Homeownership provides buyers with equity and a long-term investment that could have a great payoff when it comes time to sell, as long as they’re buying in an area where the homes’ value will grow. To identify the areas where home values have increased the most and offer stability, SmartAsset compared data for 358 metropolitan areas from 1996 through 2020. Three of the best areas for growth and stability can be found in Texas, whereas Michigan has four metros in the bottom five. The West Coast posted the highest home price increases during the last 25 years, and two areas made the top 20 list for growth and stability.
Top Five Housing Markets for Growth and Stability
1. Midland, TX
For the second year in a row, Midland, Texas is the top U.S. metro area for growth and stability in the housing market. Home prices increased nearly 257% from 1996 through the end of 2020 – 10th-best among all 358 metro areas in our study. Meanwhile, there was a 0% chance that a home would suffer a 5% drop in price within 10 years of being purchased.
2. Austin-Round Rock-Georgetown, TX
Greater Austin, Texas is also recognized as one of the top growing and stable housing markets in the country. The Austin-Round Rock-Georgetown metro area saw home prices rise nearly 256% between 1996 and 2020, ranking 11th-highest for growth in our study. The housing market was also consistently stable, with a 0% chance of a 5% drop in home price during the time period of our study.
3. Boulder, CO
Boulder, Colorado claims the No. 3 spot in our rankings for the second year in a row. Situated in the foothills of the Rocky Mountains, the Boulder area saw home prices climb 238% between 1996 and 2020, the 17th-highest growth rate in our study. The odds of a 5% price drop in Boulder within 10 years of a home’s purchase were just 1%.
4. Odessa, TX
Located in west Texas, Odessa had the 20th-highest home price growth rate (nearly 227%) of all 358 metro areas in our study. Despite a 5% chance that a home would suffer a 5% drop in value between 1996 and 2020, Odessa cracks our top 5 this year after ranking eighth in last year’s study.
5. San Jose-Sunnyvale-Santa Clara, CA
Of the top 20 cities in our study, the San Jose metro area had the second-highest probability (19%) that a home would lose 5% of its value within 10 years of being purchased. However, the metro Bay Area experienced a price boom over the last 25 years, as home prices soared 309%, the second-highest growth rate in our study.