5 Livable US Cities That Have Skyrocketed in Value Over the Past 5 Years
Written by
Martin Dasko
Edited by
Zuri Anderson
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According to the National Association of Realtors (NAR), real estate professionals can expect to see an increase in activity in 2026, with predictions that home sales will rise by 14% and home prices will increase by 4%. NAR believes home prices will rise due to a combination of job growth and market supply shortages.
While we will have to wait to see if these predictions are accurate, the experts clearly believe that home values will go up in 2026. As a result, GOBankingRates consulted with experts and data to identify American cities that rank high on the Livability Index that have also experienced an upward trend in average home values over the last five years or so.
The data on the cost of living for a family of four were compiled from Livingcost.org; the Livability Index came from the AARP database; and the Zillow Home Value Index was used to compare changes in housing prices from 2020 to 2025.
New York, New York
- Change in home prices from 2020 to 2025: $730,828 to $799,871
- Average monthly cost of living: $9,136
- Overall livability score: 62
New York ranks number five on the AARP list of the top large cities with a population over 500,000. Another Zillow article also listed New York among the metros with the largest year-over-year increase in home values.
Resonance’s World’s Best Cities 2026 report just ranked New York City at number two for the entire globe and considered it the “perpetual heartbeat” of America. The AARP data notes that the median household income is at $90,602, and that the city excels in transportation and neighborhood.
When it comes to rising real estate prices, recent research from Realtor.com found that people are leaving the city due to a lack of housing supply options. The supply challenges have pushed the median asking rent to $3,491 in the second quarter of 2025, and mortgage originations have dropped to the lowest level since 2006. While the city ranks high on the Livability Index, it’s evident that prices are making it more expensive to cover housing expenses.
Madison, Wisconsin
- Change in home prices from 2020 to 2025: $303,015 to $417,296
- Average monthly cost of living: $5,868
- Overall livability score: 66
“Madison also frequently finishes as one of the best U.S. cities for livability, with great healthcare, parks and walkability,” said Ben Mizes, a real estate expert and co-founder at Clever Offers. Zillow data shows consistent home value increases over the past five years, which Mizes believes is driven by strong demand from its university, tech and biotech sectors.
The AARP ranks Madison third among large cities, with a population of 268,516. However, experts have stated that housing supply hasn’t kept pace with population growth over the last decade, bringing prices up.
Minneapolis, Minnesota
- Change in home prices from 2020 to 2025: $289,712 to $320,925
- Average monthly cost of living: $5,756
- Overall livability score: 64
Minneapolis ranks highly for transportation, green space and neighborhood amenities on the AARP index. Mizes added, “The city also remains relatively affordable compared to many other major urban centers, an incentive for buyers seeking both value and a high quality of life.”
Home values have increased significantly in recent years, driven by a diversified job market and limited inventory. The most recent Redfin data noted that the Minneapolis real estate market was very competitive, with homes selling in about 22 days, and that the median sale price had increased by 2.8% in the last year to reach $349,400.
Arlington, Virginia
- Change in home prices from 2020 to 2025: $717,805 to $805,764
- Average monthly cost of living: $11,100
- Overall livability score: 67
Arlington is right at the top of the AARP ranking of large cities (100,000 to 499,000) for livability, with excellent transit and lots of jobs nearby. Zillow reports strong price growth over the last five years, which Mizes attributes to the continued demand in the greater D.C. area and growth in tech and government contracting businesses.
SmartAsset recently reported that Arlington was the second-happiest city in America, citing that the city had the highest life expectancy and did well across all well-being categories. While it’s an expensive city to live in, housing prices have continued to climb despite the city remaining one of the happiest.
Ann Arbor, Michigan
- Change in home prices from 2020 to 2025: $394,640 to $509,975
- Average monthly cost of living: $5,501
- Overall livability score: 62
“The neighborhood is one of the most livable thanks to its good transit access, quality of health care and cultural attractions,” remarked Mizes. Ann Arbor is ranked 16th among large cities on the AARP list, but home values have risen sharply in recent years due to a lack of supply.
A recent article on MLive.com reported that inventory rose to 2.9 months of supply as of September, shifting the housing market from a seller’s market to a more balanced one. While buyers may finally have more leverage, housing prices have risen significantly over the last five years.
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