The housing market is expected to continue to grow in 2024 and beyond. Zillow now forecasts that the national Home Value Index will rise by 4.9% from August 2023 through August 2024. However, not all cities will experience the same level of growth. Some cities are poised to see significant price increases, while others may see more modest growth or even a decline in prices.
This article will look at the 10 cities where housing prices are expected to grow the most in 2024. These cities are all located in different parts of the United States, and each has its own unique appeal. If you are considering buying a home in 2024, one of these cities may be a good place to start your search.
Housing Market Predictions for 2024
In September 2023, SmartAsset analyzed Zillow data, ranking the largest 2,000 U.S. zip codes by projected home price increases. This study unveils cities and their corresponding zip codes with optimistic home value projections. According to SmartAsset, such predictive models assist potential buyers in deciding whether to purchase now or wait for the winter months. It also provides sellers valuable insights for optimal listing timing.
Miami and Knoxville: Hotspots for Growth
Leading the pack, Rio Grande City, TX (78582), projects the highest home value increase at 12.3%. Knoxville and Miami neighborhoods claim four spots in the top 10. Notably, Knoxville's 37920 neighborhood may see a 9.5% growth, and the 37918 neighborhood an 8.3% increase. In North Miami, the 33161 neighborhood anticipates an 8.8% growth, followed by 8.5% in the 33162 neighborhood of North Miami Beach.
The Southern Surge
Approximately 80% of the top 50 projected home price increases are concentrated in the South. This includes Winston-Salem, NC (27105, 8.7%; 27107, 7.3%); Athens, GA (30605, 7.9%; 30606, 7.7%); Myrtle Beach, SC (29588, 7.8%); Savannah, GA (31419, 7.8%); and Charlotte, NC (28208, 7.5%).
NYC's Rising Neighborhoods
In New York City, Fort George (10040), Jamaica (11434), and Washington Heights (10032) are set to witness the most substantial growth in home values, projecting a 7% or more increase by next summer.
Across Major Cities
Several neighborhoods in major cities exhibit noteworthy growth. In Chicago, the 60623 neighborhood foresees a 4.9% increase in home values by next summer. Meanwhile, Phoenix's 85009 area expects a 6.9% growth, contrasting with San Francisco's 94121 area, projecting a mere 1.7% increase.
Noteworthy Increases in California
In San Diego, the Carmel Valley neighborhood (92130) is expected to experience a 5.3% growth, amounting to a $98,382 average price increase on the current $1.85 million home value. Other areas in California with significant price hikes include 90275 in Rancho Palos Verdes ($92,403), 92024 in Encinitas ($80,541), 92705 in North Tustin ($77,510), and 93117 in Goleta ($75,213).
Top 10 Cities Where Home Prices Will Rise in 2024
1. Rio Grande City, TX: 78582
Home values are expected to increase by 12.3% within the 78582 area code, bringing the average price from $113,368 in July 2023 to a projected $127,312 in July 2024.
2. Knoxville, TN: 37920
In the Kimberland Heights section of Knoxville, home values are expected to increase by 9.5% between this summer and next summer. This would bring the average home value up to $310,699, from the current $283,744.
3. North Miami, FL: 33161
This area of Miami is projected to see an 8.8% increase in home values by next summer, bringing the typical home value up to $501,725 from $461,145 this year.
4. Winston-Salem, NC: 27105
Home values in Winston-Salem are forecast to climb 8.7%. That would make the average home value $163,269 by summer 2024, or more than a $13,000 increase from this summer.
5. Muskegon, MI: 49442
As of July 31, 2023, home prices in the 49442 area of Muskegon averaged $158,324. This is projected to grow to $171,940 – an 8.6% increase – by the same time in 2024.
6. (Tie) North Miami Beach, FL: 33162
The average $443,856 home in 33162 could increase almost $38,000 to $481,584 in just one year if the 8.5% projection holds.
6. (Tie) Brownsville, FL: 33142
The 33142 area in Brownsville is also projected to undergo a 8.5% increase in home values. That would bring the average home to $407,316.
8. Lenoir, NC: 28645
This summer, a home in 28645 is valued at about $191,000 on average. But, it is projected to increase by 8.4% in the next 12 months, with the average value jumping to $206,894.
9. Knoxville, TN: 37918
Homes in 37918 are forecast to increase in value by 8.3%, taking the average home from $304,881 to $330,186.
10. (Tie) Post Falls, ID: 83854
With an 8.2% increase in home values, homes in 83854 would go up from an average of $483,973 to $523,659 in just over one year.
10. (Tie) Donna, TX: 78537
Homes in 78537 also have a projected 8.2% increase in value, but they are a little cheaper: Jumping from $128,844 to $139,409 over the next 12 months.
Data and Methodology: Cities were ranked based on the largest 12-month home value forecast using Zillow’s Home Value Forecast (ZHVF) metric for all homes (single-family residences, condos, and co-ops) in the top 2,000 zip codes by size. Projections were as of July 31, 2023, for July 31, 2024, and were applied to the average home value in each zip code to derive the projected average home value.