15 Neighborhoods That Will See the Biggest Increases in Home Prices in the Next Year

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Though mortgage rates inched down a bit in August, many prospective homebuyers are waiting for rates to fall more in order to be able to afford a home. If you’re one of those holding out for lower rates in 2025 or still in the process of saving up, it’s worth knowing which neighborhoods will and will not be friendly to your budget. 

In which cities will home prices soar over the next year? Recently, SmartAsset ranked 2,000 of the largest U.S. ZIP codes based on the projected average dollar increase in home prices between August 2024 and August 2025. Below are the 15 cities expected to see the biggest jumps in price, based on this research. 

15. Kalispell, Montana: ZIP 59901

• Projected increase in home values ($) for August 2025: $18,716 
• Projected increase in home values (%) for August 2025: 3.4%
• Average home value as of Aug. 31, 2024: $550,440 

14. Costa Mesa, California: ZIP 92627

• Projected increase in home values ($) for August 2025: $18,871
• Projected increase in home values (%) for August 2025: 1.5%
• Average home value as of Aug. 31, 2024: $1,257,987

13. Mission Viejo, California: ZIP 92692 

• Projected increase in home values ($) for August 2025: $19,142
• Projected increase in home values (%) for August 2025: 1.6%
• Average home value as of Aug. 31, 2024: $1,196,327

12. Chino Hills, California: ZIP 91709

• Projected increase in home values ($) for August 2025: $19,727
• Projected increase in home values (%) for August 2025: 2.0%
• Average home value as of Aug. 31, 2024: $986,282

11. Huntington Beach, California: ZIP 92646 

• Projected increase in home values ($) for August 2025: $19,779
• Projected increase in home values (%) for August 2025: 1.5%
• Average home value as of Aug. 31, 2024: $1,318,558

10.  Mission Viejo, California: ZIP 92691

• Projected increase in home values ($) for August 2025: $20,051
• Projected increase in home values (%) for August 2025: 1.7%
• Average home value as of Aug. 31, 2024: $1,179,422

9. Goleta, California: ZIP 93117

• Projected increase in home values ($) for August 2025: $20,516  
• Projected increase in home values (%) for August 2025: 1.5% 
• Average home value as of Aug. 31, 2024: $1,367,679  

8.  Fountain Valley, California: ZIP 92708

• Projected increase in home values ($) for August 2025: $21,053 
• Projected increase in home values (%) for August 2025: 1.6% 
• Average home value as of Aug. 31, 2024: $1,315,727

7. Laguna Niguel, California: ZIP 92677   

• Projected increase in home values ($) for August 2025: $21,321
• Projected increase in home values (%) for August 2025: 1.5% 
• Average home value as of Aug. 31, 2024: $1,421,303

6. Rancho Palos Verdes, California: ZIP 90275

• Projected increase in home values ($) for August 2025: $22,146
• Projected increase in home values (%) for August 2025: 1.1% 
• Average home value as of Aug. 31, 2024: $1,845,432

5. Costa Mesa, California: ZIP 92626

• Projected increase in home values ($) for August 2025: $22,730
• Projected increase in home values (%) for August 2025: 1.7% 
• Average home value as of Aug. 31, 2024: $1,336,992

4. Knoxville, Tennessee: ZIP 37922 

• Projected increase in home values ($) for August 2025: $24,461
• Projected increase in home values (%) for August 2025: 4.0% 
• Average home value as of Aug. 31, 2024: $611,505

3. North Tustin, California: ZIP 92705

• Projected increase in home values ($) for August 2025: $25,806
• Projected increase in home values (%) for August 2025: 1.7%
• Average home value as of Aug. 31, 2024: $1,517,950

2. Irvine, California: ZIP 92620

• Projected increase in home values ($) for August 2025: $28,957
• Projected increase in home values (%) for August 2025: 1.7%
• Average home value as of Aug. 31, 2024: $1,703,276

1. Irvine, California: ZIP 92618

• Projected increase in home values ($) for August 2025: $32,456
• Projected increase in home values (%) for August 2025: 2.0%
• Average home value as of Aug. 31, 2024: $1,622,752

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