(NewsNation) — Home prices are rising in every major U.S. city, and once-affordable havens across the Midwest are seeing the fastest gains.
Cleveland’s median home sale price rose 15% in December from a year earlier — the biggest increase among the 50 most populous metros, according to a new Redfin report.
“With affordability so strained, buyers are feeling empowered to ask for discounts, but they’re often getting shut down by sellers — even for small asks,” Bonnie Phillips, a Redfin Premier real estate agent in Cleveland, said in the report.
Phillips added, “Many families have been priced out, and those who can still afford to buy have to move to neighborhoods they don’t really want to live in.”
Milwaukee saw the second-fastest price growth year-over-year (14.5%), followed by Philadelphia (14%), Miami (11.8%), Chicago (11.1%) and Warren, Michigan (10.3%).
December marked the first time since May 2022 that home prices were higher in all 50 of the most populous U.S. metros, Redfin said.
Nationally, home prices posted their biggest gain in nearly a year, jumping 6.3% from December 2023 to December 2024 to a median of $427,670.
Even in areas where home prices had been cooling off, like Florida and Texas, prices jumped in December, according to the report.
Redfin attributed the rise to a shortage of homes for sale and the fact that “buyers have grown accustomed to elevated mortgage rates.”
“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,” Redfin senior economist Elijah de la Campa said in a statement.
In dollar terms, the median sales price in midwest cities like Cleveland ($229,900), Milwaukee ($320,000) and Chicago ($340,000) was still far below the national average ($427,670) in December, according to Redfin.
While the year-over-year price gains are slower, the most expensive housing markets are all in California. San Jose led all major cities with a median sales price of $1,489,000 last month. Next came San Francisco ($1,400,000), followed by Anaheim ($1,146,500), Los Angeles ($905,250) and Oakland ($905,000).
The 10 metros where the median sale price rose the fastest from a year ago, according to Redfin:
- Cleveland: 15.0%
- Milwaukee: 14.5%
- Philadelphia: 14.0%
- Miami: 11.8%
- Chicago: 11.1%
- Warren, Mich.: 10.3%
- Nassau County, N.Y.: 10.0%
- Baltimore: 10.0%
- West Palm Beach, Fla.: 9.2%
- New Brunswick, N.J.: 9.1%
The 10 metros with the highest median sale price in December, according to Redfin:
- San Jose, Calif.: $1,489,000
- San Francisco: $1,400,000
- Anaheim, Calif.: $1,146,500
- Los Angeles: $905,250
- Oakland, Calif.: $905,000
- San Diego: $880,000
- Seattle: $789,000
- New York: $735,000
- Boston: $722,975
- Nassau County, N.Y.: $715,000