THE the housing market is expected to continue growing in 2024 and beyond. Zillow Now forecasts that the national housing value index will increase by 4.9% from August 2023 to 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 price declines.
This article will look at the 10 cities where real estate prices are expected to rise the most in 2024. These cities are all located in different regions of the United States and each has its own appeal. If you are considering buy a house in 2024, one of these cities may be a good place to start your search.
Housing market forecast for 2024
In September 2023, Smart asset analysis Zillow Dataclassifying the the 2,000 largest zip codes in the United States by projected increases in property prices. This study uncovers cities and their corresponding zip codes with optimistic projections of home values. According to Smart asset, such predictive models help potential buyers decide whether to buy now or wait until the winter months. It also provides sellers with valuable information for optimal listing timing.
Main findings
Miami and Knoxville: Growth Hotspots
Leading the pack, Rio Grande City, Texas (78582), predicts the largest increase in home value in 12.3%. The neighborhoods of Knoxville and Miami claim four spots in the top 10. Notably, the 37920 neighborhood of Knoxville could see a 9.5% growth, and the neighborhood 37918 a 8.3% increase. In North Miami, neighborhood 33161 anticipates a 8.8% growth, followed by 8.5% in the 33162 neighborhood of North Miami Beach.
The push from the South
Approximately 80% of the top 50 projected house price increases are concentrated in the South. This includes Winston-Salem, North Carolina (27105, 8.7%; 27107, 7.3%); Athens, Georgia (30605, 7.9%; 30606, 7.7%); Myrtle Beach, South Carolina (29588, 7.8%); Savannah, Georgia (31419, 7.8%); and Charlotte, North Carolina (28208, 7.5%).
New York’s emerging neighborhoods
In New York, Fort George (10,040), Jamaica (11,434) and Washington Heights (10,032) are expected to see the most substantial growth in home values, projecting a 7% or more increase by next summer.
In the big cities
Several neighborhoods in large cities are showing notable growth. In Chicago, neighborhood 60623 plans a 4.9% increase in home values by next summer. Meanwhile, the 85009 area of Phoenix expects a 6.9% growth, contrasting with San Francisco Area 94121projecting a simple 1.7% increase.
Notable increases in California
In San Diego, the Carmel Valley neighborhood (92130) is expected to experience 5.3% growth, representing an average price increase of $98,382 from the home’s current value of $1.85 million. Other areas of California with significant price increases 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 housing prices will increase in 2024
1. Rio Grande City, Texas: 78582
Home values are expected to increase by 12.3% in the 78582 area code, bringing the average price from $113,368 in July 2023 to a projected $127,312 in July 2024.
2. Knoxville, Tennessee: 37920
In Knoxville’s Kimberland Heights neighborhood, home values are expected to increase by 9.5% between this summer and next summer. This would bring the average house value up to $310,699, up from $283,744 currently.
3. North Miami, Florida: 33161
This area of Miami is expected to experience a 8.8% increase in home values by next summer, bringing the typical value of a home to $501,725, up from $461,145 this year.
4. Winston-Salem, North Carolina: 27105
Home values in Winston-Salem expected to rise 8.7%. That would bring the average home value to $163,269 by summer 2024, an increase of more than $13,000 from this summer.
5. Muskegon, Michigan: 49442
As of July 31, 2023, home prices in Muskegon’s 49442 neighborhood averaged $158,324. This amount is expected to reach $171,940 – a 8.6% increase – at the same time in 2024.
6. (Tie) North Miami Beach, FL: 33162
The average $443,856 home in 33162 could increase by almost $38,000 to $481,584 in just one year if the 8.5% the projection holds.
6. (Tie) Brownsville, Florida: 33142
The 33142 area in Brownsville is also expected to experience a 8.5% increase in home values. That would bring the average home to $407,316.
8. Lenoir, North Carolina: 28645
This summer, a home located in 28645 is valued at around $191,000 on average. But it is expected to increase by 8.4% over the next 12 months, with the average value climbing to $206,894.
9. Knoxville, TN: 37918
Homes in 37918 are expected to increase in value by 8.3%taking the average home from $304,881 to $330,186.
10. (Tie) Post Falls, ID: 83854
With a 8.2% With an increase in home values, homes in 83854 would go from an average of $483,973 to $523,659 in just over a year.
10. (tie) Donna, Texas: 78537
The houses in 78537 also have a projection 8.2% their value increases, but they are a little cheaper: going 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) within 2 Top 000 zip codes by size. The projections were as of July 31, 2023 for July 31, 2024 and were applied to the average home value in each zip code to obtain the projected average home value.
