GOBankingRates

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

RobHainer / Getty Images/iStockphoto

Susilyn / Shutterstock.com

The national average home value is $356,336 in the U.S., a figure that’s expected to rise by 2.7% over the next year. In some cities, the average home costs less than that — but not for long. In those places, housing prices are projected to rise by 3%, 4% and, in some cases, even more than 8%.

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

Student Loan Forgiveness: Mark These 4 Dates On Your Calendar Now
House Money: Should You Still Buy a Home in Today’s Market?

Using data from Zillow, GOBankingRates identified 14 cities that cost less than average now but will have above-mean list prices within the next five years. Florida dominates the list with four of its cities in the ranking. California has two — and neither of those states are geographical outliers. The home states of all but one city on the list are on one coast or the other.

If you’re thinking of buying in any one of these 14 cities, now might be the time to pull the trigger; they’re still underpriced now, but they won’t be by 2027.

Building Wealth
Cbl62 / Wikimedia Commons CC-BY-SA 3

El Centro, California

  • Current home value: $338,029
  • Year it will become unaffordable: 2023
  • Projected home value in 2023: $366,761
  • U.S. average projected home value in 2023: $365,957
  • Difference in value: $804

Take Our Poll: Do You Have an Emergency Fund Established?

LMspencer / Shutterstock.com

Daphne, Alabama

  • Current home value: $335,450
  • Year it will become unaffordable: 2024
  • Projected home value in 2024: $381,906
  • U.S. average projected home value in 2024: $375,838
  • Difference in value: $6,068
Joseph Sohm / Shutterstock.com

Claremont, New Hampshire

  • Current home value: $347,832
  • Year it will become unaffordable: 2024
  • Projected home value in 2024: $384,947
  • U.S. average projected home value in 2024: $375,838
  • Difference in value: $9,109
Real Window Creative / Shutterstock.com

Yakima, Washington

  • Current home value: $341,953
  • Year it will become unaffordable: 2024
  • Projected home value in 2024: $376,285
  • U.S. average projected home value in 2024: $375,838
  • Difference in value: $447
RobHainer / Getty Images/iStockphoto

Lakeland, Florida

  • Current home value: $320,914
  • Year it will become unaffordable: 2025
  • Projected home value in 2025: $393,133
  • U.S. average projected home value in 2025: $385,986
  • Difference in value: $7,147

Building Wealth

Homosassa Springs, Florida

  • Current home value: $287,730
  • Year it will become unaffordable: 2026
  • Projected home value in 2026: $397,285
  • U.S. average projected home value in 2026: $396,407
  • Difference in value: $878
Kruck20 / Getty Images/iStockphoto

Knoxville, Tennessee

  • Current home value: $318,783
  • Year it will become unaffordable: 2026
  • Projected home value in 2026: $405,502
  • U.S. average projected home value in 2026: $396,407
  • Difference in value: $9,095
Sean Pavone / Shutterstock.com

Athens, Georgia

  • Current home value: $320,772
  • Year it will become unaffordable: 2026
  • Projected home value in 2026: $401,920
  • U.S. average projected home value in 2026: $396,407
  • Difference in value: $5,513
chapin31 / iStock.com

Pueblo, Colorado

  • Current home value: $312,503
  • Year it will become unaffordable: 2026
  • Projected home value in 2026: $399,013
  • U.S. average projected home value in 2026: $396,407
  • Difference in value: $2,606
aimintang / Getty Images

New Haven, Connecticut

  • Current home value: $353,913
  • Year it will become unaffordable: 2026
  • Projected home value in 2026: $396,788
  • U.S. average projected home value in 2026: $396,407
  • Difference in value: $381
DenisTangneyJr / Getty Images

Atlantic City, New Jersey

  • Current home value: $325,599
  • Year it will become unaffordable: 2027
  • Projected home value in 2027: $413,581
  • U.S. average projected home value in 2027: $407,110
  • Difference in value: $6,471

Building Wealth
DenisTangneyJr / iStock.com

Bakersfield, California

  • Current home value: $342,110
  • Year it will become unaffordable: 2027
  • Projected home value in 2027: $410,260
  • U.S. average projected home value in 2027: $407,110
  • Difference in value: $3,150
©Shutterstock.com

Panama City, Florida

  • Current home value: $331,260
  • Year it will become unaffordable: 2027
  • Projected home value in 2027: $408,875
  • U.S. average projected home value in 2027: $407,110
  • Difference in value: $1,765
Michael Warren / Getty Images/iStockphoto

Ocala, Florida

  • Current home value: $274,641
  • Year it will become unaffordable: 2027
  • Projected home value in 2027: $407,288
  • U.S. average projected home value in 2027: $407,110
  • Difference in value: $178

Methodology: GOBankingRates took the overall U.S. median home value and projected its growth over five years using Zillow’s July 2022-23 one-year forecast. This projection was then compared to the projections of 537 U.S. MSAs that currently have home prices below the national median, with those surpassing the national median in the next five years (plus 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 Sept. 6, 2022.

More From GOBankingRates