The Cost of a Home Soared in Nearly 90% of US Cities, Study Shows
Homeownership Costs Rose in 201 of 226 Measured Metro Markets
The cost to own a home is up in nearly 90% of cities across the United States, a new study found. Homeownership costs rose in 201 of 226 measured metro markets in the 2024 fourth quarter, compared with the same period a year earlier, according to a report by the National Association of Realtors.
Double-Digit Price Gains in 14% of Metro Areas
Fourteen percent of the metro areas tracked posted double-digit price gains, up from 7% in the third quarter, as 30-year fixed mortgage rates ranged from 6.12% to 6.85%.
National Association of Realtors’ Chief Economist Weighs In
“Record-high home prices and the accompanying housing wealth gains are definitely good news for property owners,” said NAR Chief Economist Lawrence Yun in a statement this week. “However, renters who are looking to transition into homeownership face significant hurdles.”
The Midwest Leads the Way with Six of the 10 Metro Markets with the Largest Median-Price Increases
The Midwest is home to six of the 10 metro markets with the largest median-price increases. However, Jackson, Miss., led the way with a 28.7% surge.
New York’s Elmira Ranks Fourth with a 17.6% Price Hike
The only New York town to crack the top 10 was upstate Elmira, which finished fourth, boasting a 17.6% price hike.
Other Metro Areas with Notable Price Increases
The rest include Peoria, Ill., where prices rose 19.6%; Chattanooga, Tenn.-Ga., up 18.2%; Fond du Lac, Wis., up 17.6%; Cleveland-Elyria, Ohio, rising 16.4%; Bismarck, N.D. increasing 15.8%; Akron, Ohio, up 15.5%; and Canton-Massillon, Ohio, with a price increase of 14.9%.
Nationwide, the Median Home Price Rose 4.8% to $410,100
Compared to a year ago, the median price of a single-family home rose nationwide by 4.8% to $410,100. From 2019 to 2024, the median home price surged 49.9%, according to NAR.
The Most Expensive Markets are in California, with a Median Home Price of Nearly $2 Million in San Jose
Conclusion:
The study by the National Association of Realtors highlights the significant increase in the cost of owning a home in nearly 90% of US cities. As the demand for housing continues to rise, it is essential for policymakers to address the challenges faced by renters looking to transition into homeownership.
FAQs:
* What is the current state of the housing market in the US?
* What are the factors driving the increase in home prices?
* How do the results of this study impact renters looking to become homeowners?
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