Recent data indicates that home prices in the U.S. have surged by 37.5% in the past five years. Realtor.com’s latest housing reports for May 2019 through May 2024 shed light on this trend, shaped by record-high prices and increasing mortgage rates.
The top 10 cities identified by Realtor.com, including coastal areas and music hubs, showcase where the housing markets are on fire, offering potential both for buyers and investors, with challenges amid escalating prices. Ralph McLaughlin, Senior Economist at Realtor.com, mentioned that homeowners gained significant equity over this period.
Analysis by Realtor.com reveals that limited home availability across regions is a key driver of the soaring prices, with five out of ten metros showing a price surge exceeding 50%.
Nashville, Tennessee
Leading the pack, Nashville experienced a whopping 57.1% surge in home prices, with median prices now at $588,000, up from $375,000.
Los Angeles, California
Los Angeles saw its median home prices skyrocket by 55.1%, from $805,000 to $1,248,000.
Providence, Rhode Island
Providence clinched the third spot, with a remarkable 54.2% increase, pushing home prices from $380,000 to $586,000.
Austin, Texas
Austin witnessed a 53.3% surge in prices, with median home prices escalating from $371,000 to $565,000.
Memphis, Tennessee
Memphis entered the top five with a 52.1% price hike, elevating prices from $230,000 to $350,000.
Tampa Florida
Ranked sixth, Tampa recorded a 49.6% price surge, rising from $284,000 in 2019 to over $425,000 in 2024. A study also highlighted Tampa as a sought-after city for millennial homebuyers.
San Diego, California
In San Diego, median house prices surged by 49.5%, from $717,000 to $1,072,000.
Boston, Massachusetts
Boston saw median home prices spike by a significant 49.4%, climbing from $620,000 to $900,000.
Las Vegas, Nevada
Las Vegas witnessed a 49.1% increase in home prices, with the current median price soaring from $320,000 to $477,000 in five years.
Hartford, Connecticut
Hartford, Connecticut’s capital, secured the tenth spot, with median home prices leaping from $200,000 in 2019 to $447,000 in 2024, marking a 49% increase.
A separate analysis by Freddie Mac highlighted the robust growth in housing demand in midwestern and southern states. Maine and South Dakota, in particular, saw substantial increases in housing demand, with growth rates of 31.1% and 28.8%, respectively, compared to 2023 application rates.