Rank	Metro Area	Median Home Price Increase (YoY)	Median Home Price	Investor Focus
1	Jackson, MS	28.7%	$251,600	High Appreciation, Emerging Market
2	Peoria, IL	19.6%	$172,500	Strong Value, High Growth, Affordability
3	Chattanooga, TN	18.2%	$346,700	Growth, Southern Charm, Diverse Economy
4	Elmira, NY	17.6%	$167,800	Affordability, Steady Growth, Regional Hub
5	Fond du Lac, WI	17.6%	$263,800	Midwest Value, Stable Economy
6	Cleveland, OH	16.4%	$221,900	Urban Revitalization, Healthcare, Cash Flow
7	Bismarck, ND	15.8%	$312,200	Stable Economy, Energy Sector, Steady Demand
8	Akron, OH	15.5%	$209,600	High Affordability, Manufacturing, Education
9	Blacksburg, VA	15.0%	$311,900	University Town, Tech, Stable Market
10	Canton, OH	14.9%	$207,000	Affordable Entry, Diversifying Economy

1. Jackson, Mississippi

Topping the list with remarkable price growth, Jackson offers a unique opportunity for international investors seeking aggressive appreciation. I personally purchased my first ever U.S. investment properties in Jackson back in 2016. This surge is largely driven by its relative affordability attracting strong demand and a favourable tax environment, making it an appealing destination for new residents and investors alike.

2. Peoria, Illinois

Peoria, located in the heart of the Midwest, showcases strong growth fuelled by a renewed investor confidence and a modest resurgence in office space demand among smaller users. Its economic growth, coupled with a limited housing inventory, has led to significant price increases, making it a compelling market for value-driven international investors.

3. Chattanooga, Tennessee

Nestled in the scenic Appalachian Mountains, Chattanooga is gaining recognition for its vibrant economy driven by a mix of established industries and innovative startups, particularly in sustainability and technology. This economic vitality fuels strong demand and has contributed to its impressive price growth, appealing to international investors seeking appreciation in a dynamic Southern market.

4. Elmira, New York

Elmira’s significant price surge highlights the potential in smaller regional markets, particularly those offering strong affordability. The strong appreciation here is a result of consistent demand meeting a relatively limited supply, suggesting that value-seeking buyers are increasingly turning to more accessible markets like Elmira.

5. Fond du Lac, Wisconsin

Another Midwest standout, Fond du Lac combines affordability with impressive price appreciation. This market is benefiting from its stable local economy and increasing desirability, likely due to its quality of life and proximity to larger Wisconsin metropolitan areas, making it attractive for a steady influx of residents and investors.

6. Cleveland, Ohio

Cleveland continues its impressive resurgence, evidenced by robust price growth. This is driven by significant economic revitalization, particularly in world-class healthcare (Cleveland Clinic), a growing biomedical sector, and ongoing urban redevelopment projects. These factors attract an influx of younger professionals and a growing demand for rental housing, benefiting international investors focused on both appreciation and cash flow.

7. Bismarck, North Dakota

Bismarck’s consistent growth underscores its stable economy, heavily influenced by the energy sector and government employment. Its strong price appreciation signals a resilient market with steady demand, as it attracts residents seeking stable job opportunities and a high quality of life. International investors looking for stability and reliable growth can consider this market.

8. Akron, Ohio

Akron, known for its strong presence in polymer science, healthcare, and higher education, offers a highly affordable entry point into a market experiencing significant price appreciation. The city’s ongoing diversification and revitalization efforts are attracting new residents and jobs, creating a robust environment for both home values and rental demand, appealing to international investors seeking accessible growth.

9. Blacksburg, Virginia

As a vibrant university town (home to Virginia Tech), Blacksburg benefits from a consistent demand driven by inventory shortages, the needs of its large student population, and the significant economic impact of the university itself. Its strong price appreciation makes it attractive for international investors looking for stable capital gains in a market with a reliable tenant base tied to academia and a growing tech presence.

10. Canton, Ohio

Canton, home to the Pro Football Hall of Fame, rounds out the list with compelling price growth and an affordable median home price. Its economy is actively diversifying beyond traditional industries into growing healthcare and education sectors. This creates new job opportunities, attracting residents and driving housing demand, offering international investors accessible price points for both appreciation and reliable cash flow.

Navigating Hot Markets as an International Investor

Investing in a rapidly appreciating market from abroad demands a well-thought-out strategy. I’ve purchased over 120+ investment properties in the U.S. since 2016, and I’ve definitely learned a lot along the way:

1. Clearly Define Your Goals: Determine whether your primary aim is capital appreciation, consistent cash flow, or a blend of both. Hot markets often favour appreciation.
2. Investment Structure: How you set up your U.S. property investment will have huge implications for your U.S. tax obligation and personal liability protection. You can read my guide here.
3. Rigorous Due Diligence: Even in thriving markets, each property warrants thorough analysis. Don’t let market excitement overshadow detailed inspections and financial vetting.
4. Indispensable Local Expertise: Partner with a reliable local team. This includes a real estate agent experienced with international investors, a proactive property manager, a U.S. tax advisor, and a specialized mortgage broker. They are your essential eyes and ears on the ground.
5. Tailored Financing Solutions: Familiarize yourself with specialized Foreign National Mortgages, such as DSCR (Debt Service Coverage Ratio) loans or traditional foreign national options. These are designed for non-resident aliens and can be adapted to your investment property needs.
6. Understand Tax Implications: Be aware of U.S. tax regulations for foreign investors, including FIRPTA (Foreign Investment in Real Property Tax Act) and U.S. estate tax considerations. Proper legal and tax structuring from the outset is vital.

Conclusion

While some U.S. markets are currently experiencing a rebalancing as houses prices start to fall back towards a more reasonable level of affordability, the U.S. housing markets experiencing rapid growth in 2025 offer exciting potential for international investors seeking capital appreciation.

While these markets present unique challenges, they also provide opportunities for robust returns when approached with a clear strategy, thorough due diligence, and the support of an experienced local team. By understanding the dynamics of these hot spots and leveraging specialized financing, you can strategically position your U.S. real estate portfolio for success.

Frequently Asked Questions (FAQ) for International Investors

Q1: Are “hot” housing markets always the best investment for international investors?

A1: Not necessarily. “Hot” markets typically mean rapid price appreciation, which is great for capital gains. However, they often come with higher purchase prices, which can reduce your monthly rental income (cash flow). It depends on your investment strategy – whether you prioritize appreciation, cash flow, or a balance.

Q2: How do I finance a property in a competitive U.S. market as an international investor?

A2: As a non-resident alien, you’ll typically need a “Foreign National Mortgage.” Options include DSCR (Debt Service Coverage Ratio) loans, which qualify based on the property’s rental income, or traditional foreign national loans that assess your foreign income and assets. These differ from standard U.S. mortgages.

Q3: What are the biggest risks of investing in a rapidly appreciating market from abroad?

A3: Risks include:

• Overpaying: Intense competition can lead to emotional decisions.
• Market Correction: Rapid growth can sometimes be followed by a slowdown or correction.
• Management Challenges: Managing a property remotely in a fast-paced market requires an excellent local property management team.
• Liquidity Traps: If the market cools unexpectedly, selling quickly might be challenging.

Q4: Do I need to visit the U.S. to buy property in these hot markets?

A4: While not always strictly necessary, especially with a trusted local team, an initial visit can provide invaluable insight into the local market, neighbourhoods, and property conditions. Many international investors conduct virtual tours and rely on their U.S. partners for on-the-ground due diligence.

Q5: What kind of local team do I need to invest in a hot U.S. market?

A5: A robust local team is critical. It should include:

• A real estate agent experienced with foreign investors.
• A property manager who understands your investment goals.
• A U.S. tax advisor specializing in international taxation.
• A foreign national mortgage broker.
• A real estate attorney (recommended for closings).