Anaheim, California leads the pack as one of the Top 15 U.S. Cities with the Highest Home Price Increase in 2024, according to Redfin data shared with CNBC Make It. Despite high mortgage rates deterring potential buyers, median home prices in the 50 largest U.S. cities have surged by 5.8% through November compared to the previous year.
The Rising Stars
Anaheim, California, takes the top spot with an impressive 12.5% increase in home prices. This growth can be attributed to its proximity to the bustling city of Los Angeles, where expensive housing prices are driving buyers to seek more affordable options in surrounding areas. Similar trends are observed in other metro areas near major cities like Newark, New Jersey, and Nassau County, New York, where home prices have also skyrocketed.
The Housing Crunch
Anaheim’s housing market has experienced a steady rise in prices due to a persistent shortage of homes. With a growing population expected to further strain availability, many residents are left without affordable housing options. Developers catering to above-moderate-income families have contributed to widening the affordability gap, exacerbating the issue.
Limited housing availability is also a driving force behind rising prices in the Northeast, particularly in cities like Newark, New Brunswick, and Nassau County near New York City. Factors such as remote work opportunities and high living costs are prompting buyers to explore more affordable and commuter-friendly suburbs to meet their housing needs.
Market Exceptions and Shifts
While most major cities are experiencing a surge in home prices, cities like San Antonio and Austin, Texas, have seen prices remain relatively flat. In contrast, Rust Belt cities such as Milwaukee, Detroit, and Cleveland, traditionally known for their affordability, are witnessing increased demand as buyers seek more budget-friendly alternatives outside pricier markets.
Despite 30-year fixed mortgage rates hovering between 6% and 7% for much of 2024, demand from wealthier buyers has outpaced the limited housing supply, propelling prices upwards even amidst slower sales. This trend is particularly pronounced in large cities, home to a significant portion of the nation’s affluent residents.
In a world where owning a home is becoming increasingly out of reach for many, it’s crucial to stay informed about the ever-evolving real estate landscape. Whether you’re a first-time buyer, a seasoned investor, or simply curious about the market trends, knowledge is power when it comes to navigating the complex world of real estate. So, keep your finger on the pulse and your eyes peeled for opportunities in this dynamic market.
