10 Cities Where Home Prices Are Rising the Most
Cities Where Home Prices Are Rising the Most
Are you intersted in moving somewhere new and want to know where in the United States home prices are rising? Keep reading to learn more about the cities that have growing home prices.
Home prices are constantly changing throughout the year due to many different things. Metro and cities outside the larger cities are experiencing a jump in home prices. Many people are searching to relocate outside significant city limits to afford more.
According to the US Census Bureau, almost all cities with rising home prices have a population of less than 300,000 and are less than 140 miles from one of the top 50 metros in the country. Some are exceptions, but most of these are on the rise.
If you are looking to move somewhere new and are wondering where the best places are to live, the most affordable, and the ones to avoid, keep reading to learn more about these cities that are growing drastically.
Here are the cities with home prices rising.
Chapters
1. Los Angeles, Califronia
California is the leader in this. There are many reasons why California is growing, and one is because it has been the most impacted by price increases. The city with the most growth will be Los Angeles, with a 23% increase.
California has a longstanding housing shortage, especially in LA and San Diego. Los Angeles housing market is considered very competitive, and as of last year, the median selling price was about $983,000, which shows an 11.2% year-over-year increase.
Los Angeles is a seller's market, meaning the demand for homes outweighs the supply, so if you are looking to sell your house in Los Angeles, it is a great time, but there are probably better times to buy a home due to the price increase.
However, the market outlook for this area is predicted to have a 4% increase in home values, but the housing market is showing signs of recovery and growth for the coming year. So, if you are intersted in moving to this area, keep an eye out on the housing market to find the best time to move here.
2. San Diego, California
In August 2023, the average home price in San Diego came in line at $1M for the first time, rising about 4% from July and about 13% from last year. However, this area has seen a sharp decrease in home prices in the past month.
Last month, the median family home price fell about 1.6%, but the prices here are still considered to be much higher than usual. The housing market in this area is also very competitive and expensive, making it harder for people to relocate here.
There are many reasons why the housing market is expensive in San Diego, and one of the main reasons is the rise in interest rates, which has caused people to sell more properties than average, making it a slow market with low inventory.
If you are interested in moving to San Diego, keep an eye out on the housing market because this area is experinces drastic changes.
3. Savannah, Georgia
Savannah has a median listing home price of $425,000 as of August 2023 and has increased about 13% over the past year. Home prices are trending up 8.1% year-over-year in the area, and the housing market is considered a seller's market, which means more people are searching for homes for sale in the area than available.
The Savannah housing market has captured the attention of many home buyers and sellers, and in 2023, the market experienced a drastic shift in prices and trends. The housing market is experiencing high competitiveness and is predicted to rise.
However, the median sales price in Savannah is still lower than the national average, but costs are rising drastically due to the demand for housing here. The housing market is showing solid trends, which affect the forecast, so keep an eye out on the market if you are searching to relocate to Savannah.
4. Rochester, New York
The Rochester housing market is very competitive, and the median home price was $160K last month, with an 11.9% increase since last year. However, home prices are more affordable here than in many parts of the country, but prices have increased due to the demand for homes.
Even though the prices in Rochester have risen in the past year, the prices are still much lower than the national median average and are considered to be a highly affordable area.
Due to the increase and growth of the housing market, Rochester is a popular place for people to relocate to due to the location and affordable news. However, it is predicted to slow down within the next few months and rise again at the beginning of 2024.
So, if you are interested in moving to Rochester, you are in luck because homes are more affordable here than in the other big cities, so contact an agent to jump-start the process of finding the perfect home.
5. Chicago-Naperville, Illinois
The Chicago-Naperville area is a popular place to move to. Homes here have a median listing price of $739,900 and have seen a 7.7% increase over the year. Due to the demand for houses in the area, homes are more expensive than usual.
The housing market here is somewhat competitive but better than other surrounding cities. The rising interest rates, inflation, and economic concerns are just a few reasons housing prices have risen here. However, the housing market here is predicted to cool down slowly.
The convening, top schools, and diverse neighborhoods are some of the main reasons why people seek to relocate here. The seller's market is good for sellers, but if you are intersted in moving to this area, keep an eye out on available real estate to find the perfect home.
6. Cincinnati, Ohio
The short housing supply in Cincinnati is one of the main reasons housing costs have risen in the area. Over the past year, the housing prices in Cincinnati have risen about 14.6%.
The Cincinnati housing market is competitive and has a median price of $250K, which is lower than the national average but has been rising over the past year. Since September 2022, the median price of a home here has increased about 4.2%.
With the rise of mortgage rates, housing prices in this city will continue to rise. On the other hand, the inventory of homes has declined by 6%, which means the housing market is a seller's market, so it is suitable for sellers.
On the plus side, even though housing prices are rising a lot in Cincinnati, the median price of a home is still well below the national average, so the homes here are still considered affordable.
7. Indianapolis, Indiana
House prices in Indianapolis have increased about 10% over the past year, with a median selling price of $250,000. This city offers a diverse range of neighborhoods, excellent amenities, and a thriving job market, which makes it a highly sought-after area.
However, it is predicted that the housing market will slow down in the area, but on the plus side, the home prices here are still lower than the national average even though they are using.
Indianapolis has one of the nation's hottest housing markets. Inventory of homes has improved over the year but still is low, making it harder for people to buy homes. Despite the market changes, this area is an excellent place to buy a house and a perfect time for sellers to sell homes.
8. Richmond, California
Richmond, California, has seen a 15% housing price increase over the past year. California is known to have higher home prices, while California overall has a longstanding housing shortage.
As of September 2023, Richmond home prices did go down a little but still have a median price of $631,000. There are many diverse and unique neighborhoods throughout this area. However, these places tend to be less affordable, and the city has tried to change this over the past few years.
However, housing and income go hand in hand, and the median income differs from the median home price, making it harder for people to find affordable homes. While the area is rising in prices due to the economy, some areas are more affordable, so if you want to live here, keep your options open to find the place to meet your needs.
9. Boston, Massachusetts
Boston has a median home price of $844,200 as of August 2023 and has grown about 13.1% over the previous year. Due to the strong demand and limited inventory and space to grow, the Boston housing market tends to be more competitive and expensive.
However, looking at the real estate market forecast, Boston is expected to see a drop in overall real estate sales, which would lead to price reductions. There are times better times to buy a home in Boston, so please look at the market trends if you are interested in moving to Boston to get the best offers.
With the increase in the housing market and prices, Boston has been struggling in the economy because the median incomes are different from the housing costs. Generally, the highest prices hit the market in September and tend to fall after, so if you want to move to Boston, keep an eye out for available homes.
10. Columbus, Ohio
Columbus has seen a 12% increase in home prices over the past year. However, due to the shortage of homes for sale in the area, the costs keep climbing, making the median house price about $280,000, which is still lower than the national average.
While the pandemic caused housing prices to increase, the low inventory has taken over the limited demand and the reasoning behind the increase. Prices remain higher in the area, but on the plus side, homes are more affordable here than in other cities.
The Columbus housing market has shown many exciting trends, with an increasing trend overall. The demand for housing in the area is the most considerable tissue Columbus is facing, so if you are looking to sell, this may be a great time, while if you are looking to buy, be aware of the market trends.
FAQS
Where are house prices rising the most?
Looking through the year, the area with the highest home prices that tend to rise more is the more western states of the United States.
Where has there been the most significant increase in home prices?
Several housing markets have seen a significant increase, especially in California. However, New Jersey has seen the fastest rise in rates in the nation compared to other states.
What time of year are house prices the highest?
It has been shown that the best deals on the house are usually in the fall and winter, while the worst time to buy a home is spring because it is the most expensive season.
Cities Where Home Prices Are Rising the Most - The Bottom Line
Many young people are worried about affording a home; the high real estate prices and changes in the housing market and job opportunities have made finding a home more difficult than in previous years.
Many cities nationwide have experienced intense gentrification, which forces local neighborhoods to raise prices, making it harder for people to afford a home. Western states have experienced the most significant increase in home prices over the decade compared to the other states.
Looking at all the cities that are rising in home prices, we see California is the leader. There are many reasons why California is growing, and one is because it has been the most impacted by price increases. The city with the most growth will be Los Angeles, with a 23% increase.
If you are considering a move, please do not hesitate to contact us or visit our website. Our team at Raleigh Realty is here to help you with the home buying and selling process.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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