House Prices Are Rising Fastest in These Five Cities

The Chicago skyline is seen across Lake Michigan on February 18, 2024 in Whiting, Indiana.

All 20 cities analyzed by the S&P CoreLogic Case-Shiller National Home Price Index reported year-over-year home price hikes between January 2024 and January 2023, but only five saw increases above the 8 percent mark.

In January 2023, the U.S. housing market was still in the midst of a price correction triggered by the sudden drop in demand for homes, which was driven in turn by the jump in mortgage rates that followed the Federal Reserve’s aggressive rate-hiking to combat inflation. That housing market correction ended approximately in the spring of the same year, as historically low inventory contributed to keeping prices high and pent-up demand drove them back up.

The latest data recorded in the index shows that prices have since then surged in all of the 20 U.S. major metro areas monitored, including Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa and Washington.

These are the five cities where home prices have grown the fastest between January 2023 and January 2024. Newsweek contacted S&P Global for comment by email on Wednesday.

5. Chicago, IL

Home prices rose by 8.0 percent year-over-year in Chicago, Illinois. Between December 2023 and January 2024, prices dropped by 0.5 percent, a bigger slide than the one reported between December 2023 and November 2023, of -0.2 percent.

The latest Redfin data shows that the median sale price of a home in Chicago was $335,000 in February 2024, up by 6.3 percent year-on-year. Like much of the country, Chicago’s housing market is struggling with a historic shortage of homes which cannot keep up with current demand. This lack of supply is primarily due to severe underbuilding in the country in the years following the Great Recession of 2008-2009.

4. Charlotte, NC

In Charlotte, North Carolina, home prices rose by 8.1 percent year-over-year in January 2024, a slightly higher percentage than in Chicago. Month-over-month, prices dropped by a modest 0.1 percent in both January 2024 and December 2023 compared to the month before.

The median sale price of a home in Charlotte was $399,995 in February 2024, up by 8.1 percent year-on-year, according to Redfin. Prices in Charlotte are rising because of increased demand—mainly due to lower mortgage rates compared to last year—and a still-tight inventory, which is causing higher competition between aspiring buyers.

3. Detroit, MI

In Detroit, Michigan, home prices jumped by 8.2 percent year-over-year in January 2024. Month-over-month, the city reported a drop of 0.7 percent in home prices in both January 2024 and December 2023 compared to the month before.

The latest Redfin data show that the median sale price of a home in Detroit was $83,000 in February 2024, up by 15.3 percent year-on-year. While Detroit has some of the cheapest home prices in the country, the city’s housing market is experiencing a resurgence due to a renewed automobile boom driven by the production of electric vehicles in the automobile capital of the world.

2. Los Angeles, CA

Los Angeles, California, has seen the second-highest price increase year-over-year in January 2024, at 8.6 percent. Month-over-month, home prices rose by 0.1 percent in January 2024 and December 2023 compared to the month before.

The latest Redfin data show that the median sale price of a home in Los Angeles was $975,000 in February 2024, up by 5.9 percent year-on-year. Affordability has been a huge issue for years for Los Angeles residents, and demand remains higher than the availability of homes in the area.

1. San Diego, CA

San Diego experienced the highest price hike in the country between January 2023 and January 2024, for an 11.2 percent increase. Month-over-month, prices dropped by 0.8 percent between November 2023 and December 2023 only to shoot back up by 1.8 percent between December 2023 and January 2024.

The latest Redfin data show that the median sale price of a home in San Diego was $940,000 in February 2024, up by 10.0 percent year-on-year.

According to an analysis by moving company Qshark, the Californian city’s warm climate and job offers are attracting Americans to move to the area, pushing up housing demand and bringing up prices.

Related Articles

Start your unlimited Newsweek trial