10 Small Cities in the South Where Homes Are Rapidly Gaining Value

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A home is often considered a good investment because of its likelihood to appreciate in value over the years. Some areas see more radical upticks in value (and, with it, sales price) than others. Take La Crescenta-Montrose, a city in Los Angeles, with a livability score of 71 out of 100. The average home value in May 2025 was $1,351,730 — up 1.8% over the year prior. In just 365 days, the home appreciated by more than 24,000. 

Now, we tend to not see home values appreciate as rapidly in small Southern cities as we do in Los Angeles suburbs — but sometimes we do. In fact, sometimes we see far more substantial appreciation in just as short a window of time. GOBankingRates analyzed smaller towns to find the Southern cities where your home is on track to gain value. Home shoppers and real estate investors, it’s time to put these baby metros on your real estate radar — and to keep your eye on Kentucky in general. 

10. Owingsville, Kentucky

• Population: 1,977 
• 2020 average home value: $94,407 
• 2024 average home value: $147,178 
• 2025 average home value: $163,573 

9. Carlisle, Kentucky 

• Population: 3,536 
• 2020 average home value: $89,185 
• 2024 average home value: $131,897 
• 2025 average home value: $149,031 

8. Grayson, Kentucky 

• Population: 3,820 
• 2020 average home value: $92,424 
• 2024 average home value: $136,325 
• 2025 average home value: $154,251 

7. Greensburg, Kentucky 

• Population: 2,218  
• 2020 average home value: $92,090 
• 2024 average home value: $139,493 
• 2025 average home value: $156,925 

6. Whitesburg, Kentucky 

• Population: 1,998 
• 2020 average home value: $52,117 
• 2024 average home value: $66,327 
• 2025 average home value: $78,249

5. Stanton, Kentucky 

• Population: 3,211 
• 2020 average home value: $92,480 
• 2024 average home value: $150,522
• 2025 average home value: $168,140

4. Pembroke, Georgia 

• Population: 2,628 
• 2020 average home value: $133,782 
• 2024 average home value: $235,868 
• 2025 average home value: $259,071

3. Tompkinsville, Kentucky 

• Population: 2,672
• 2020 average home value: $66,190 
• 2024 average home value: $112,995 
• 2025 average home value: $127,071

2. Beattyville, Kentucky 

• Population: 1,948 
• 2020 average home value: $78,370 
• 2024 average home value: $123,222 
• 2025 average home value: $141,848

1. Olive Hill, Kentucky 

• Population: 1,488
• 2020 average home value: $67,385 
• 2024 average home value: $109,772 
• 2025 average home value: $125,579

Editor’s note: Photos are for representational purposes only and might not reflect the exact locations listed in this article.

Methodology: For this study, GOBankingRates analyzed smaller towns to find the cities where your home will gain value. Using the Zillow Home Value Index from February 2020, 2024 and 2025, the percentage change in home values was calculated. The cities with a larger increase than the national average were kept for this study. Using the U.S. Census American Community Survey, the total population can be sourced and cities with no more than 7,500 people were kept for this study. The 1-year and 5-year percent change in home values were calculated and were each scored with the highest score being the best. The cities were sorted to show the smaller cities where your home value will gain value. All data was collected on and is up to date as of March 28, 2025.

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