A new GoBankingRates report identified American cities in which the average home value would rise above the national median — at the moment, $231,000 and growing by 2.8 percent per year.
While the economy and market fluctuations could change the outlook in the future, a clear picture is emerging. By 2025, it’s not just San Francisco, New York and San Jose that will have home prices disproportionate with the rest of the country and the average worker’s salary. The spikes are set to occur in Florida, the Midwest and Texas.
“While the idea of affordable housing in an urban center isn’t implausible for plenty of Americans living in the Midwest and South, that’s also rapidly changing in some areas,” reads the report.
Here are the top American cities that are likely to become unaffordable in less than five years:Charlotte, North Carolina
The largest city in North Carolina, Charlotte has been seeing rapid job growth and large numbers of people moving to its center for economic opportunities. As housing supply has struggled to meet the increased demand, prices are only expected to rise in the coming years and decades.
“Joining Concord, Charlotte is also seeing housing prices on the rise,” the report states. “However, this North Carolina city has a lot less time than its suburb before becoming unaffordable.”When: 2020 2019 home value: $230,300 Projected 2020 home value: $239,780.42 One-year projected growth rate: 4.12 percent Spokane, Washington
Four hours east of Seattle, Spokane is a small mountain city known for its outdoor lifestyle. Like many towns in Washington state, it’s seen housing values rise rapidly over the past decade even if, not being within easy driving distance of Seattle, it was not part of the Amazon boom that drew hordes of tech workers to western Washington.
“This Washington city represents one of the few places in the study that are outside of the South,” reads the report. “It’s remote relative to the other cities on the list — Spokane, with a population of about 45,000, is the only featured city near the Pacific coast.”When: 2020 2019 home value: $221,600 Projected 2020 home value: $238,336.99 One-year projected growth rate: 7.57 percent St. Petersburg, Florida
While St. Petersburg, Florida has long been a popular vacation destination, its strong job market attracts residents from other parts of Florida. GoBankingRates predicts home values in the city will grow by 5.09 percent in the next year alone.
“Sitting just south of Clearwater, St. Petersburg offers warm weather and a great location on Florida’s Gulf Coast and the Tampa Bay,” reads the report.When: 2020 2019 home value: $226,800 Projected 2020 home value: $238,336.99 One-year projected growth rate: 5.09 percent Irving, Texas
Unlike major Texas metropolises like Fort Worth, Dallas and Austin, Irving has been considered a more affordable place to live — a fact that, due to the jobs created by its proximity to the Dallas-Fort Worth airport, is likely to change for the worse in the coming years.
“Irving is one of four Texas cities that are on their way to losing affordability,” reads the report. “It has a population of just under 60,000 and sits directly adjacent to the Dallas-Fort Worth International Airport, completing the triangle of cities clustered between Fort Worth and Dallas with rapidly rising home values.”When: 2021 2019 home value: $223,700 Projected 2021 home value: $246,457 One-year projected growth rate: 4.96 percent Port St. Lucie, Florida
Nestled along the coast in between Orlando and Miami, Port St. Lucie is a sleepy city known for its beaches. Over the last few years, it has been gaining attention as a vacation destination — and, as a result, attracting more permanent homebuyers and snowbirds alike.
“Between the ocean and nearby Lake Okeechobee, those spiking home values could be a result of water sports fans flocking to this affordable option for freshwater and saltwater activities alike,” reads the report.When: 2021 2019 home value: $227,400 Projected 2021 home value: $246,261.12 One-year projected growth rate: 4.06 percent Lawrenceville, Georgia
Considered a suburb 30 miles outside of Atlanta, Lawrenceville has home values that are below the national median. GoBankingRates predicts that this will change in no small part due to the jobs created by the local economy and airport.
“With a population approaching 45,000, this Atlanta suburb is home to the Gwinnett County Airport,” reads the report.When: 2021 2019 home value: $225,100 Projected 2021 home value: $245,205.51 One-year projected growth rate: 4.37 percent Rochester, Minnesota
Located 90 miles outside of Minneapolis, Minnesota’s Rochester regularly makes lists of the best places to live in the country — it’s small, has a strong job market and developed infrastructure.
“However, the town has a major claim to fame: it’s home to the legendary Mayo Clinic,” reads the report.When: 2021 2019 home value: $228,500 Projected 2021 home value: $244,466.11 One-year projected growth rate: 3.43 percent Grand Prairie, Texas
Another city within the Dallas-Fort Worth area, Grand Prairie ha been seeing its home prices rise as Texas lures in newcomers from all over due to its current job boom.
“The Dallas-Fort Worth area is clearly seeing home prices on the rise,” reads the report.When: 2023 2019 home value: $214,900 Projected 2023 home value: $263,209.76 One-year projected growth rate: 5.2 percent Kissimmee, Florida
Considered a suburb of the larger Orlando, Kissimmee is a popular Airbnb choice for Disney World visitors looking to save some money — this location is a major reason for the housing boom expected to take place in the next five years.
“Since Kissimmee sits just south of Orlando, residents can likely expect the local economy to benefit from Disney World,” reads the report.When: 2023 2019 home value: $221,300 Projected 2023 home value: $258,388.64 One-year projected growth rate: 3.95 percent
Source: click here