In Less Than 5 Years, You Won’t Be Able To Afford a Home in These Cities

Home prices have been on a wild ride the past few years.

The national average home value, as of April 2023, is $339,459 in the U.S., a figure that’s expected to rise by 4.8% to $429,135 by 2028. In some cities, the average home costs less than that — but not for long. In those places, housing prices are projected to rise, in some cases, quite significantly.

There, rising prices are outpacing typical home appreciation so quickly that homes that are below the national average today will soon be more expensive.

Using data from Zillow, GOBankingRates identified 15 cities that cost less than average now but will have above-mean list prices within the next five years. Idaho dominates the list with four of its cities in the ranking.

If you’re thinking of buying in any one of these 15 cities, now might be the time to pull the trigger; they’re still underpriced now, but they won’t be by 2028.

• April 2023 home value: $336,435
• Year it will become unaffordable: 2024
• Projected home value in 2024: $377,144
• U.S. average projected home value: $355,754
• Difference in value: $21,390

• April 2023 home value: $336,893
• Year it will become unaffordable: 2024
• Projected home value in 2024: $370,245 
• U.S. average projected home value: $355,754
• Difference in value: $14,491

• April 2023 home value: $305,095
• Year it will become unaffordable: 2026
• Projected home value in 2026: $397,286
• U.S. average projected home value: $390,726
• Difference in value: $6,560

• April 2023 home value: $323,129
• Year it will become unaffordable: 2025
• Projected home value in 2025: $374,807
• U.S. average projected home value: $372,830
• Difference in value: $1,977

• April 2023 home value: $331,509
• Year it will become unaffordable: 2025
• Projected home value in 2025: $378,835
• U.S. average projected home value: $372,830
• Difference in value: $6,005

• April 2023 home value: $327,252
• Year it will become unaffordable: 2025
• Projected home value in 2025: $373,971
• U.S. average projected home value: $372,830
• Difference in value: $1,141

• April 2023 home value: $331,636
• Year it will become unaffordable: 2025
• Projected home value in 2025: $376,856
• U.S. average projected home value: $372,830
• Difference in value: $4,026

• April 2023 home value: $310,903
• Year it will become unaffordable: 2027
• Projected home value in 2027: $421,415
• U.S. average projected home value: $409,480
• Difference in value: $11,935

Check Out: Cheapest Places To Buy a Home in Every State

• April 2023 home value: $330,790
• Year it will become unaffordable: 2025
• Projected home value in 2025: $375,190
• U.S. average projected home value: $372,830
• Difference in value: $2,360

• April 2023 home value: $320,510
• Year it will become unaffordable: 2026
• Projected home value in 2026: $393,740
• U.S. average projected home value: $390,726
• Difference in value: $3,014

• April 2023 home value: $332,237
• Year it will become unaffordable: 2025
• Projected home value in 2025: $375,417
• U.S. average projected home value: $372,830
• Difference in value: $2,587

• April 2023 home value: $322,375
• Year it will become unaffordable: 2026
• Projected home value in 2026: $393,817
• U.S. average projected home value: $390,726
• Difference in value: $3,091

• April 2023 home value: $337,314
• Year it will become unaffordable: 2024
• Projected home value in 2024: $356,878
• U.S. average projected home value: $355,754
• Difference in value: $1,124

• April 2023 home value: $337,908
• Year it will become unaffordable: 2024
• Projected home value in 2024: $356,831
• U.S. average projected home value: $355,754
• Difference in value: $1,077

• April 2023 home value: $329,421
• Year it will become unaffordable: 2026
• Projected home value in 2026: $393,457
• U.S. average projected home value in 2026: $390,726
• Difference in value: $2,731

Andrew Lisa contributed to the reporting for this article.

Methodology: GOBankingRates took the overall U.S. median home value and projected its growth over 5 years using Zillow’s April 2023-24 one-year forecast. This projection was then compared to the projections of 704 U.S. MSA’s that currently have home prices below the national median, with those surpassing the national median in the next 5 years (plus its projected growth rate over the same period) being deemed “not affordable.” For each “not affordable” city over the next decade, GOBankingRates found the following factors: (1) year the city will become “not affordable”; (2) projected home value for that year; (3) US average projected home value for that year; and (4) the difference in value between factors (2) and (3). NOTE: GOBankingRates does not expect growth in home value to stay stagnant at one current rate for the next decade, but using these constant figures gives us an idea where certain markets are heading without unforeseen market disruptors in the future. All data used to conduct this study was compiled and verified on May 31, 2023.