Home Prices Up In Every Major Metro For The First Time Since 2022

ByTMN Editor January 21, 2025

For the first time since 2022, home prices are spiking in every one of the 50 largest U.S. metros.

December brought a swell in home prices, pushing every metro tracked by Redfin over the edge. That’s up from 41 metros in December 2023. Overall, prices increased 6.3% annually to a median of $427,670, the largest single bump in over a year.

Prices increased 15% YOY in Cleveland, the biggest increase among the 50 most populous metros, followed by Milwaukee, Philadelphia, Miami, and Chicago.

“Places that have long been known as affordable places to live, like Cleveland and Milwaukee, are now seeing double-digit price increases—and that’s after home prices skyrocketed during the pandemic,” said Redfin Senior Economist Elijah de la Campa. 

In a major turnaround from pandemic boom buying trends, three metros in Florida – Tampa, Orlando, and Jacksonville – prices rose the least. Builders have had free reign in some Southern states, leading to an uptick in new inventory that pushes competition down.

“Affordable housing havens have become harder and harder to come by; even places that saw some price relief last year, like Texas and Florida, are now seeing prices tick back up. Many people looking to move this year will likely opt to rent because it’s the more affordable option and rental affordability is expected to improve as more supply comes on the market,” de la Campa added.

Florida is also suffering from an insurance crisis that is turning potential buyers away from the state.

A demand boost has helped push prices higher as Americans acclimate to 7% rates. Mortgage applications for new home purchases increased 8.9% YOY last month. Overall lock volume was up 26% YOY, driven by an 18% increase in purchase locks.

“It gives me confidence that, even in this rate environment, which isn’t really much better than it was a year ago, you’re seeing an improvement in purchase lending,” Brennan O’Connell, director of data solutions at Optimal Blue, commented in an interview with The Mortgage Note.