U.S. Cities Where Home Prices Are Surging—And What It Means for You!
Lisa Mailhot | February 17, 2025
Sellers
Lisa Mailhot | February 17, 2025
Sellers
At the close of last year, most U.S. metro markets saw home prices increase, with 10 cities seeing gains of at least 14.9%, according to the National Association of Realtors® (NAR). This sharp rise was largely driven by sustained demand in affordable markets.
“Affordable housing markets have seen sustained demand over the last couple of years as the rest of the housing market becomes less and less attainable," explains Realtor.com® economic analyst Hannah Jones. However, high demand has led to reduced inventory and surging prices.
Here’s a breakdown of the top 10 metros leading the pack in price growth:
Median Home Price: $251,600
Jackson led the nation with a staggering 28.7% increase in home prices. Buyers have been actively competing in this market, keeping inventory tight and prices high.
Median Home Price: $172,500
Peoria saw significant demand, especially from buyers looking for affordable options in the Midwest.
Median Home Price: $346,700
Located in the South, Chattanooga experienced a price surge driven by its attractive business climate and desirable quality of life.
Median Home Price: $167,800
Elmira stands out as the only Northeastern metro on the list, with buyers drawn to its lower price point compared to other regional markets.
Median Home Price: $263,800
This Wisconsin town has seen steady price growth, largely due to increased competition for limited housing inventory.
Median Home Price: $221,900
Cleveland continues to attract buyers who appreciate its affordability and access to larger metropolitan amenities.
Median Home Price: $312,200
Bismarck’s market has tightened, with a surge in both demand and home values over the past year.
Median Home Price: $209,600
Akron’s growing popularity among first-time buyers has pushed home prices steadily upward.
Median Home Price: $311,900
Blacksburg has become a prime location for buyers seeking a balance between scenic living and strong job opportunities.
Median Home Price: $207,000
Canton rounds out the top 10 list, benefiting from continued affordability and proximity to major Midwest business hubs.
While much of the nation is grappling with mortgage rates nearing 7%, regions like the Midwest and South have seen steady demand. The Midwest, in particular, remains the most affordable U.S. region. Hannah Jones notes, “The Midwest is the most affordable region in the country, which has enabled buyer demand to hold steady despite affordability headwinds.”
In total, 89% of metro markets across the U.S. reported home price increases last quarter, with the national median single-family home price up 4.8% year-over-year to $410,000.
The good news? Not all metros experienced price hikes. In 11% of U.S. markets, prices actually declined, offering more affordable opportunities for buyers willing to relocate. NAR’s Chief Economist Lawrence Yun explains, “While recognizing many workers may not have the option to relocate, those who can or are willing to move may find more affordable conditions, especially given the wide variance in home prices nationwide.”
Additionally, slight improvements in affordability have emerged, with the average monthly mortgage payment on a typical home dropping by 1.7% compared to last year.
As home prices continue to rise in many regions, opportunities still exist for savvy buyers and sellers. Whether you're thinking of buying, selling, or investing, knowing the trends can help you make smart decisions. If you're considering a move to Orange County, connect with me. I’m here to guide you through the process and help you make the most of your real estate journey.
Reference: Farberov, S. (2025, February 9). The top 10 metros with the largest home price increases. Realtor.com.
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