2024 Housing Market Projections: Where Prices Could Grow Most

Amid interest rate volatility over the last few years, the housing market "locked in" some homeowners with historically low rates, while pricing out others. Even though no one can predict the future, it is possible to forecast the trajectories of housing markets at the local level using relevant data. Such models can help inform potential homeowners if they should buy or wait during the quieter winter months, and inform sellers when to list their home. 

With this in mind, SmartAsset used Zillow data to rank the largest 2,000 zip codes by the highest projected home price increases.

Key Findings

  • Miami and Knoxville homes have the most promise. While Rio Grande City, TX (78582) has the highest projected home value increase at 12.3%, Knoxville and Miami neighborhoods claim four of the top 10 spots. In Knoxville, home values may grow by 9.5% in the 37920 neighborhood, and 8.3% in the 37918. Home values in the 33161 neighborhood in North Miami are projected to grow 8.8% by summer 2024, and by 8.5% in the 33162 neighborhood of North Miami Beach.
  • About 80% of the top 50 projected home price increases are 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%).
  • These NYC neighborhoods are projected to grow by 7% or more by next summer. Fort George (10040), Jamaica (11434) and Washington Heights (10032) are poised to have the highest growing home values in all of New York City. 
  • These neighborhoods have the highest projected home value growth in these major cities. In Chicago, the 60623 neighborhood is projected to see home values grow 4.9% by next summer. In Phoenix, the 85009 area is projected to see a home value growth of 6.9% by the same time next year. But, in San Francisco, the 94121 area is projected to see 1.7% growth. Some of the lowest home value growth projections are in San Francisco.
  • Home prices are projected to grow by $100,000 in this San Diego neighborhood. In Carmel Valley – 92130 – the projected 5.3% growth on the current $1.85 million home value would lead to a $98,382 average price increase. Other CA places with largest 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 Projected Home Value Increases

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 up.

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 by the largest 12-month home value forecast from Zillow's Home Value Forecast (ZHVF) metric for all homes (single-family residence, condos, and co-ops) in the top 2,000 zip codes by size. Value change projections are as of July 31, 2023, for July 31, 2024. Projections were applied to the average home value in each zip code to get the projected average home value.

Housing Tips

  • Consider the benefits of renting. If you're thinking of buying a home, renting may actually be the better financial option. SmartAsset's rent vs. buy calculator can help you compare the costs of renting vs. buying in a particular area so you can make an informed financial decision. The tool will tell you how many years you'll need to live in your home to make buying the preferred choice.
  • Shop around for interest rates. If you choose to buy, SmartAsset's mortgage rate comparison tool shows you the rates currently being offered for both 15- and 30-year fixed rate mortgages, as well as different kinds of adjustable rate mortgages. Be sure to shop around for the best possible rate and do your due diligence before picking a lender.
  • Talk with an advisor. A financial advisor can help you set a budget, save for a down payment and ensure your home purchase aligns with your overall financial plan. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you.

Photo credit: ©iStock/Rasi Bhadramani

The post 2024 Housing Market Projections: Where Prices Could Grow Most appeared first on SmartReads by SmartAsset.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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