10 Cities Where Home Prices Are Expected To Skyrocket in the Next 12 Months

If you’ve been thinking about buying property, whether for yourself or as an investment, you’ve likely seen the headlines about the housing market slowing down, which may give you reason to pause.

Nationally, Zillow expects home prices to drop about 2% in 2025 and another 1% by mid-2026. Zillow economists wrote in March, “The rise in [active] listings is fueling softer [home] price growth, as greater supply provides more options and more bargaining power for buyers,” reported Fast Company.

What this means is that with more homes on the market and higher mortgage rates, buyers have more negotiating power.

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But this is just the national profile. However, home values are climbing in local areas, according to Norada Real Estate Investments. In some smaller cities, prices are appreciating due to strong job markets, steady population growth and fewer homes for sale.

These factors are helping certain local pockets grow even while much of the rest of the country cools off.

If you’re looking for a place to buy now and watch values grow, these markets are expected to appreciate most in the next 12 months, according to Zillow, and might be worth a closer look.

Finally, after many years, tourism in Atlantic City (AC) is bouncing back, and the construction of casinos and hotel projects is bringing jobs and life back to the area. If you’re after a coastal investment without the sky-high price tag, a property in AC could be your golden goose investment before values climb.

As more people — especially boomers — leave New York City seeking more square footage, affordability, scenic views, and homes with backyards, Kingston, New York, a city nestled in the heart of Ulster County, at the base of the Catskill Mountains, is an attractive option in a city poised for growth.

Anchored by the University of Tennessee and a strong healthcare sector, Knoxville, Tennessee, has a robust job market that’s growing. The city is also a good investment for buyers looking for steady rental income with long-term appreciation to add to their retirement nest egg.

In this city, new housing and revitalization projects that include a railroad are giving the city an upgrade. Invest early, and you could see your property value grow alongside the community’s redevelopment.