Even with high mortgage rates discouraging buyers, home prices climbed in most major U.S. cities in 2024.
In the 50 largest U.S. cities, median home prices are up 5.8% through November, compared with all of 2023, according to Redfin data shared with CNBC Make It.
Anaheim, California, saw the most growth, with home prices up 12.5%. Like other fast-growing markets, it’s close to a major city — Los Angeles — where expensive homes are pushing buyers into surrounding areas. Similar trends can be seen in other metro 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’s housing prices have steadily risen in recent years due to a persistent shortage of homes, with a growing population expected to further strain availability over time. Developers have also been building homes for above-moderate-income families, widening the gap and leaving many residents without affordable options, according to local outlet Voice of OC.
Limited housing is also driving up prices in the Northeast, particularly in Newark, New Brunswick and Nassau County near New York City. Remote work and high living costs are encouraging buyers to seek more affordable, commuter-friendly suburbs.
While home prices are rising in most major cities, San Antonio and Austin, Texas, stand out as 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 look for lower-cost alternatives outside more expensive markets.
The bottom line: Even with 30-year fixed mortgage rates hovering between 6% and 7% throughout 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 large cities, home to many of the nation’s wealthiest residents.
