Top 10 Metro Areas In The US With The Highest Home Price

Rosemary November 01, 2021 | 17:07

Where is the place where home price increases the most in the US? Check out Top 10 Metro Areas In The US With The Highest Home Price.

Top 10 Metro Areas In The US With The Highest Home Price. Photo KnowInsiders

According to CoreLogic's Home Price Insights report, 10 metro areas with the highest home price increases from August 2020 to August 2021 are:

1. Phoenix - up 30.9 %

2. San Diego - up 23.2 %

3. Las Vegas - up 22.2 %

4. Denver - up 19.5 %

5. Los Angeles - up 14.9 %

6. Houston - up 13.6 %

7. Washington - up 13.3 %

8. Boston - up 11.8 %

9. Miami - up 11.8 %

10. Chicago - up 9.9 %

Photo AZ Central

1. Phoenix

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 18.6% annual gain in June, up from 16.8% in the previous month. The 10-City Composite annual increase came in at 18.5%, up from 16.6% in the previous month. The 20-City Composite posted a 19.1% year-over-year gain, up from 17.1% in the previous month.

Phoenix, San Diego, and Seattle reported the highest year-over-year gains among the 20 cities in June. Phoenix led the way with a 29.3% year-over-year price increase, followed by San Diego with a 27.1% increase and Seattle with a 25.0% increase. All 20 cities reported higher price increases in the year ending June 2021 versus the year ending May 2021.

“Looking at the markets experiencing the highest price growth, we have seen large migration to states with no income tax, including Florida, Washington, Nevada and Texas,” said Chris Stroud, co-founder and chief of research at HouseCanary. Of the 25 metro areas on the list, 10 are based in Florida.

“There is a general migration pattern toward southern, southwestern and mountain states,” Stroud said. “While these themes were present before COVID-19 hit the U.S. in spring 2020, they have significantly accelerated as the pandemic has altered the way many Americans work and live.”

Only two metro areas on the list — Atlantic City, New Jersey, and Lebanon, New Hampshire — are located outside of the Southern and Western U.S.

2. San Diego

San Diego’s home price increased at its fastest pace of the pandemic in July — up 27.8 percent in a year.

It was the second-largest price gain in the nation, the S&P CoreLogic Case-Shiller Indices reported, and the biggest increase for the San Diego metropolitan area since December 2004. Phoenix remained at the top of the 20-city list with a 32.4 percent increase in a year.

3. Las Vegas

Home prices increased again in September as the market showed signs it is starting to stabilize, according to Las Vegas REALTORS (LVR).

The median home price increased to $406,500, just $1,500 over August prices. The increase established yet another record for the valley.

The median home price is up 20.5% from $337,250 one year ago.

The median price of local condos and townhomes sold in September was $230,000. That’s also an all-time record, up 17.6% from $195,000 in September of 2020.

4. Denver

House prices in Denver continued their hot streak in July, hitting an all-time high for year-over-year gains, the S&P CoreLogic Case-Shiller home price index reported Tuesday.

Denver’s home price index increase of 21.3% made it one of seven U.S. cities to record their highest-ever 12-month gains. The other cities were New York, Boston, Charlotte, Cleveland, Dallas and Seattle, according to the index.

5. Los Angeles

The median home price in Los Angeles County has increased by 11.60% as compared to the previous month and home sales have increased by 37.5%.

In August 2020, the six-county region’s median price reached $640,000, up 12.9% from a year earlier. In Los Angeles County, existing single-family home sales dropped by 3.9% from July and fell by 5.2% from August 2019. The median price rose by 7.9% from a year earlier to $677,260. Orange County sales the biggest jump in sales (13.7%) from a year earlier. The median price rose by 14.8% from a year earlier to $930,000., Norada Real Estate Investment reported.

The Metro Los Angeles housing market posted a year-over-year increase of 4.4% in sales. Compared to July, sales decreased by 1.7%. The median home price of the LA metropolitan region rose to $615,000, up 12.8% from last year. Compared to July, the median price increased by 4.2%. The sales figures are still lagging if we compare them to last year. The rise in home prices and sales has shifted the market conditions to a balanced one. The inventory remains tight. The Unsold Inventory in Los Angeles Metro Area is 2.3 months.

6. Houston

The Houston area notched a moderate increase, 68%, in the median home price from 2011 ($154,500) to 2020 ($260,000). By the numbers, some 58,223 homes were sold in Houston in 2011, with 99,339 sold in 2020 - a whopping 71% increase. The average price per square foot in 2011 was $83; in 2020, the price jumped to $133.

7. Washington

In Washington State, the median home price is $522,023 and requires a minimum income of $112,295 just to qualify for a mortgage. With that stat alone, more than 72% of Washington’s approximate 3 million households are priced out already.

“Legislators are considering a number of bills this session that will significantly increase the cost of new homes,” said Tracy Doriot, 2021 president of the Building Industry of Washington. “Many of the bills have worthy goals. However, they also have significant consequences.”

8. Boston

The Greater Boston housing market is hot with rising prices as we enter into the fall of 2021. The sky-high prices, combined with a historic scarcity of housing supply in this region, reflect a sizzling seller's market. But we are starting to see some price adjustments, and some inventory is starting to sit on the market for a little bit longer. Buyers are grabbing whatever they can find, especially single-family homes in suburban towns, because they are desperate for space and are aided by low interest rates.

After months of U.S. home prices rapidly accelerating, new figures show the growth is slowing — not that bargain hunters are ready to whip out their wallets.

U.S. home prices rose 19.8 percent year-over-year in August, after July’s 19.7 percent annual increase, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. The leveling off comes after four straight months of record-setting, increasing growth.

9. Miami

Miami’s housing market has been one of the hottest since the start of the pandemic, as buyers from around the country have descended on the city for added space and warm weather in the WFH world.

Strong demand for condos and single-family homes and dwindling supply pushed prices higher, and now Miami has overtaken Los Angeles as the second most expensive housing market in the U.S., according to the latest report from RealtyHop.

In Miami-Dade County, the median sales price for a house grew to $515,000 in April, a 5% increase from $491,250 in March, according to the latest Miami Realtors Association sales report.

10. Chicago

The Chicago-area housing market has continued to boom through the spring and summer, new data shows — but it might be easing up somewhat.

In the nine-county Chicago metro area, the median home sale price from January to June rose to $300,000, up about 16.3% over the first six months of 2020, according to Illinois Association of Realtors data made public this month, cited Chicago Tribune.

About one-third fewer homes were listed for sale between March and June, and they were on the market for 38% less time, the data shows.

In addition to home prices continuing to move higher, rents will continue to rise as well, the analysts said, and regulatory efforts from the White House, Congress or individual states or municipalities to alleviate the housing shortage may not be enough.

Political wills have been at odds over efforts that would relax zoning rules and other regulatory constraints that have slowed homebuilding for decades. That's in spite of economic research that shows such efforts would boost supply and lower home prices and rents, according to the report.

Some successful efforts include California's recent abolition of single-family zoning in the state, which could mean that the 60,000 new single-family homes permitted in the state each year, could become thousands of additional units, the report noted.