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re you looking for a stable and profitable place to invest in real estate, despite the ups and downs of the economy? You're not alone. Many investors are seeking out smaller housing markets that can buck the trend and boom. According to the latest data, several areas are expected to experience growth of at least 3% in home prices between May 2025 and May 2026.

    Zillow's forecast paints a mixed picture for the overall housing market in 2025, with a projected 1.4% decrease in home values due to an increase in available houses for sale and higher mortgage rates. However, existing home sales are expected to slightly increase to 4.14 million, giving buyers more choices and a stronger negotiating position.

    Rents are also expected to rise, but at a slower pace than in previous years. Single-family rents will grow by 2.8%, while multifamily rents will increase by 1.6%. This suggests that the rapid construction of recent years is normalizing the market and increasing vacancy rates.

    While the national outlook may be subdued, real estate is fundamentally local. Broad generalizations often miss the unique dynamics of individual markets. Certain areas are insulated from national trends due to specific factors like strong job growth, desirable lifestyle attributes, or limited housing supply.

    Here are 10 housing markets that are expected to outperform the broader market, based on projections indicating at least 3% growth in home prices between May 2025 and May 2026:

    1. Statesboro, GA - 3.5%

    2. Atlantic City, NJ - 3.4%

    3. Edwards, CO - 3.4%

    4. Brevard, NC - 3.4%

    5. Price, UT - 3.4%

    6. Thomaston, GA - 3.3%

    7. Steamboat Springs, CO - 3.2%

    8. Cornelia, GA - 3.1%

    9. Keene, NH - 3.0%

    10. Maysville, KY - 3.0%

    Let's take a closer look at these locations and understand why they're poised for growth.

    Statesboro, GA: The city benefits from its location near Savannah and the presence of Georgia Southern University, which brings in students and faculty. A steady demand for housing and potentially lower construction costs could fuel growth.

    Atlantic City, NJ: After years of decline, Atlantic City is attempting to reinvent itself with new development projects and a focus on diversifying its economy beyond gambling. The lower cost of living compared to other parts of New Jersey and proximity to the coast could be attractive.

    Edwards, CO: Nestled in the Vail Valley, Edwards offers access to world-class skiing and outdoor recreation, making it appealing to affluent buyers seeking vacation homes or a high quality of life.

    Brevard, NC: Located in the Blue Ridge Mountains, Brevard is attracting retirees and those seeking a more peaceful lifestyle. The area's natural beauty, outdoor recreational opportunities, and growing arts scene are key draws.

    Price, UT: This small town has a growing population and offers cheap housing and good employment opportunities.

    Thomaston, GA: The city may see growth due to its increasing population and the fact that it is the county seat.

    Steamboat Springs, CO: With a small population, Steamboat Springs offers an intimate location to live.

    Cornelia, GA: Cornelia may see growth due to its increasing population and the growing need for housing.

    Keene, NH: Keene may see growth due to being a college town and its proximity to Boston.

    Maysville, KY: Maysville is a small-town community that attracts locals who enjoy the area.

    Before investing in these markets, it's essential to do your own research and consider the following:

    * Due diligence: Thoroughly research each market, looking at local economic indicators, job growth, population trends, planned developments, and the overall quality of life.

    * Local expertise: Connect with local real estate agents, property managers, and other professionals who have firsthand knowledge of the market.

    * Risk tolerance: Assess your own risk tolerance and investment goals. Investing in smaller or emerging markets can offer higher potential returns but also comes with increased risk.

    * Long-term perspective: Real estate is generally a long-term investment. Be prepared to hold onto your property for several years to realize its full potential.

    Diversifying your real estate portfolio across different markets and property types is a smart way to mitigate risk. Remain flexible and adaptable to changing market conditions, as the real estate market can shift quickly.