U.S. Cities With the Fastest-Rising Home Values – July 2025
David Garner
David Garner🏡 U.S. Cities With the Fastest-Rising Home Values – July 2025 Market Insights for Investors
While national home price growth continues to slow, a group of surprising markets in the Midwest and Northeast are breaking that trend. According to the latest housing data, home values in several smaller cities are rising by double digits, far outpacing the national average.
This trend presents clear opportunities for real estate investors—especially those targeting long-term equity growth or cash flow in overlooked markets.
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📊 Top 10 Cities With the Fastest Home Price Growth
| City | Price Growth | Median List Price |
|---|---|---|
| Decatur, IL | 12.4% | $149,900 |
| Weirton, WV | 12.0% | $150,000 |
| Duluth, MN | 11.9% | $327,000 |
| Glens Falls, NY | 10.6% | $369,900 |
| Muncie, IN | 10.6% | $165,000 |
| Parkersburg, WV | 10.5% | $170,000 |
| Charleston, WV | 10.4% | $187,450 |
| Bridgeport, CT | 10.2% | $327,000 |
| Lewiston, ID | 10.2% | $469,000 |
| Lewiston, ME | 10.1% | $360,000 |
Source: Realtor.com & Cotality May 2025 Report
🔍 What’s Driving These Markets?
Selma Hepp, Chief Economist at Cotality, explains:
“The Northeast and the Midwest are home to some of the hottest markets in the country.”
According to the report, these cities benefit from:
- Affordability compared to national and coastal markets
- Tight inventory that keeps prices elevated
- Continued demand from both locals and migrating buyers
Hannah Jones, senior research analyst at Realtor.com, adds:
“Affordable markets across the country continue to garner attention from home shoppers… increased demand has driven up competition and pushed home prices higher in these markets.”
📉 National vs. Local Price Growth
| Metric | Value | Source |
|---|---|---|
| National YoY Home Price Growth | +1.8% | Realtor.com |
| YoY Growth (May 2024) | +5.0% | Realtor.com |
| Trend | Slowest growth since winter 2012 | Realtor.com |
According to Hepp:
“While the national home price index continues to move up, the rate at which it’s climbing has slowed considerably.”
🧠 Investor Takeaways
- Focus on affordability-driven markets. These cities offer better rent-to-price ratios and long-term appreciation potential.
- Leverage DSCR or low-doc loans. Many of these markets qualify under non-traditional lending models for foreign and remote investors.
- Look for tight inventory and low supply. These conditions tend to protect against downside volatility.
- Buy before interest rate cuts take effect. Inventory may tighten even further once demand returns in late 2025 and 2026.
Previous Article: Green Shoots of Recovery for U.S. Housing Market?
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GROW YOUR WEALTH WITH U.S. REAL ESTATE
Start your US real estate investment journey today, and book a llamada estratégica gratuita 1:1 with a member of our senior management team.
“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
❓ FAQs
Why are home prices rising in these small cities?
Affordability, limited housing inventory, and increased remote migration are combining to push prices higher in smaller markets with historically stagnant growth.
Are these cities good for real estate investment?
Yes. Their price growth is outpacing the national average, and their lower entry prices offer strong ROI potential, especially for cash-flow strategies.
Will price growth continue through 2025?
Likely in these select markets. National growth has slowed, but regional demand and limited inventory will keep pressure on prices in specific metros.
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