Even with high mortgage interest rates By discouraging buyers, home prices in most major U.S. cities rose by 2024.
In the 50 largest U.S. cities, median home prices rose 5.8% through November, compared to all of 2023, according to Redfin data shared with CNBC Make It.
Anaheim, California, saw the most growth, with home prices rising 12.5%. Like other fast-growing markets, it is close to a major city – Los Angeles – where expensive homes drive buyers to surrounding areas. Similar trends can be seen in other metropolitan 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, according to Redfin:
- Anaheim, California: 12.5%
- Newark, NJ: 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, WI: 8.1%
- Seattle: 8.1%
- Miami: 7.9%
- Cleveland: 7.5%
- Warren, Michigan: 7.5%
Home prices in Anaheim are has risen steadily in recent years due to a persistent shortage of housing, with a growing population is expected to put further pressure on availability over time. Developers have also built homes for families with above-average incomes, widening the gap and leaving many residents without affordable options. according to local outlet Voice of OC.
Limited housing construction is also driving up prices in the Northeast, especially in Newark, New Brunswick and Nassau County, near New York City. Remote working and high cost of living are encouraging buyers to look for more affordable, commuter-friendly suburbs.
While home prices are rising in most major cities, San Antonio and Austin, Texas, are exceptions, with prices remaining relatively flat. In contrast, Rust Belt cities like Milwaukee, Detroit and Cleveland — long known for their affordability — are seeing increased demand as buyers are looking for cheaper alternatives outside the more expensive markets.
The bottom line is this: Even if 30-year fixed mortgage rates fluctuate between 6% and 7% For much of 2024, demand – especially from wealthier buyers – has outpaced limited housing supply, pushing prices higher despite slower sales. This trend is especially pronounced in the big citieshome to many of the nations richest residents.