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Home Prices Rise in Most Major US Cities Despite High Mortgage Rates
Despite high mortgage rates discouraging buyers, home prices have climbed in most major US cities in 2024. According to data from Redfin, the median home price in the 50 largest US cities has increased by 5.8% through November, compared to all of 2023. Anaheim, California, saw the most growth, with home prices up 12.5%.
The trend is not unique to Anaheim, as similar patterns can be seen in other metro areas near major cities, such as Newark and Nassau County near New York. Here are the 15 metro areas with the fastest home price growth so far in 2024:
* Anaheim, California: 12.5%
* Newark, New Jersey: 11.3%
* New Brunswick, New Jersey: 10.8%
* Nassau County, New York: 9.9%
* Providence, Rhode Island: 9.8%
* West Palm Beach, Florida: 8.6%
* Chicago: 8.6%
* Detroit: 8.5%
* San Jose, California: 8.5%
* Fort Lauderdale, Florida: 8.3%
* Milwaukee, Wisconsin: 8.1%
* Seattle: 8.1%
* Miami: 7.9%
* Cleveland: 7.5%
* Warren, Michigan: 7.5%
Anaheim’s housing prices have been steadily increasing in recent years due to a persistent shortage of homes and a growing population. Developers have been building homes for above-moderate-income families, widening the gap and leaving many residents without affordable options. Limited housing is also driving up prices in the Northeast, particularly in Newark, New Jersey, and Nassau County, New York, as remote workers and those seeking affordable options flee more expensive cities.
Despite home prices rising, some areas have bucked the trend, with San Antonio and Austin, Texas, seeing relatively flat prices. Rust Belt cities like Milwaukee, Detroit, and Cleveland, which were once known for their affordability, are now experiencing increased demand as buyers seek lower-cost alternatives outside more expensive markets.
Despite high mortgage rates, demand – particularly from wealthier buyers – has outpaced limited housing supply, pushing prices higher. This trend is especially pronounced in large cities, home to many of the nation’s wealthiest residents.