Dan Seiffert SVP, Accounting | realtors.com
An analysis by the National Association of Realtors has revealed significant increases in home prices across numerous U.S. metropolitan areas at the end of last year. The report highlights 10 cities where home prices rose by at least 14.9%.
Half of these top-performing metros are located in the Midwest, with others scattered across the South and Northeast. "Affordable housing markets have seen sustained demand over the last couple of years as the rest of the housing market becomes less and less attainable," said Hannah Jones, a senior economic research analyst at Realtor.com. She added that strong demand has led to climbing home prices in these regions.
The high demand has resulted in inventories remaining below pre-pandemic levels, causing price surges as buyers compete for available homes, according to Jones.
Jackson, MS, recorded the most significant increase with a 28.7% rise in median single-family home prices compared to 2023, closing out the year at $251,600.
"Record-high home prices and the accompanying housing wealth gains are definitely good news for property owners," stated Lawrence Yun, Chief Economist at NAR. "However, renters who are looking to transition into homeownership face significant hurdles."
Peoria, IL, followed Jackson with a 19.6% increase in year-over-year price gains, where a typical home now costs $172,500.
Chattanooga, TN saw an 18.2% rise between Q4 2023 and Q4 2024 with a median price reaching $346,700 by year's end.
Elmira, NY and Fond du Lac, WI both experienced a 17.6% increase in median home prices year over year.
"The Midwest is the most affordable region in the country," noted Jones. This affordability has maintained buyer interest despite challenges elsewhere.
Overall data from NAR's report indicates that 89% of U.S. metro markets saw home price increases during Q4. The national median single-family existing-home price rose by 4.8%, reaching $410,000—a nearly 50% increase since 2019.
Regionally speaking, the South accounted for the largest share of single-family home sales during Q4 (45.1%), alongside modest price increases across other regions: Northeast (10.6%), Midwest (8%), and West (4%).
In contrast to these rising trends were eight Californian markets listed among America's priciest areas—San Jose’s median price surged close to 10%, hitting $1.9 million.
A positive note for potential buyers is that some metros did see declines; Yun mentioned relocation as an option for those seeking affordability amidst nationwide variances in pricing.
Housing affordability showed slight improvement too; monthly mortgage payments on typical homes decreased by about $37 compared to last year.
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