5 States Where Homes Are Likely To Gain in Value, According to Experts
Written by
Jordan Rosenfeld
Edited by
Cory Dudak
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While buying a home is a worthy endeavor to provide you the stability of a place to live, it’s ideal to buy a home that will also grow in value so that you can maximize your equity.
The housing market has been in a tough place the past few years due to a combination of low inventory and high interest rates, but that might start to shift now that interest rates have come down some.
Below, real estate experts suggested some states where homes are likely to gain in value.
Texas
The Lone Star State remains a great place to buy a home if you want to see gains in value, according to Daniel Cabrera, founder and chief executive of the Fire Damage House Buyer. He pointed out that cities like Austin, Dallas and San Antonio are good places to buy due to growth in technology startups, companies relocating their businesses and raising populations — hence, creating demand for housing.
Additionally, the state keeps attracting new residents due to “job opportunities, lower taxes, and an ideal quality of life” Cabrera said, which pushes the demand for property.
Homes here are seeing appreciation in house prices, he said, “but they are still more affordable compared to other coastal states, and thereby attract first-time buyers and investors.”
Arizona
Arizona is a state where you’re almost guaranteed to see your home value increase, Cabrera said, though recent “explosive growth” might also mean that housing costs are getting more expensive.
He said cities like Phoenix and Tucson are growing rapidly because they have comparatively affordable living costs (to the rest of the U.S.) and excellent weather conditions along with a favorable business climate. The tech and manufacturing sectors are both in growth modes here, as well, and relative to neighboring states like California, Cabrera said, “Arizona offers more affordable entry points with great appreciation potential.”
North Carolina
North Carolina is another one to watch due to a “diverse economy,” Cabrera pointed out. In cities like Charlotte and Raleigh, banking, tech and manufacturing sectors are drawing more people to the state.
Another important factor is the quality of life in North Carolina, Cabrera said, “which combines retirees and young professionals — hence, pushing up the demand for housing with its relatively lower living costs and mild climate.”
Additionally, the state has offered equal opportunities to investors in metropolitan centers and upcoming suburban market settings, he said.
Tennessee
Tennessee may be known more for its music and tourism sectors in places like Nashville, but many parts of the state attract businesses and individuals alike with a low cost of living and friendly tax policies, Cabrera said.
Pennsylvania
Another state that might not be top of your radar for home value growth is Pennsylvania, according to Austin Glanzer, owner of 717 Home Buyers. He said that his market experience has shown communities in Lancaster, Greater Harrisburg and the surrounding areas increase tremendously in value since 2020.
These areas are showing great growth in business development and employment opportunities, he explained. “A steady job growth rate and higher wages than elsewhere in the state have helped keep Lancaster a desirable place to live in any economy.”
Many Pennsylvania areas are also seeing newly renovated properties, and Glanzer said “homeowners can expect to see the values of their properties to increase, particularly if they are willing to make material improvements to benefit future buyers.”
While these states might not have been on your radar yet for places to buy a home, you’ll want to take a closer look if equity building is your plan.
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