Ive analyzed theZillow Home Value Indexdata to identify the fastest-growing housing markets in Delaware from 2016 to 2025.

The results reveal a remarkable transformation in property values across both suburban communities and rural towns throughout the state.

This performance outpaced many traditional investment vehicles while providing housing utility and tax advantages.

25 Fastest-Growing Housing Market Towns in Delaware (Feb 2025)

Home Stratosphere | Leaflet

The property value nearly tripled the S&P 500s historical average annual return during this period.

For investors, the relatively low $147,419 entry point required minimal capital deployment for maximum percentage gain.

Newports strategic location near Wilmington enhances its long-term investment viability with sustained demand fundamentals.

Newport Home price History Chart

The steady appreciation curve shows a total absence of negative years, providing exceptional risk-adjusted returns on residential capital.

Post-2020 acceleration saw values climb 48.6% in just five years, demonstrating structural market shifts beyond cyclical factors.

The $226,467 entry point offered an optimal balance of moderate initial investment and substantial absolute dollar returns.

Clayton Home price History Chart

Claytons consistent performance makes it an excellent portfolio diversification asset with strong inflation-hedging characteristics.

The property value trajectory showed exceptional 35% growth during 2020-2022 alone, indicating accelerating investor interest.

With a capitalization rate exceeding most commercial investments, Frankford offers strong cash flow potential alongside capital appreciation.

Frankford Home price History Chart

Proximity to Delaware beaches without premium pricing creates an optimal balance of lifestyle benefits and investment efficiency.

The market displayed exceptional momentum during 2020-2022 with a 28.7% surge, demonstrating strong pandemic-era demand.

The border towns unique dual-state position creates distinctive market dynamics that limit supply while maintaining steady demand.

Delmar Home price History Chart

With price points still under state medians, Delmar offers continued upside potential for value-focused investors.

Property values surged 31% during 2020-2022 alone, demonstrating accelerating investor interest in this southern Delaware market.

With a relatively modest $167,390 entry point, this market offered exceptional return-on-investment efficiency with minimal capital requirements.

Laurel Home price History Chart

Laurels strategic position in western Sussex County balances affordability with substantial upside, unlike premium coastal markets.

The property value curve shows exceptional stability with only a brief 2019-2020 flattening before resuming strong upward momentum.

With a relatively modest $154,296 entry point, investors benefited from optimal return-on-investment efficiency requiring minimal capital deployment.

New Castle Home price History Chart

The historic district premium combines preservation of architectural character with substantial wealth creation.

New Castles strategic location near Wilmington and Philadelphia provides enduring demand fundamentals that support long-term price stability.

The $223,107 entry point offered an optimal balance of moderate capital requirements and substantial absolute dollar returns.

Smyrna Home price History Chart

Smyrnas position in northern Kent County creates enduring demand fundamentals supported by accessibility to major employment centers.

The market demonstrated exceptional stability with zero down years, providing investment returns without the volatility of equity markets.

Post-2020 acceleration generated 50.6% appreciation in just five years, offering pandemic-era buyers extraordinary returns.

Magnolia Home price History Chart

With a $232,690 entry point, investors secured middle-market exposure with significantly lower capital requirements than coastal communities.

Magnolias strategic position between Dover and Delaware Bay creates enduring demand fundamentals that support continued price stability.

Unlike many beach markets, Fenwick Island maintained consistent growth through 2025 without the valuation adjustments seen elsewhere.

Fenwick Island Home price History Chart

The investment carries significant tax advantages from rental depreciation while generating substantial vacation rental income.

With limited buildable land and strong demand, this oceanfront community combines wealth preservation with exceptional capital appreciation potential.

The 6.8% compound annual growth rate substantially outperformed traditional investment vehicles while providing housing utility and tax advantages.

Elsmere Home price History Chart

The extreme return-on-investment efficiency makes this market particularly attractive for investors seeking maximum percentage gains with limited funds.

Elsmeres proximity to Wilmington provides economic stability that supports continued price appreciation with minimal downside risk.

The market demonstrated exceptional stability with consistent year-over-year gains and zero down periods throughout the entire timeframe.

Felton Home price History Chart

The $206,438 entry point provided an optimal balance between affordable buy-in and meaningful absolute dollar growth.

Feltons central Delaware location creates enduring demand fundamentals that support continued price appreciation with limited volatility risk.

The market demonstrated exceptional stability with zero down years and consistent growth acceleration throughout the entire period.

Houston Home price History Chart

The $200,200 entry point provided an optimal balance between accessibility and meaningful dollar-volume appreciation.

Houstons position in southern Kent County offers investors maximum return potential without the premium pricing of coastal markets.

The market demonstrated exceptional stability with consistent year-over-year gains and zero value declines throughout the nine-year period.

Marydel Home price History Chart

Post-2020 appreciation accelerated to 54.1% in just five years, delivering extraordinary returns to pandemic-era buyers.

The $189,568 entry point offered an optimal balance between affordable buy-in and meaningful dollar-volume growth potential.

Marydels location along the Delaware-Maryland border creates unique supply constraints that support continued price appreciation with minimal downside risk.

Kent Acres Home price History Chart

The market demonstrated remarkable stability with zero down years and consistent upward momentum throughout the entire period.

The $174,572 entry point created exceptional return-on-investment efficiency requiring modest capital deployment.

Kent Acres proximity to Dover provides economic stability that supports continued price appreciation with minimal downside risk.

Dover Home price History Chart

The state capital demonstrated exceptional investment stability with consistent growth and zero down years throughout the period.

Post-2020 values climbed 52.9% in just five years, offering pandemic-era buyers extraordinary returns on modest capital deployment.

The $176,156 entry point provided an optimal balance between affordability and meaningful dollar-volume appreciation.

Camden Home price History Chart

The market demonstrated exceptional stability with zero down years and consistent upward momentum throughout the entire period.

The $206,805 entry point provided an optimal balance between reasonable buy-in and substantial dollar-volume appreciation.

Camdens proximity to Dover and strategic location in central Delaware creates enduring demand fundamentals that support continued price appreciation.

Viola Home price History Chart

The market demonstrated exceptional stability with consistent year-over-year gains throughout the entire timeframe.

Post-2020 values surged 56.0% in just five years, offering pandemic-era buyers extraordinary returns on modest capital deployment.

The $180,056 entry point created superior return-on-investment efficiency compared to higher-priced markets requiring greater capital.

Bowers Home price History Chart

With a modest $157,822 entry point, investors benefited from exceptional return-on-investment efficiency requiring minimal capital deployment.

The waterfront location along Delaware Bay enables investment capital to simultaneously capture substantial appreciation and premium seasonal rental income.

Bowers limited housing supply creates a favorable supply-demand imbalance that supports continued price appreciation.

Hartly Home price History Chart

The market demonstrated exceptional stability with zero down years throughout the entire timeframe.

The $185,460 entry point created exceptional return-on-investment efficiency requiring modest capital deployment.

Hartlys rural character combined with central Delaware location provides an optimal balance of lifestyle benefits and strong investment performance.

Ellendale Home price History Chart

The relatively low $151,952 entry point created exceptional return-on-investment efficiency requiring minimal capital deployment.

Ellendales proximity to both beaches and population centers creates a strategic investment position capturing multiple demand drivers.

Sussex Countys continued population growth provides fundamental support for sustained price appreciation with minimal downside risk.

Lincoln Home price History Chart

The market demonstrated exceptional stability with zero down years and consistent acceleration throughout the timeframe.

The $176,004 entry point created exceptional investment efficiency requiring minimal capital deployment for maximum percentage gains.

Lincolns eastern Sussex County position combines affordability with strategic access to both beaches and employment centers.

Wyoming Home price History Chart

This exceptional performance demonstrates how affordable entry points can deliver superior returns on a percentage basis.

Wyomings strategic location near Dover creates enduring demand that supports price appreciation.

The market demonstrated remarkable resilience, rebounding from a 2.5% dip in 2017 to deliver extraordinary returns thereafter.

Frederica Home price History Chart

The $183,662 entry point created exceptional investment efficiency requiring modest capital deployment for substantial percentage and absolute gains.

Fredericas strategic location in eastern Kent County provides optimal accessibility to both beaches and employment centers.

The extremely low $114,092 entry point created exceptional investment efficiency requiring minimal capital for maximum percentage returns.

Rodney Village Home price History Chart

With zero down years and consistent acceleration, this market outperformed most investment vehicles including many high-growth stocks.

The appreciation trajectory shows remarkable consistency without the volatility associated with comparable high-return investments.

The remarkably low $121,630 entry point created unmatched investment efficiency requiring minimal capital for maximum percentage returns.

Harrington Home price History Chart

The appreciation curve shows exceptional price momentum continuing through 2025, suggesting additional upside potential.

Harringtons southern Kent County location offers investors maximum return efficiency while significantly outperforming higher-priced markets on a percentage basis.