For many, purchasing a home is not just about having a place to live—it’s also a smart investment. As you pay down your mortgage, you build equity, and historically, home values tend to increase over time.
However, some locations offer a much higher return on investment than others. To find out where home values are rising the fastest, GOBankingRates analyzed Zillow data from 2019, 2023, and 2024, looking at both five-year and one-year percentage changes in home values across various U.S. cities.
How Home Values Have Changed Nationally
- 2019 Average U.S. Home Value: $228,565
- 2023 Average U.S. Home Value: $333,206
- 2024 Average U.S. Home Value (January): $343,951
- Five-Year Increase: 50%
- One-Year Increase: 3%
Now, let’s take a look at the top cities where home values have surged, making them some of the best places to invest in real estate.
Top U.S. Cities for Home Value Growth
Cities With the Highest Five-Year Growth
| City | 2019 Home Value | 2024 Home Value | 5-Year % Increase | 1-Year % Increase |
|---|---|---|---|---|
| Forest Park, GA | $82,985 | $177,414 | 114% | 5% |
| Atlantic City, NJ | $108,092 | $218,761 | 102% | 16% |
| Irvington, NJ | $178,726 | $359,441 | 101% | 10% |
| Waterbury, CT | $124,467 | $249,073 | 100% | 15% |
| Lewiston, ME | $143,963 | $274,687 | 91% | 14% |
Cities With Strong One-Year Growth
While long-term growth is crucial, some cities have experienced rapid appreciation within the past year, making them attractive for short-term investors.
| City | 2023 Home Value | 2024 Home Value | 1-Year % Increase |
|---|---|---|---|
| Atlantic City, NJ | $188,703 | $218,761 | 16% |
| Waterbury, CT | $217,365 | $249,073 | 15% |
| Lewiston, ME | $242,023 | $274,687 | 14% |
| Torrington, CT | $224,068 | $255,834 | 14% |
| Elizabeth, NJ | $434,543 | $498,548 | 15% |
Why These Cities?
Many of these cities offer affordable housing, growing job markets, and strong demand, which contribute to rising home values. Additionally, some are experiencing revitalization efforts or population growth, increasing their attractiveness to buyers and investors alike.
Should You Invest?
If you’re looking for a home that will appreciate in value, these cities are solid options based on recent trends. However, consider factors like local job markets, infrastructure development, and cost of living before making a purchase.
As home values continue to rise, real estate remains one of the best long-term investments—and choosing the right location can maximize your return.
