U.S. News
10 Cities Where Home Prices Are Expected to Jump in the Next Year
By Jake Beardslee · August 19, 2025
10 Cities Where Home Prices Are Expected to Jump in the Next Year
The U.S. housing market has shown signs of cooling nationally, with economists projecting modest declines in average home values over the next 18 months. Zillow forecasts a roughly 2% drop in 2025 and an additional 1% decline by mid-2026, citing higher inventory and rising mortgage rates as factors giving buyers more leverage, according to Fast Company.Yet, not every city fits that trend. While many large metro areas see slower growth or price corrections, several smaller markets are positioned for gains. Strong local economies, limited housing supply, and demographic shifts are fueling appreciation in select regions. These places are bucking the national slowdown and may present opportunities for buyers and investors.
According to Zillow and Norada Real Estate Investments, here are 10 cities expected to see the sharpest price increases in the next 12 months. Blake Wheeler / Unsplash
Atlantic City, New Jersey
Projected price increase: 2.9%Tourism and development projects are reviving Atlantic City’s economy after years of stagnation. Casino and hotel construction is bringing new jobs and boosting demand for housing. With relatively affordable coastal real estate compared to other beach markets, Atlantic City offers investors a chance to buy before prices climb higher. Tim Emerich, CC0, via Wikimedia Commons
Kingston, New York
Projected price increase: 2.2%Located in Ulster County at the base of the Catskills, Kingston is drawing buyers leaving New York City in search of more space and affordability. Retirees and remote workers alike are fueling interest in the area’s historic homes and scenic landscapes, positioning Kingston as one of the region’s fastest-growing markets. Amy Lavine, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons
Knoxville, Tennessee
Projected price increase: 2%Anchored by the University of Tennessee and a thriving healthcare sector, Knoxville has a strong employment base. The city appeals to investors seeking steady rental demand and long-term appreciation. With affordability compared to other Southern metros, Knoxville remains a stable market for buyers planning ahead. Brian Stansberry, CC BY 3.0 https://creativecommons.org/licenses/by/3.0, via Wikimedia Commons
Torrington, Connecticut
Projected price increase: 1.9%Revitalization efforts, including new housing projects and rail upgrades, are reshaping Torrington. Investors who purchase early could benefit as redevelopment brings more residents and raises property values. The city’s affordability relative to coastal Connecticut also makes it attractive to buyers. Gwenythe b. Harvey, Public domain, via Wikimedia Commons
Rockford, Illinois
Projected price increase: 1.7%Situated near Chicago, Rockford provides access to a major metro area while offering far lower home prices. This affordability, combined with proximity to urban job centers, makes Rockford appealing to first-time buyers and investors seeking entry-level opportunities. Alexbaumgarner, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons
Concord, New Hampshire
Projected price increase: 1.7%Just an hour from Boston, Concord combines small-city living with accessibility to a larger job market. As New Hampshire’s capital, it benefits from steady government employment while also experiencing growth in housing demand. Rising values reflect both its convenience and quality of life. AlexiusHoratius, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons
Pottsville, Pennsylvania
Projected price increase: 1.7%Pottsville offers affordable housing, low taxes on Social Security income, and access to healthcare facilities, making it an appealing choice for retirees and investors. Although the city struggles with limited employment opportunities and mixed safety scores, property values are still projected to grow in the coming year. Tc65306n, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons
Fayetteville, Arkansas
Projected price increase: 1.6%Home to the University of Arkansas and a growing technology sector, Fayetteville continues to attract both students and professionals. Rental demand is consistently strong, offering investors steady returns. The city’s blend of affordability and economic growth supports its forecast for price appreciation. Brandonrush, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons
Norwich, Connecticut
Projected price increase: 1.6%Known as the “Rose of New England,” Norwich offers scenic rivers, historic architecture, and more space for less money compared to Connecticut’s coastal markets. With casinos and entertainment venues nearby, the city has steady demand and remains a worthwhile investment for buyers looking outside larger metros. John Phelan, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons
East Stroudsburg, Pennsylvania
Projected price increase: 1.5%Located in the Pocono Mountains just 75 miles from New York City, East Stroudsburg attracts students, vacationers, and commuters. Pennsylvania’s tax advantages for retirees add to its appeal. Properties here are expected to generate both seasonal rental income and long-term appreciation. Doug Kerr, CC BY-SA 2.0 https://creativecommons.org/licenses/by-sa/2.0, via Wikimedia Commons
