The 10 Best Housing Markets for Growth and Stability

a happy couple moves into their new home
Pormezz / Shutterstock.com

Homeownership often represents a foundation to build on as well as long-term stability. This applies not only to the lifestyle a homeowner envisions when making a purchase, but also to the value of the property.

Ideally, a home you purchase will steadily grow in value and not fluctuate too much in price. To that end, SmartAsset analyzed the data to uncover which metro areas in America are the best housing markets for growth and stability.

Specifically, we compared home value data in 357 metro areas for every quarter during the 25-year period from Q1 of 1995 through Q4 of 2019. For details on our data sources and how we put all the information together to create our final rankings, check out the data and methodology section next.

Data and methodology

lovelyday12 / Shutterstock.com

To create our rankings of the best housing markets for growth and stability, we looked at data for 357 metro areas. Specifically, we compared all of the areas across the following two metrics:

  • Stability. This is the probability that homeowners experienced a significant price decline (5% or more) at any point in the 10 years after they purchased the home.
  • Overall home price growth. The total growth in home prices during the time period we analyzed.

All data comes from the Federal Housing Administration (FHA). It covers the 25-year period from Q1 of 1995 through Q4 of 2019.

We used these two metrics to create our final rankings. Areas received a score of 100 on the stability metric if there was a 0% chance of a significant price decline. The metro area with the highest chance of a significant price decline (45%) received a score of 0.

We scored all other metro areas based on where they fell between these two values. The metro area with the highest overall home price growth received a growth index score of 100 and the metro area with the lowest growth received a 0. We scored all other metro areas based on their percentage growth between these two values.

Finally, we averaged each metro area’s scores over the two metrics. The metro area with the highest average score ranked first.

10. Dallas-Plano-Irving, Texas

Dallas, Texas
Sean Pavone / Shutterstock.com

One of five Texas entries in our top 10 is the Dallas metro area. This metro area had a 1% chance of a home price loss of at least 5% within 10 years of purchase, within the 25-year period from 1995 through 2019.

During those 25 years, the overall increase in home price was 180.91%, 66th-highest in our study.

9. Houston-The Woodlands-Sugar Land, Texas

Bicyclists cross wooden bridge Buffalo Bayou Park view downtown Houston
Nate Hovee / Shutterstock.com

In the Houston, Texas, metro area, the chance of a drop in home value of at least 5% within 10 years of purchase was 0%.

This area placed 57th out of 357 in terms of growth, with an overall home value increase of 188.41% from 1995 through 2019.

8. Odessa, Texas

A map of Odessa, Texas
Jason Kolenda / Shutterstock.com

The third Texas metro in the top 10 is Odessa, where there was a 5% chance of the value of a home dropping at least 5% in the first 10 years after its purchase, within the 25-year period from 1995 through 2019.

Odessa home prices also had the 22nd-highest growth in the study, with overall home values jumping by 226.02% over those 25 years.

7. Bismarck, North Dakota

Bismark, North Dakota
Ace Diamond / Shutterstock.com

The housing market in the Bismarck, North Dakota, metro area was very stable over the past 25 years, with a 0% chance of a 5% housing price drop in the first 10 years after the purchase of a home.

Bismarck also came in 48th-highest out of 357 in our study for home price growth from 1995 through 2019, at 194.01%.

6. Fort Collins, Colorado

Fort Collins, Colorado
marekuliasz / Shutterstock.com

The Fort Collins, Colorado, metro area had a fairly stable housing market over the 25-year period from 1995 to 2019, with just 2.00% odds that a home’s price would drop by at least 5% in the 10 years after its purchase.

The overall increase in home value during that 25-year period was 215.20%, 31st-highest out of all 357 metro areas in this study.

5. San Jose-Sunnyvale-Santa Clara, California

The skyline of San Jose, which has a lower median rent than median mortgage payment
stellamc / Shutterstock.com

The odds of experiencing a home price drop of 5% or more in the San Jose, California, metro area within 10 years of a home’s purchase was 19.00%.

In the 25 years from 1995 through 2019, the home price there increased 345.62%, the second-highest rate for this metric in our study.

4. San Francisco-San Mateo-Redwood City, California

San Francisco homes
Sergey Novikov / Shutterstock.com

Taking the No. 4 spot is the San Francisco, California, metro area, with odds at 19.00% of a 5% drop in home value over the 10 years after its purchase.

That said, the overall home price growth was 370.29% over the 25-year period from 1995 through 2019, the highest in our study.

3. Boulder, Colorado

Boulder, Colorado
randy andy / Shutterstock.com

The Boulder, Colorado, metro area also had a 0% chance of a 5% drop in housing price in the 10 years after it was purchased, within the time period from 1995 to 2019.

The overall growth in home prices in Boulder in those 25 years was 251.21%, the 15th-highest growth rate across all 357 metro areas in the study.

2. Austin-Round Rock-Georgetown, Texas

Austin, TX
Roschetzky Photography / Shutterstock.com

In the Austin, Texas, metro area, there was a 0% chance of a 5% loss in home price in the 10 years after it was purchased.

This area had the study’s 12th-highest growth rate in the 25-year period from 1995 through 2019, at 254.62%.

1. Midland, Texas

Midland, Texas skyline
NaturallyKristina / Shutterstock.com

Midland, Texas, is the number one U.S. metro area for growth and stability in the housing market.

The odds of a 5% loss in home price in the 10 years after it was purchased (during the 25-year period from 1995 through 2019) was 0%, and the overall home price growth in that 25-year period was about 287.82%, the fourth-highest rate for this metric across all 357 areas we studied.

Tips for managing your money

Consider investing in expert help

Financial adviser
Potstock / Shutterstock.com

If you’re in the market for a home, consider getting some help from an experienced adviser.

Finding the right financial adviser who fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisers in your area in 5 minutes.

If you’re ready to be matched with local advisers that will help you achieve your financial goals, get started now.

Ready to buy?

Family Home Buyers
Andy-Dean-Photography / Shutterstock.com

Decide whether you want to rent or buy before you leap into your housing search. SmartAsset has a tool that will help you make that choice based on your situation.

A clear picture of your payments

homeowners
Alexander Raths / Shutterstock.com

Know what your mortgage payment will be, regardless of the long-term outlook for your investment. This will play a significant role in planning your monthly budget.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
4 Streaming TV Services That Cost $20 a Month — or Less
4 Streaming TV Services That Cost $20 a Month — or Less

Here’s how to ditch cable and satellite TV — and save a bundle — without giving up your favorite shows.

9 Foods You Should Never Buy Again
9 Foods You Should Never Buy Again

Make the wrong food choices, and you can ruin your health — and possibly shorten your life.

How Baby Boomers Are Earning an Extra $573 a Month
How Baby Boomers Are Earning an Extra $573 a Month

In the gig economy, baby boomers are out-hustling their younger competition. You can cash in, too.

2-Minute Money Strategy: How Should I Invest My Retirement Savings?
2-Minute Money Strategy: How Should I Invest My Retirement Savings?

If retirement is on the horizon, you can’t afford to take too much risk, but you also need to make as much as possible. Here are your options.

8 Award-Winning Products That Impressed 40,000 Shoppers
8 Award-Winning Products That Impressed 40,000 Shoppers

The Product of the Year awards help shoppers find the best pet products, personal care items and everything in between.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
11 Senior Discounts for Anyone Age 55 or Older
11 Senior Discounts for Anyone Age 55 or Older

There is no need to wait until you’re 65 to take advantage of so-called “senior” discounts.

20 Things That Are Actually Worth Stockpiling
20 Things That Are Actually Worth Stockpiling

You don’t need a year’s supply of toilet paper to survive an outbreak, but consider stocking up on these items.

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

Can a Twice-Divorced Woman Claim Social Security Survivors Benefits?
Can a Twice-Divorced Woman Claim Social Security Survivors Benefits?

Understanding survivors benefits rules is the key to getting the most from your benefit.

These Are the 10 Worst Cars for Depreciation
These Are the 10 Worst Cars for Depreciation

Two types of vehicles are especially likely to see steep plunges in value.

Do This With Your Mask Before Thanksgiving Dinner
Do This With Your Mask Before Thanksgiving Dinner

Before you sit down at the year’s biggest feast, make sure to properly care for your mask.

Never Buy These 10 Things With Your Credit Card
Never Buy These 10 Things With Your Credit Card

Credit cards offer many conveniences and protections, but sometimes it’s simply smarter to keep the plastic tucked away.

13 Amazon Purchases That We Are Loving Right Now
13 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

10 Things I Always Buy at Trader Joe’s
10 Things I Always Buy at Trader Joe’s

From snacks to sweets to side dishes, stock your cart with these time-tested favorites on your next TJ’s run.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

There are easy high-paying majors available in the U.S. — and no bachelor’s degree is required. We’re here to help you find easy degrees that pay well.

8 Surprising Household Items You Can Sell for Fast Cash
8 Surprising Household Items You Can Sell for Fast Cash

Sometimes, the humblest household items are worth the most money.

Cut These 11 Expenses Now If You Hope to Retire Early
Cut These 11 Expenses Now If You Hope to Retire Early

Like the idea of financial independence? Part of the FIRE equation is cutting costs.

5 Ways Social Security Will Change in 2021
5 Ways Social Security Will Change in 2021

These adjustments will affect both workers and retirees in the new year.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

15 Products You Need — Even If You Didn’t Know It
15 Products You Need — Even If You Didn’t Know It

Discover some must-have products on Amazon that you didn’t even know you were missing.

Stop Buying These 19 Things Online
Stop Buying These 19 Things Online

The internet has changed how we shop. But for some things, you’re still better off buying the old-fashioned way.

7 Tips for Building an Emergency Food Supply
7 Tips for Building an Emergency Food Supply

A pandemic or natural disaster could leave you reliant on your existing emergency food supply. Is your pantry well-prepared for emergencies? Knowing what to stock up on for emergencies can be a difficult task and we’re here to help.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.