Home prices continued to climb in many major U.S. cities in 2024, despite higher mortgage rates, according to a recent report from CNBC.
Key Facts:
• Median home prices in the 50 largest U.S. cities rose 5.8% through November 2024, according to Redfin data.
• Anaheim topped the list with a 12.5% increase.
• Other high-growth areas include Newark, New Brunswick, Nassau County, and Providence.
• Rust Belt cities like Milwaukee, Detroit, and Cleveland also recorded gains, while San Antonio and Austin stayed flat.
• Full list of cities named: Anaheim, Newark, New Brunswick, Nassau County, Providence, West Palm Beach, Chicago, Detroit, San Jose, Fort Lauderdale, Milwaukee, Seattle, Miami, Cleveland, Warren, San Antonio, and Austin.
The Rest of The Story:
Limited inventory continues to push prices higher in well-known metro areas and their nearby suburbs, which appeals to buyers who commute to more expensive city centers.
Many of these regions saw faster growth because remote work and high living costs are driving homebuyers to surrounding areas.
Even Rust Belt markets, once celebrated for affordability, are seeing upward pressure as people search for lower-cost options outside pricier regions.
Meanwhile, a handful of places in Texas remain relatively steady, highlighting the uneven nature of the current market.
Here are the 15 metro areas with the fastest home price growth so far in 2024, according to Redfin:
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%
Commentary:
Although mortgage rates hovered between 6% and 7%, demand has stayed solid in certain regions.
However, higher borrowing costs might cool the market into 2025, at least for some buyers.
Once Trump’s economic team puts growth-oriented policies into effect, developers could ramp up construction and boost inventory.
This could lead to a more robust housing surge after 2025, potentially benefiting cities previously overshadowed by the hottest markets.
The Bottom Line:
Despite rising rates, supply shortages and pent-up demand have pushed prices up in many areas.
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If new policies spark growth, the market could take off in late 2025 and beyond.