U.S. Cities With the Fastest-Rising Home Values – July 2025

Q: Why are home prices rising in these small cities?

Affordability, limited inventory, and increased migration are pushing home values up in these overlooked markets.

Q: Are these cities good for real estate investment?

Yes. Their faster-than-average growth and affordability make them attractive for rental or buy-and-hold strategies.

Q: Will price growth continue through 2025?

In these markets, yes. Demand remains strong and inventory low, which supports continued growth even as national trends cool.

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Publicado em: julho 10th, 2025

🏡 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

**Top U.S. Cities for Home Price Growth – May 2025 (YoY)**
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.”

Source: Realtor.com Research

📉 National vs. Local Price Growth

**National Housing Market Snapshot – May 2025**
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 Agende uma conversa estratégica gratuita e individua with a member of our senior management team.

SCHEDULE A FREE STRATEGY CALL

“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.

David Garner General Manager

U.S. Real Estate Turnkey Rental Property Mortgages for Non-Residents and Foreign Nationals

David Garner has over 120+ personal property acquisitions in the U.S. real estate market as a Non-Resident Alien Foreign National, bringing extensive practical experience to his insights on the U.S. real estate market. He specializes in guiding international investors through the complexities of the U.S. real estate market, focusing on building wealth through profitable rental property investments. His deep understanding of the market, combined with his client-centric approach, makes him a trusted advisor for global investors seeking to establish and grow their U.S. real estate portfolio. Learn more about David