The Top 10 Metros With the Largest Home Price Increases

by Snejana Farberov

An overwhelming majority of U.S. metros experienced upticks in home prices at the end of last year, with 10 cities boasting the largest gains of at least 14.9%, according to the National Association of Realtors® quarterly report.

Half of the top 10 metros with the most sizable year-over-year median price increases were clustered in the Midwest, and the rest were spread out around the South and the Northeast.

“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,” says Realtor.com® senior economic research analyst Hannah Jones. “Unfortunately, one effect of strong demand is climbing home prices, as was the case in these markets over the last year.”

High demand in these 10 markets has kept inventory well below pre-pandemic levels, sending prices surging as buyers jockeyed for homes, according to Jones.

Jackson, MS, was the biggest winner of the fourth quarter, with the median price for single-family homes surging 28.7% compared with the same period in 2023, and closing out the year at $251,600.

“Record-high home prices and the accompanying housing wealth gains are definitely good news for property owners,” NAR Chief Economist Lawrence Yun said in a statement. “However, renters who are looking to transition into homeownership face significant hurdles.”

Peoria, IL, ranked a distant second in terms of year-over-year price gains, with 19.6%, with a typical home in the city on the Illinois River costing $172,500.

A second Southern entry, Chattanooga, TN, saw local home prices go up 18.2% between the fourth quarter of 2023 and the fourth quarter of 2024. At the end of last year, the median price in the city was $346,700.

Elmira, NY—the lone Northeastern metro on the top 10 list—and Fond du Lac, WI, both saw median home prices spike by 17.6% year over year, settling at $167,800 and $263,800, respectively.

“The Midwest is the most affordable region in the country, which has enabled buyer demand to hold steady despite affordability headwinds,” Jones says. “As a result, many Midwest towns have seen home prices climb significantly as buyers compete for available inventory.”

While buyers in much of the country have taken to the sidelines, put off by mortgage rates near 7%, the Midwest has been steadily drawing buyers seeking affordable housing near bustling business centers.

Home prices were up in 9 of 10 metros

Overall, 89% of 226 U.S. metro markets registered home price increases in the fourth quarter, according to NAR’s latest report.

Compared with a year ago, the national median single-family existing-home price was up 4.8%, to $410,000. It is noteworthy that between 2019 and last year, the median price skyrocketed nearly 50%.

Regionally, the South logged the largest share of single-family home sales in Q4 (45.1%), with a 2.1% price increase. Prices also moved up in the Northeast (10.6%), the Midwest (8%), and the West (4%).

Eight of the 10 priciest markets in the U.S. were in sunny California, with a median home price in San Jose surging close to 10%, to $1.9 million.

The silver lining for would-be homebuyers

Fortunately for homebuyers, 11% of the metros saw price declines during the same period.

“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,” Yun said.

Housing affordability also saw a slight improvement, as the monthly mortgage payment on a typical home with a 20% down payment inched down 1.7%—or $37—to $2,124 from the same time last year.

Here’s a look at the 10 metros with the largest home price increases: