The U.S. housing market is close to its highest value ever. The median sale price of a home sold in the second quarter of 2019 was $279,600, a 4.3% increase compared to the same period in 2018 and well above the market’s peak prior to the housing crisis.
While all but a handful of metropolitan housing markets have increased in value, some grew at an impressive rate relative to the national market. One market even gained nearly 25% in value in the last year.
Based on median single-family home price changes over the year through the second quarter of 2019 from the National Association of Realtors, 24/7 Wall St. reviewed the fastest growing housing markets. Single-family home price data for the 180 metropolitan areas reviewed came from the National Association of Realtors. Income data came from the U.S. Census Bureau’s American Community Survey.
Growing housing prices tend to reflect growing demand for homes in an area, usually tied to a healthy job market and a growing population and often the result of a steady economy. These are characteristics of some of the cities on this list. At times, however, the cost of living in these places — especially housing — can become too high. These are America’s 25 least affordable housing markets.
Many of the housing markets on this list do not fit the description of a highly in-demand housing market. These are places in the Northeast and Midwest that have long struggled economically in the post-industrial U.S. economy. They include cities like Elmira, New York and Youngstown, Ohio. Even after increasing in value in the past year, the typical home price in these places is less than $120,000 — among the lowest in the country.
It remains to be seen if the short-term growth in these markets represents a sign of economic revitalization or a temporary reversal of a continuing negative trend. If it is the former, these places have a lot of ground to make up. Based on population decline since 2000, both Elmira and Youngstown are among America’s fastest shrinking cities.
To identify the fastest growing housing markets, 24/7 Wall St. reviewed the largest change in median home prices over the 12 months through the second quarter of 2019. Single-family home price data for the 180 metropolitan areas reviewed came from the National Association of Realtors. Income data came from the U.S. Census Bureau’s American Community Survey.