, Arizona

2023 median list price: $320,231
2023 average home value: $361,620
Difference between list price and home value: $41,389

Rochester, New York

2023 median list price: $191,600
2023 average home value: $230,830
Difference between list price and home value: $39,230

Asheville, North Carolina

2023 median list price: $380,239
2023 average home value: $415,625
Difference between list price and home value: $35,386

Buffalo, New York

2023 median list price: $213,783
2023 average home value: $247,822
Difference between list price and home value: $34,039

Racine, Wisconsin

2023 median list price: $228,853
2023 average home value: $262,844
Difference between list price and home value: $33,991

St. Louis, Missouri

2023 median list price: $210,528
2023 average home value: $243,391
Difference between list price and home value: $32,864

Muskegon, Michigan

2023 median list price: $180,644
2023 average home value: $211,526
Difference between list price and home value: $30,882

Detroit, Michigan

2023 median list price: $211,200
2023 average home value: $241,852
Difference between list price and home value: $30,652

Harrisburg, Pennsylvania

2023 median list price: $236,172
2023 average home value: $266,254
Difference between list price and home value: $30,082

Akron, Ohio

2023 median list price: $177,300
2023 average home value: $205,482
Difference between list price and home value: $28,182

Whether you’re looking for a new home to live in for the next several years or an investment property to bring in some extra income, these cities are a great place to start.

To find the Metro areas with the most underpriced homes, GOBankingRates analyzed data from Zillow using the Zillow Median List Prices and the Zillow Home Value Index for Single Family Homes. GOBankingRates found (1) the 2023 average median listing price and (2) the 2023 average home values. Then, GOBankingRates calculated the difference, sorted by the largest differences, and kept the top results. All data is up-to-date as of August 8, 2023.

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.

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