Hurry if you’re thinking of buying a house: Home prices in these 10 cities are set to skyrocket next year
While the housing market is slowing in most US markets, there are some that could see potentially solid price gains in the coming 12 months.
The US housing market has been slowing faster than predicted at the beginning of the year. Zillow originally forecast that home prices would grow nationally by 2.6% by the end of 2025. However, that was downgraded to a negative 1.7% by April.
But the online real estate company and marketplace has adjusted its outlook once again. In its most recent analysis, Zillow predicts that over the next 12 months home prices will grow on average 0.4% nationally. There are some markets that will see prices rise at a much faster clip though.
10 US cities that will see housing prices skyrocket
Zillow is forecasting that the following 10 markets, among the 300 largest US metro areas, will see the biggest price increases through July 2026.
| US metro area | Forecast |
|---|---|
| Atlantic City, NJ | 4.3% |
| Torrington, CT | 4.1% |
| Saginaw, MI | 3.8% |
| Kingston, NY | 3.8% |
| Pottsville, PA | 3.8% |
| Rockford, IL | 3.6% |
| Concord, NH | 3.6% |
| Knoxville, TN | 3.4% |
| New Haven, CT | 3.4% |
| Norwich, CT | 3.4% |
Housing market continues to improve for buyers
Zillow stated in its July report on the US housing market that “buyers continue to gain leverage as affordability challenges keep competition low.” Potential homebuyers are being pushed to the sidelines by high home prices, with the typical US home value at $367,965, and economic uncertainty. There are now 27 US cities where conditions are favorable or neutral for homebuyers.
“Affordability and access is gradually improving where builders have been able to keep up with demand, showing why building more homes is so critical,” Zillow stated. “Metros where price corrections are steepest are among those with the largest increase in inventory compared to before the pandemic.”
This has been most noticeable in former hot spots for demand and soaring prices, Florida and Texas.
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