The 20 most undervalued residential markets in the U.S.

Since investing in real estate is considered a path to wealth accumulation, one of the things potential homebuyers look at when choosing a home is the availability of a community in which homes will increase in value. Before deciding on a place to live, buyers often work with real estate agents to find out the average home value in a neighborhood or research information online themselves. After all, new homeowners want to make sure their property is income-producing and that they've made a great purchase.

But which cities are best for buying real estate for financial growth?

GOBankingRates conducted a study analyzing data from Zillow s''homes: $48,439

2023 year and median home value: $177,746

2023 year and median home value: $225,839

Difference between list price and home value: $48,093

2023 year and median home value: $328,544

2023 year and median home value: $374,024

Difference between list price and home value: $45,480

2023 year and median home value: $302,803

2023 year and median home value: $344,873

Difference between list price and home value: $42.071

2023 year and median home value: $320,231

2023 year and median home value: $361,620

Difference between list price and home value: $41,389

2023 year and median home value: $191,600

2023 year and median home value: $230,830

The difference between the price''$211,526

Difference between list price and home value: $30,882

2023 year and median home value: $211,200

2023 year and median home value: $241,852

Difference between list price and home value: $30,652

2023 year and median home value: $236,172

2023 year and median home value: $266,254

Difference between list price and home value: $30,082

2023 year and median home value: $177,300

2023 year and median home value: $205,482

Difference between list price and home value: $28,182

Whether you're looking for a new home to live in for the next few years or an investment property to generate additional income, these cities are a great place to start.