Realtor.com Identifies Five Undervalued U.S. Housing Markets Experiencing Growth

What's Happening?

Recent data from Realtor.com highlights five U.S. housing markets that are currently undervalued but showing signs of significant growth. The report indicates that the median existing home prices increased by 2.4% annually, reaching $418,300 in the second quarter of 2025. The South leads the nation in housing supply, with over 50% of new and existing home listings. The markets identified include Oklahoma City, Des Moines, Ocala, Kansas City, and Hollywood, Florida. These areas are attracting attention from home buyers and investors due to their affordability and growth potential. Factors such as strong job markets, downtown development, and lower living costs are driving demand in these regions.

Why It's Important?

The identification of these undervalued markets is significant for potential home buyers and investors looking for affordable options with growth potential. As housing prices continue to rise nationally, these markets offer a chance to invest in real estate without the high costs associated with larger metropolitan areas. The growth in these markets could lead to increased economic activity and development, benefiting local economies. Investors from high-cost states are particularly interested in these areas due to their affordability and potential for stable cash flow. This trend may also influence migration patterns as families seek more affordable living conditions.

What's Next?

As these markets continue to gain popularity, further investment in infrastructure and commercial development is expected. This could lead to increased property values and rental demand, attracting more investors and home buyers. Local governments may need to address the challenges of rapid growth, such as housing shortages and increased demand for public services. The ongoing development in downtown areas and cultural renaissance in cities like Des Moines could further enhance their appeal. Stakeholders, including real estate developers and local businesses, will likely play a crucial role in shaping the future of these markets.

Beyond the Headlines

The growth of these undervalued markets may have broader implications for the U.S. housing industry. As more people move to these areas, there could be shifts in demographic patterns and changes in local economies. The focus on affordable housing options may also influence national housing policies and initiatives aimed at addressing housing affordability. Additionally, the influx of new residents could lead to cultural and social changes within these communities, fostering diversity and innovation.