Housing markets poised for significant value growth dot the landscape all around the United States, creating an avenue for fix-and-flip investors to make notable profits.
Prospective investors ignorant of the cues to look for will only see red flags in every section of the housing market. Real estate investments saw a significant supply chain impact and decline in profitability after the COVID-19 lockdown.
So, if you’re in that lot looking for profitable real estate trends, hold tight as we point out markets with potential property value increases. Whether real estate investment is a side hustle or your full-time engagement, it does not matter.
U.S. Housing Markets With High Potential of Growth in 2025
GoBankingRates recently published a study on real estate trends between 2023 and 2024. The market analysis shows a year-on-year increase in property value between those two years. Analysts suggest this is a strong indicator that the U.S. housing market will experience notable growth in 2025.
Now, any realtor will know such projections about the home buyers market are vague. Housing markets across the United States do not respond to economic growth at the same rate. Even when interest rates on home loans are high and affordability high, real estate in some locations is notorious financial landmines.
So, according to the GoBankRates study, we shall list out the five top locations in the US with housing markets poised for significant value growth before the end of 2025:
1. Rockford, Illinois
The home value in Rockford went up by an average of $19,194 between August 2023 and August 2024. Comparing this to the 2023 average home value ($176,319) in that location, flipping a house there will yield a minimum return of 10.89%.
2. Syracuse, New York
In August 2023, the average home value in Syracuse was $215,523. By August 2024, that value had climbed by 10.75%.
3. San Jose, California
The average home value in San Jose was over a million dollars in 2023, precisely $1,411,722. This figure rose by 10.71% precisely a year later.
4. Hartford, Connecticut
The average home value in Hartford stood at $333,625 in 2023. Post-pandemic supply chain impact caused a 9.43% spike in this figure.
5. Binghamton, New York
The 2023 average home price in Binghamton was $169,455, one of the highest on the affordability scale, a double leverage. Inflation and fluctuation of national financial metrics like interest rates caused this value to jump by 9.19% in 2024.
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Strategies that Ensure Success in House-Flipping Investments
Despite the post-COVID decline in real estate, analysts brandish markers of housing markets poised for significant value growth. So, we have cues for full-time real estate professionals and part-time brokers scouting the housing market for investment opportunities. Besides, in a recent market analysis report, ATTOM shared that home flipping activities saw a dip towards the end of 2024.
However, the profit of the few remaining house flips climbed to an average of $73,500, and that is on a single transaction. That’s someone’s annual income!
Before you get too excited, there is a roadmap to follow if you are to emerge as one of the profit-making home flippers in 2025. Housing demand is not likely to decline soon, and there is a high likelihood of property value increases across the US.
The influx of part-time investors into the home-flipping market has the potential to drive economic growth and urban development. Now, here are strategies to deploy if you want to be successful in home flipping:
1. Identify the Right Location
Earlier, we listed prime locations where housing markets are poised for significant value growth. The property’s location was prioritized because it is the most critical factor in a house flipping investment. As a professional house flipper, you want to look for cities and neighborhoods with high housing demand.
Not just that, people in such areas should cozy up to the idea of buying renovated homes. In addition, it is essential to have a good network of experts wherever you plan to flip a property. Credible contractors, realtors, and local professionals will serve as your consultant team when the terrain seems unfamiliar.
Whatever location you eventually settle for, areas with a teeming buyers’ market should be the priority. When there’s a standing demand for your commodity, getting around to selling it should not be a challenge.
2. Research Economic Conditions
Always do some preliminary research about an area’s economic condition before buying properties there to flip. Just because an area is metropolitan does not necessarily make it a good bet for investment opportunities or property value increases.
For example, consider the likely future outcomes if a neighboring town or community near where you’re prospecting is experiencing rapid urban development and construction rates. Residents in the community you’re prospecting may initiate demographic shifts if they find the cost of living way cheaper elsewhere.
So, before buying a rundown property with the intent of flipping it, check the economic conditions in that district and its locale. When assessing economic conditions, consider construction rates and the potential for job market expansion.
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3. Make Sure the Business Has a Positive Social Impact
Things seldom turn out fine when you flip a property and operate the business in a disconnected manner. Being present during community events and supporting local vendors develops a cordial relationship between you and entities domiciled where you have businesses.
In fact, in communities where professional flippers have built credibility, the locals may be instrumental in nailing some of their best deals. They inform you of impending demographic shifts and help you brace up for supply chain impact.
The U.S. Housing market can be a profitable place to do business. It all boils down to knowing where to look for housing markets poised for significant value growth.