Yahoo Finance 14 Metros Where You’ll Wish You Bought a Home In The Next Decade
Although the housing market is often spoken of in aggregate, the cost of living, variations, pricing and market performance can be very localized.
For example, according to data from Zillow, the anticipated one-year growth rate for home prices in the U.S. is 1.7%, with a median price of $395,220 expected by 2033. But in fast-growing markets like Columbia, Missouri, that anticipated rate is 6.4% — more than three times the national average.
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Figuring which cities will be the most attractive to purchase real estate over the coming decade, GOBankingRates looked at homes currently priced below the national median of $333,910 with anticipated growth rates of the projected 1.7% national rate.
We issued a caveat that home prices don’t move strictly linearly; however, the anticipated one-year growth rate was used primarily to identify housing markets that are moving in the right direction.
Cities fulfilling this criteria — with prices expected to exceed the national average at some point over the next data — are included here in the reverse order of their rankings.
Dover, Delaware
March 2023 Home Value: $327,620
1-Year Growth Projection: 2.1%
Year Projected Home Value Will Surpass the US Average: 2028
2028 Projected Home Value: $363,496
2033 Projected Home Value: $403,300
Homes in Dover are currently just a touch below the national average. But even though prices aren’t growing exceptionally fast, they are projected to break through the national average in just five years.
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Lakeland, Florida
March 2023 Home Value: $312,534
1-Year Growth Projection: 2.6%
Year Projected Home Value Will Surpass the US Average: 2031
2031 Projected Home Value: $383,775
2033 Projected Home Value: $403,991
You’ll have to wait eight years for homes in Lakeland to cross the national average. But you’ll pay more than $20,000 below the current national average if you buy now.
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Huntsville, Alabama
March 2023 Home Value: $286,064
1-Year Growth Projection: 3.9%
Year Projected Home Value Will Surpass the US Average: 2031
2031 Projected Home Value: $388,497
2033 Projected Home Value: $419,391
Homes in Huntsville are nearly $50,000 below the national average currently. But even with that massive deficit to make up, home prices are expected to cross the national average in just eight years.
Pensacola, Florida
March 2023 Home Value: $288,127
1-Year Growth Projection: 3.9%
Year Projected Home Value Will Surpass the US Average: 2030
2030 Projected Home Value: $376,610
2033 Projected Home Value: $422,415
Homes in Pensacola are among the cheapest on this list, but the sporty 3.9% growth projection will launch prices beyond the national average by 2030.
Albuquerque, New Mexico
March 2023 Home Value: $311,467
1-Year Growth Projection: 3.1%
Year Projected Home Value Will Surpass the US Average: 2029
2029 Projected Home Value: $374,080
2033 Projected Home Value: $422,668
Albuquerque home prices are expected to gain about $63,000 on average over the next six years, exceeding the national average.
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Yakima, Washington
March 2023 Home Value: $325,233
1-Year Growth Projection: 3.1%
Year Projected Home Value Will Surpass the US Average: 2025
2025 Projected Home Value: $345,710
2033 Projected Home Value: $441,348
Homes in Yakima may currently be below the national average, but you’ll want to act fast. Projections have prices exceeding the national average in just two short years.
Fayetteville, Arkansas
March 2023 Home Value: $311,752
1-Year Growth Projection: 3.8%
Year Projected Home Value Will Surpass the US Average: 2027
2027 Projected Home Value: $361,908
2033 Projected Home Value: $452,671
Fayetteville may get overlooked by its larger neighbors, but it’s a great option for those looking for affordable but appreciating homes. After projected home values exceed the national average in 2027, they could end up appreciating by over $140,000 in the next 10 years.
Daphne, Alabama
March 2023 Home Value: $328,632
1-Year Growth Projection: 3.3%
Year Projected Home Value Will Surpass the US Average: 2025
2025 Projected Home Value: $350,680
2033 Projected Home Value: $454,688
Homes in Daphne are the highest-priced on this list, just $5,000 or so below the national average. This shortens the time you’ll have to wait for prices to exceed the national average, projected to happen in just two years.
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Savannah, Georgia
March 2023 Home Value: $297,773
1-Year Growth Projection: 4.5%
Year Projected Home Value Will Surpass the US Average: 2028
2028 Projected Home Value: $371,080
2033 Projected Home Value: $462,433
Homes in Savannah are still priced low, but that’s projected to change rapidly. While prices are about $36,000 below the national average currently, they could be as much as $67,000 above the national average in 10 years.
Knoxville, Tennessee
March 2023 Home Value: $299,255
1-Year Growth Projection: 4.5%
Year Projected Home Value Will Surpass the US Average: 2028
2028 Projected Home Value: $372,926
2033 Projected Home Value: $464,734
Much like Savannah, homes in Knoxville are well below the national average now, but that will change in just five years. In 10 years, they could be more than 17% above the national average.
Panama City, Florida
March 2023 Home Value: $321,252
1-Year Growth Projection: 3.9%
Year Projected Home Value Will Surpass the US Average: 2025
2025 Projected Home Value: $346,798
2033 Projected Home Value: $470,979
Panama City is well known as a Spring Break destination, a gold mine for homebuyers. Prices are expected to break the national average in just two short years and could gain in value by about $150,000 in 10 years.
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Athens, Georgia
March 2023 Home Value: $319,124
1-Year Growth Projection: 4%
Year Projected Home Value Will Surpass the US Average: 2026
2026 Projected Home Value: $358,971
2033 Projected Home Value: $472,382
The projected 4% growth rate of Athens home prices will lift them above the national average. That could push prices up nearly 50% in 10 years.
Atlantic City, New Jersey
March 2023 Home Value: $325,013
1-Year Growth Projection: 4%
Year Projected Home Value Will Surpass the US Average: 2025
2025 Projected Home Value: $351,534
2033 Projected Home Value: $481,098
Homes in Atlantic City may be below the national average now, but they’re anticipated to be more than 20% above the national average by 2033.
Columbia, MO
March 2023 Home Value: $271,245
1-Year Growth Projection: 6.4%
Year Projected Home Value Will Surpass the US Average: 2028
2028 Projected Home Value: $369,888
2033 Projected Home Value: $504,403
Columbia has the fastest projected growth rate on this list, at 6.4%. This should push prices there above the national average in just five years.
Methodology: GOBankingRates took the overall U.S. median home value and projected its growth over 10 years using Zillow’s March 2023-24 one-year forecast. This projection was then compared to the projections of the 250 largest metros in the U.S. AND the metros in the top 250 that currently have home prices below the national median, with those rising above the national median in the next 10 years (plus its projected growth rate over the same period) being deemed “a place you’d wish you bought.” For each metro over the next decade, GOBankingRates found the following factors: (1) year the metro will become “affordable”; (2) projected home value for that year; and (3) US average projected home value for that year. 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 May 2, 2024.
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This article originally appeared on GOBankingRates.com: 14 Metros Where You’ll Wish You Bought a Home In The Next Decade
