Since investing in real estate is considered a path to wealth, one of the things prospective homebuyers look for when shopping for properties is a community where homes will appreciate in value. Before choosing a place to live, homebuyers often will work with their real estate agent to find out the average home value in the area or do their own internet sleuthing.
After all, new homeowners want to move in knowing that equity is growing and confident they’ve made an incredible purchase.
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But what are the best cities to buy a home to achieve financial growth in the investment? GOBankingRates did the research for you, analyzing data from Zillow using the Zillow Median List Prices and the Zillow Home Value Index for Single Family Homes. The 2023 average home value was subtracted from each city’s median list price. GOBankingRates then ranked the top 20 cities in terms of the largest difference between the value and list price. Those looking to find a new home might want to look in one of these 20 cities for a potential great investment.
Cape Coral, Florida
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2023 median list price: $169,989
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2023 average home value: $419,840
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Difference between list price and home value: $249,851
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Eau Claire, Wisconsin
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2023 median list price: $178,089
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2023 average home value: $288,964
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Difference between list price and home value: $110,875
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Urban Honolulu, Hawaii
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2023 median list price: $984,436
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2023 average home value: $1,057,256
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Difference between list price and home value: $72,819
Punta Gorda, Florida
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2023 median list price: $318,481
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2023 average home value: $378,501
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Difference between list price and home value: $60,020
San Francisco, California
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2023 median list price: $1,136,056
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2023 average home value: $1,189,841
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Difference between list price and home value: $53,785
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Milwaukee, Wisconsin
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2023 median list price: $286,044
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2023 average home value: $334,836
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Difference between list price and home value: $48,791
Macon, Georgia
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2023 median list price: $123,167
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2023 average home value: $171,606
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Difference between list price and home value: $48,439
Cedar Rapids, Iowa
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2023 median list price: $177,746
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2023 average home value: $225,839
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Difference between list price and home value: $48,093
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Baltimore, Maryland
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2023 median list price: $328,544
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2023 average home value: $374,024
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Difference between list price and home value: $45,480
Philadelphia, Pennsylvania
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2023 median list price: $302,803
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2023 average home value: $344,873
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Difference between list price and home value: $42,071
Lake Havasu City, Arizona
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2023 median list price: $320,231
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2023 average home value: $361,620
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Difference between list price and home value: $41,389
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Rochester, New York
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2023 median list price: $191,600
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2023 average home value: $230,830
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Difference between list price and home value: $39,230
Asheville, North Carolina
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2023 median list price: $380,239
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2023 average home value: $415,625
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Difference between list price and home value: $35,386
Buffalo, New York
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2023 median list price: $213,783
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2023 average home value: $247,822
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Difference between list price and home value: $34,039
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Racine, Wisconsin
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2023 median list price: $228,853
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2023 average home value: $262,844
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Difference between list price and home value: $33,991
St. Louis, Missouri
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2023 median list price: $210,528
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2023 average home value: $243,391
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Difference between list price and home value: $32,864
Muskegon, Michigan
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2023 median list price: $180,644
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2023 average home value: $211,526
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Difference between list price and home value: $30,882
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Detroit, Michigan
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2023 median list price: $211,200
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2023 average home value: $241,852
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Difference between list price and home value: $30,652
Harrisburg, Pennsylvania
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2023 median list price: $236,172
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2023 average home value: $266,254
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Difference between list price and home value: $30,082
Akron, Ohio
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2023 median list price: $177,300
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2023 average home value: $205,482
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Difference between list price and home value: $28,182
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Whether you’re looking for a new home to live in for the next several years or an investment property to bring in some extra income, these cities are a great place to start.
To find the Metro areas with the most underpriced homes, GOBankingRates analyzed data from Zillow using the Zillow Median List Prices and the Zillow Home Value Index for Single Family Homes. GOBankingRates found (1) the 2023 average median listing price and (2) the 2023 average home values. Then, GOBankingRates calculated the difference, sorted by the largest differences, and kept the top results. All data is up-to-date as of August 8, 2023.
Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.
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This article originally appeared on GOBankingRates.com: These Are the 20 Most Underpriced Housing Markets in the U.S.
