At Avantiway Financial, we understand that navigating the housing market can be complex, especially in the face of rising mortgage rates. Despite high mortgage rates discouraging many buyers, 2024 has seen home prices climb in most major U.S. cities.
According to Redfin data shared with CNBC Make It, median home prices across the 50 largest U.S. cities have risen by 5.8% through November, compared to all of 2023. This indicates a continued upward trend in home values despite the challenges posed by the mortgage environment.
Anaheim Leads the Way in Price Growth
Anaheim, California, leads the way with the most significant increase, seeing a 12.5% jump in home prices. This rise is largely due to its proximity to Los Angeles, where high home prices are pushing buyers into surrounding areas. As more people seek homes in nearby, more affordable metro areas, the housing demand continues to grow, driving prices higher. Similar patterns can be seen in other major metro areas close to larger cities, such as Newark and Nassau County near New York City.
Top 15 U.S. Metro Areas with the Fastest Home Price Growth in 2024
Here’s a snapshot of the 15 metro areas experiencing the fastest home price growth 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, Illinois – 8.6%
- Detroit, Michigan – 8.5%
- San Jose, California – 8.5%
- Fort Lauderdale, Florida – 8.3%
- Milwaukee, Wisconsin – 8.1%
- Seattle, Washington – 8.1%
- Miami, Florida – 7.9%
- Cleveland, Ohio – 7.5%
- Warren, Michigan – 7.5%
The Factors Driving Price Increases
Anaheim’s steady rise in housing prices is largely attributed to a persistent shortage of homes, compounded by a growing population that is expected to further strain housing availability. Developers are focusing on building homes for higher-income families, which has only widened the gap and left many residents searching for affordable housing options.
Similarly, in the Northeast, areas like Newark, New Brunswick, and Nassau County are experiencing limited housing options, further driving up prices. As remote work continues to be a viable option for many, buyers are increasingly seeking more affordable, commuter-friendly suburbs, contributing to the demand.
Rust Belt Cities See a Resurgence
While many major cities are experiencing price increases, there are a few exceptions. Cities like San Antonio and Austin, Texas, are seeing relatively flat home prices. On the other hand, cities in the Rust Belt, such as Milwaukee, Detroit, and Cleveland, are seeing increased demand as buyers look for affordable alternatives outside the more expensive markets.
The Bottom Line: Limited Housing Supply Continues to Drive Prices
Despite 30-year fixed mortgage rates hovering between 6% and 7% throughout much of 2024, the demand for homes — particularly from wealthier buyers — has outpaced the limited housing supply, pushing prices higher. This trend is especially evident in large cities, which are home to many of the nation’s wealthiest residents. While sales may be slowing, the pressure on home prices is unlikely to ease anytime soon.
At Avantiway Financial, we understand the challenges this presents to both buyers and sellers. If you’re looking to make a move in today’s market, whether you’re buying or refinancing, it’s important to work with someone who can help you navigate these fluctuating market conditions. Reach out to us today to discuss your options and develop a strategy tailored to your financial goals.
