10 Cities Where Home Values Are Rising in 2025

10 Cities Where Home Values Are Rising in 2025 — 6 Are on the East Coast

Despite the fact that the growth in home values has slowed to a crawl all across the United States — year-over-year national home price growth was only 1.8% in May 2025, compared to the price growth of 5% in May 2024 — small eruptions of surging home value growth have taken place in 2025 throughout the Northeast and Midwest. Both regions have become “home to some of the hottest markets in the country,” as chief economist Selma Hepp of Cotality told Realtor.com.

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Why the Northeast and Midwest? It appears to be because these areas were rather affordable markets (compared to larger cities on either coastline) that attracted homebuyers from larger, more expensive regions. The problematic result of that flight to these regions is an ongoing demand for homes coupled with decreased inventory. The continued demand has forced the limited supply to surge in price.

As Hannah Jones, senior economic research analyst for Realtor.com, recently described it, “Increased demand has driven up competition and pushed home prices higher in these markets while other well-supplied, higher-priced markets have seen home prices level off or even fall. Home supply in the Midwest and Northeast continues to struggle to keep up with buyer demand, which has kept upward pressure on home prices.”

Or, as Corcoran broker Kirsten Jordan put it, “What we’re seeing is the flight to affordability and how growing demand in previously overlooked or stagnant markets is now pushing pricing upward.”

Where is that value increasing, specifically? Of the 10 cities where home values are rising the most, only West Virginia has more than one — with three separate appearances on the top 10 list. Elsewhere, not only does Illinois have the highest annual home price growth of any state (at 6.4%), its city of Decatur has the highest annual home price growth of any metropolitan area.

While these 10 cities remain the hottest home values on the rise in America, it remains to be seen whether they can maintain this price surge into the next year. For now, though, check out the 10 cities where home values are rising in 2025.