7 Types of Homes Expected to Soar in Value by the End of 2025

Halfway through the year, it’s still a seller’s market in many U.S. real estate markets. According to Forbes, there are only about three months’ worth of inventory available in some states, far below the six months needed for a true buyer’s market.

Home prices are continuing to climb, with the median U.S. home sales price around $420,800 as of the first quarter of 2024. High interest rates have priced out many first-time buyers. However, the real estate market can change quickly, and certain types of homes are expected to see significant value increases by the end of 2025. This is great news for current homeowners looking to sell and make a solid return, and useful information for prospective buyers on which types of homes might be worth investing in.

GOBankingRates spoke with several real estate professionals about the main types of homes expected to soar in value. Here are their predictions:

1. Historic Homes

Historic or unique-looking homes might see a value increase in the next year and a half.

“Historic homes and unique properties that aren’t being built new will see an increase in value because there are fewer of them, and more people want them,” said Danny Johnson, real estate professional at We Buy Houses Cash Texas. “These homes are often centrally located, and their values will increase quite nicely over the next year.”

2. Multifamily Units

High mortgage rates and rising home prices are driving many potential buyers towards multifamily units, making these a worthwhile investment.

“Multifamily housing, especially units near city centers and transportation hubs, have seen high demand from both investors and homebuyers,” said Matt Morgan, a licensed real estate salesperson with IPA Commercial Real Estate. “Rent growth in these areas continues to outpace inflation, indicating strong fundamentals. I expect values for multifamily properties in walkable, amenity-rich neighborhoods to increase 10%-15% annually over the next five years.”

3. Sustainable and Eco-Friendly Homes

Younger buyers are prioritizing sustainability, driving up the value of eco-friendly homes.

“Homes that are carbon neutral, energy-conscious, use passive solar, and consider the environment will continue to soar,” said Lindsey Harn, a top agent at Christie’s International Real Estate. “As wealth transfers to younger generations, their eco-conscious priorities will drive demand for these greener homes.”

Manufactured and modular smart homes, which are energy-efficient and customizable, could also see a jump in value.

“These properties appeal to first-time homebuyers looking for affordability and sustainability,” Morgan said. “As the stigma around ‘mobile homes’ fades, demand should rise substantially, with values increasing 5%-8% per year.”

4. Assisted Living Facilities

With an aging population, the demand for senior or assisted living facilities is expected to grow, boosting property values.

“As demand for care facilities surpasses supply, especially in desirable retirement destinations, values could rise 7%-12% annually,” Morgan said.

5. Furnished Apartments and Condos

Fully furnished apartments and condos are gaining popularity among those who prefer low-maintenance living.

“As a short-term rental property manager, I believe the value of furnished apartments and condos will increase substantially over the next few years,” said Garrett Ham, CEO of Weekender Management. “There’s consistent demand for flexible, move-in-ready units close to city centers and public transit.”

6. Homes With ADUs

Homes with accessory dwelling units (ADUs) are becoming more popular as homeowners seek additional income streams.

“Because affordability is key, homes with ADUs will likely increase substantially,” said Rick Albert, broker associate with LAMERICA Real Estate. “The ADU offers flexibility for rental income, housing extended family, or additional space like a home office.”

7. Starter Homes

Starter homes are becoming increasingly rare, which could drive up their value.

“If you can get your hands on one, a starter home is one of the most valuable properties on the market right now,” said Martin Orefice, real estate expert and CEO of Rent To Own Labs. “They are so rare that they just keep going up in value, as builders aren’t as focused on them and large investors have bought up many of them.”

Keeping an eye on these trends can help both sellers and buyers make informed decisions in the ever-changing real estate market.

7 Types of Homes Expected To Soar in Value by the End of 2025 | GOBankingRates