Despite high mortgage rates discouraging many potential buyers, home prices in most major U.S. cities have continued their upward trend throughout 2024.

According to data from Redfin, the median home prices in the 50 largest U.S. cities have risen by 5.8% through November compared to 2023. This surprising growth highlights the resilience of the housing market, even in the face of challenging economic conditions.

Among these cities, Anaheim, California, recorded the highest increase, with home prices surging by 12.5%. Anaheim’s growth is driven largely by its proximity to Los Angeles, a major metropolitan area where high housing costs are pushing buyers into more affordable nearby markets. Similar trends can be observed in other metro regions located near major urban centers, such as Newark and Nassau County, close to New York City. These areas are experiencing spillover effects as prospective buyers seek cost-effective alternatives.

15 Metro Areas with the Fastest Home Price Growth in 2024 (According to Redfin):

• Anaheim, California: 12.5%
• Newark, New Jersey: 11.3%
• New Brunswick, New Jersey: 10.8%
• Nassau County, New York: 9.9%
• Providence, Rhode Island: 9.8%
• West Palm Beach, Florida: 8.6%
• Chicago: 8.6%
• Detroit: 8.5%
• San Jose, California: 8.5%
• Fort Lauderdale, Florida: 8.3%
• Milwaukee, Wisconsin: 8.1%
• Seattle: 8.1%
• Miami: 7.9%
• Cleveland: 7.5%
• Warren, Michigan: 7.5%

Anaheim's rapidly rising home prices reflect a persistent housing shortage that has been worsening in recent years. The city’s growing population, combined with limited housing availability, has created a severe crunch in the real estate market. Developers, focusing largely on high-end homes for above-moderate-income families, have left a significant gap in affordable housing options. This imbalance further exacerbates the challenges faced by middle- and low-income buyers in securing homes.

This trend isn’t unique to Anaheim. Cities across the country, particularly those near large urban hubs, are grappling with similar issues. As housing supply struggles to keep pace with demand, prices continue to rise, making homeownership increasingly out of reach for many Americans. Despite these challenges, the demand for housing remains strong, driven by factors such as population growth, limited inventory, and migration patterns that favor suburban and secondary metro areas.

The continued rise in home prices underscores the need for solutions to address housing shortages and improve affordability in both primary and secondary markets.