Given the overall costliness of American housing in the last five years, it makes sense to treat a home purchase like an investment. In order to do so, you need to know where homes are most likely to appreciate in value.
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To that end, GOBankingRates recently determined the 25 cities where homes are most expected to increase in price, based on their gains in value over the last five years. GOBankingRates analyzed the largest 2,500 housing markets in America, cross-referencing such information as population density, median household income and, of course, strong increases in average home values.
From that matrix, GOBankingRates was able to determine 25 cities where you should buy a home this year if you would like it to gain in value — ranked in ascending order below.
25. Union City, New Jersey
- Average home value: $685,634
- 1-year change in home value: $61,608
- 5-year change in home value: $159,421
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24. Lakewood, New Jersey
- Average home value: $735,700
- 1-year change in home value: $45,050
- 5-year change in home value: $363,668
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23. Northbrook, Illinois
- Average home value: $784,842
- 1-year change in home value: $55,814
- 5-year change in home value: $238,609
22. East Northport, New York
- Average home value: $768,536
- 1-year change in home value: $54,605
- 5-year change in home value: $262,980
21. Bellevue, Washington
- Average home value: $1,686,433
- 1-year change in home value: $28,827
- 5-year change in home value: $604,209
20. Campbell, California
- Average home value: $1,938,500
- 1-year change in home value: $30,133
- 5-year change in home value: $615,008
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19. Manhattan Beach, California
- Average home value: $3,126,767
- 1-year change in home value: $19,938
- 5-year change in home value: $792,563
18. Wilmette, Illinois
- Average home value: $1,003,667
- 1-year change in home value: $65,189
- 5-year change in home value: $304,114
17. Laguna Niguel, California
- Average home value: $1,651,220
- 1-year change in home value: $31,665
- 5-year change in home value: $716,850
16. New Rochelle, New York
- Average home value: $1,006,718
- 1-year change in home value: $64,924
- 5-year change in home value: $332,754
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15. Park City, Utah
- Average home value: $1,943,892
- 1-year change in home value: $28,277
- 5-year change in home value: $812,624
14. McLean, Virginia
- Average home value: $1,684,392
- 1-year change in home value: $57,390
- 5-year change in home value: $463,260
13. San Carlos, California
- Average home value: $2,424,485
- 1-year change in home value: $56,958
- 5-year change in home value: $502,662
12. Wellesley, Massachusetts
- Average home value: $2,034,337
- 1-year change in home value: $44,940
- 5-year change in home value: $665,429
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11. Ridgewood, New Jersey
- Average home value: $1,187,517
- 1-year change in home value: $68,283
- 5-year change in home value: $398,017
10. Dana Point, California
- Average home value: $1,848,889
- 1-year change in home value: $38,844
- 5-year change in home value: $756,842
9. Irvine, California
- Average home value: $1,832,070
- 1-year change in home value: $42,878
- 5-year change in home value: $820,142
8. Cupertino, California
- Average home value: $3,110,628
- 1-year change in home value: $32,975
- 5-year change in home value: $983,554
Read More: 10 Affordable Housing Markets Where You’ll Still Need $50K To Buy a Home
7. Burlingame, California
- Average home value: $2,739,298
- 1-year change in home value: $89,364
- 5-year change in home value: $463,229
6. Menlo Park, California
- Average home value: $2,891,260
- 1-year change in home value: $120,262
- 5-year change in home value: $474,071
5. Great Neck, New York
- Average home value: $1,596,292
- 1-year change in home value: $132,894
- 5-year change in home value: $461,836
The average home value in Great Neck is about $1.6 million. In 2020, that average home value was $1,134,456; that’s a gain of 40.7%.
4. Saratoga, California
- Average home value: $3,948,216
- 1-year change in home value: $59,519
- 5-year change in home value: $1,356,514
3. Los Altos, California
- Average home value: $4,431,730
- 1-year change in home value: $79,468
- 5-year change in home value: $1,261,200
You can expect that the average home value of Los Altos will keep growing; they’ve steadily risen by about 40% in the last half-decade.
2. Greenwich, Connecticut
- Average home value: $2,464,162
- 1-year change in home value: $125,359
- 5-year change in home value: $937,687
1. Newport Beach, California
- Average home value: $4,067,554
- 1-year change in home value: $128,750
- 5-year change in home value: $1,695,723
Editor’s note: Photos are for representational purposes only and might not reflect the exact locations listed.
Methodology: GOBankingRates identified the 2,500 largest housing markets, according to Zillow Home Value Index. The average home value was sourced from September of 2020, 2021, 2022, 2023, 2024 and 2025. Any places without data or with a total population below 1,000 were removed for this study. The one-year and five-year change in home values was calculated for each location. Places with a higher one-year change and five-year change than the national average were kept and the changes were scored and summed, with the lowest score being first. All data was collected on Oct. 27, 2025.
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This article originally appeared on GOBankingRates.com: 25 Places To Buy a Home This Year If You Want It To Gain Value
