The Most Underrated U.S. Cities for Real Estate Investments

• The most underrated US city for real estate investments is Jacksonville, which has seen the highest price growth over the past five years, rising nearly 69 percent.
• Irvine stands out as the safest city on the list, with the highest safety index, making it an attractive option for buyers prioritizing security.
• Texas has the most cities on the list, with Austin, Dallas, and San Antonio all ranking among the top ten, showing the state’s continued growth in the housing market.

A recent study by Badeloft USA identified the most underrated cities for real estate investments in the US by analyzing safety, affordability, and market trends. Cities were chosen based on strong safety ratings, ensuring they offer secure housing options. The research compared property prices per square foot in 2020 and 2024, calculating how much they have changed over time. To give a fuller picture of the market, average home prices were also considered. Cities were ranked based on where prices have shifted the most, helping to highlight places that still offer good value for buyers.

You can see the full research by this link.

Jacksonville leads the ranking as the most underrated city for real estate investments, with the highest price change in five years reaching 68.59%. Despite having a moderate safety index of 43.6, Jacksonville’s market shows exceptional growth combined with relatively accessible pricing at $290.8K, making it attractive for investors seeking rapid equity building in Florida’s northeastern region.

Tampa follows in 2nd with a strong 55.74% five-year price growth. The city balances an above-average safety score of 53.8 with higher housing costs at $375.8K, the most expensive entry point among the top 10 cities. Tampa’s coastal location and growing economic base continue to drive demand despite higher entry costs.

Austin ranks 3rd with a 55.35% price growth. The Texas capital stands out with the 2nd highest safety rating (57.4) among the top five cities while offering affordable housing at just $92.8K, making it the most accessible market in terms of entry price point in the entire top 10.

Orlando ranks 4th with a solid 46.66% five-year growth rate. With a balanced safety rating of 50.4 (lower than Tampa and Austin but higher than Jacksonville) and housing costs at $147.5K, Orlando presents a more affordable Florida alternative to Tampa with a price point over $228K lower.

Dallas comes in at number 5 with a five-year appreciation rate of 46.22%. The city has remained a steady yet attractive market, with an average house price of $307.4K—more than double Austin’s cost and the second most expensive among the top five cities.

Tucson ranks 6th with 40.97% appreciation, about 5 percentage points below Dallas. Despite having one of the lower safety ratings at 45.4 (higher than Jacksonville but lower than all other preceding cities), Tucson commands the highest housing prices at $329.3K, exceeding even Tampa’s costs.

San Antonio ranks 7th with a price increase of 40.13% since 2020. The city’s average home cost of $253K makes it one of the more affordable options on the list. Compared to other Texas cities, San Antonio presents a mix of affordability and price appreciation, offering buyers a balanced investment opportunity.

Irvine lands in 8th with 34.86% appreciation. This California city has the highest safety index (69) by a significant margin—over 11 points higher than Austin, the previous safety leader—while maintaining surprisingly affordable housing at $95.2K, nearly matching Austin’s exceptional value.

Columbus ranks 9th with 34.39% price growth, just below Irvine. With an identical safety rating to Orlando (50.4) and the second-lowest house prices at $109.4K, Columbus represents an affordable Midwest option with balanced metrics across all categories.

Kansas City rounds out the top 10 with 33.39% appreciation. It has the lowest safety index (41.9) in the entire top ten, while offering pricing at $221.9K—considerably higher than Austin, Irvine, and Columbus but more accessible than most other cities in the ranking.

A spokesperson from Badeloft USA commented on the study: “Real estate markets are constantly shifting, and buyers who focus on emerging trends rather than just major cities often find better long-term value. While some markets have cooled, others continue to see strong appreciation, making them worth considering for those looking to invest. Homebuyers should take into account factors beyond just price increases, such as safety, economic growth, and local demand, when evaluating where to buy. Strategic decisions made now can lead to strong returns in the years ahead.”

Jessie F