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Home prices have skyrocketed in certain parts of the US in 2025.
If you’re trying to spot the hottest markets, we’ll reveal 12 locations where real estate values have surged the most.
Let’s explore what’s driving these increases and whether they’re worth investing in.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Wichita, where prices have surged 21.2% in one year
Wichita, Kansas, has seen some of the biggest jumps in home prices in 2024, with a 21.2% increase from 2023.
This makes it one of the fastest-growing housing markets in the country, as high demand and limited supply push prices higher.
Over the past five years, prices have risen by 69.1% from 2019 to 2024, showing steady and significant growth that has now hit record highs.
Homes are selling fast, with in-demand properties going under contract in just 19 days. Buyers are acting quickly because of strong competition and limited options.
There’s also a shortage of new homes being built. In 2023, only 1,255 new single-family home permits were issued, a 7.2% drop from the year before. With fewer homes being added to the market, buyers are left with limited choices, which is driving prices even higher.
Sources: Redfin, U.S. Department of Housing and Urban Development
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2) Toledo, where affordability drives a 16.4% rise
Toledo, Ohio, has seen a major boom in its housing market, with home prices rising by 16.4% year-over-year.
This significant growth highlights how high demand and limited supply have driven prices up rapidly in 2024.
One reason Toledo is so attractive is its affordability. The median sale price is just $125,000, a 2.0% increase from last year.
These lower prices compared to other cities are drawing in more buyers, especially those looking for affordable housing options.
Toledo is therefore benefiting from positive migration trends, as people move to the area for better opportunities and budget-friendly home options.
Sources: Redfin, U.S. Department of Housing and Urban Development, OECD, Federal Reserve Bank of Dallas, Neilsberg
3) Madison, where home prices jumped 15.3% in a year
In 2024, Madison,stood out for its remarkable 15.3% year-over-year increase in home prices.
The city’s median listing price hit $434,900 in February 2024, a 10.1% increase from last year.
This significant jump highlights Madison’s growing popularity among buyers seeking a balance between urban and suburban living.
Competition among buyers is intense, with homes receiving an average of 5 offers, which shows how quickly properties are being snapped up in this fast-paced market.
The rental market is equally strong, with the median sale price per square foot climbing to $247, a 10.3% increase year-over-year. This trend is drawing attention from investors looking for profitable rental opportunities.
Sources: Redfin, Norada Real Estate Investments, Realtor , Zillow, Badger Institute
4) San Jose, where tech demand pushed prices up 12.9%
San Jose’s housing market has experienced remarkable growth in 2024, with home prices climbing by 12.9% year-over-year.
The median home price reached $1,502,362 in April 2024, making it the highest in the country.
The influence of the tech industry is undeniable. High-earning professionals from companies in Silicon Valley are fueling demand, especially for premium properties, keeping competition fierce.
Homes are selling fast, with properties spending just 22 days on the market.
This rapid pace shows just how intense the competition is, with buyers purchasing homes as soon as they’re listed.
Sources: Redfin, Realtors , Norada Real Estate Investments, Zillow
Our team has made this infographic to show the U.S. real estate markets with the highest and lowest value growth over the past decade, which is useful if you’re considering investing in American real estate.
5) New Haven, where prices climbed 12.8% in a year
New Haven has seen a big jump in its housing market in 2024, with home prices rising by 12.8% compared to last year.
Over the past five years, prices have risen by an incredible 62.3%, reflecting steady and long-term growth.
This trend highlights New Haven’s increasing appeal to both homebuyers and investors looking for strong returns.
New Haven’s economic diversity is a major factor in its rising market. The city is home to Yale University, which attracts academics, students, and professionals, while its growing biotech sector is drawing even more high-income buyers.
The city’s historical charm is another big draw. With unique character-filled homes, New Haven attracts buyers who want something special and different from standard modern builds.
Sources: Forbes, Realtors , Redfin, Norada Real Estate Investments, Yale Insights
6) Miami, where luxury sales drove a 12.6% price increase
In 2024, Miami’s housing market has stood out with home prices rising 12.6% compared to last year.
The luxury market is booming, with luxury condo sales up 122.2% since pre-pandemic levels.
High-end waterfront properties are especially popular, attracting wealthy buyers who are driving up prices.
Miami’s market has also been reshaped by an influx of high-income residents, adding a $10 billion boost to household income by 2022.
The city’s international appeal plays a big role here, with foreign buyers and investors drawn to Miami’s lifestyle and global reputation, keeping demand strong and the market competitive.
Sources: Redfin, The World Property Journal , Miami Realtors, Norada Real Estate Investments, Zillow
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7) Buffalo, where revitalization boosted prices by 12.2%
Buffalo’s housing market has seen impressive growth in 2024, with home prices rising by 12.2% compared to last year.
One of Buffalo’s biggest draws is its affordability. The average sale price in April 2024 was just $231,596, making it an attractive option for buyers priced out of larger, more expensive markets.
The city’s ongoing urban revitalization is also playing a key role.
New development projects in downtown Buffalo are drawing in residents and boosting the appeal of the area, particularly for younger professionals.
Buffalo’s climate resilience adds another layer of attraction. Unlike many coastal cities, Buffalo faces a lower risk of natural disasters, which has become an important factor for buyers looking for long-term stability.
Sources: Norada Real Estate Investments, Yahoo Finance, City of Buffalo , Zillow
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8) Grand Rapids, where home prices have risen 12% in a year
Grand Rapids has become a thriving market in 2024, with home prices climbing by 12% compared to last year.
Home prices have gone up by 64.4% in the last five years. This steady rise has made it a favorite for both homeowners and investors looking for strong returns.
The city’s economy is booming, with the healthcare and technology sectors growing rapidly.
Grand Rapids is also a magnet for millennials, ranking as one of the best cities for young professionals.
Its mix of job opportunities, vibrant culture, and affordable living is pulling in a younger crowd looking to settle down.
Sources: Redfin, Bureau of Labor Statistics, Realtors, Federal Reserve Bank of Dallas, Norada Real Estate Investments
9) Las Vegas, where migration fueled a 7.3% price increase
Las Vegas has seen strong growth in its housing market in 2024, with home prices rising by 7.3% compared to last year.
The city’s population is growing, with the metro area reaching 2,953,000 residents in 2024, marking a 1.86% increase from 2023.
This is partly due to migration from more expensive states like California, driving up demand for homes and keeping the market competitive.
Las Vegas also benefited from a tourism rebound, with the recovering hospitality sector creating jobs and attracting workers who need housing.
New master-planned communities are bringing in families and professionals with their modern amenities and well-designed neighborhoods, giving the housing market an extra boost.
Sources: Redfin, Norada Real Estate Investments, Statista, Neilsberg, United States Census Bureau
10) Hartford, where intense competition makes it the hottest market
Hartford has emerged as a standout in the U.S. housing market, ranking as the nation's hottest housing market in June 2024.
Homes in the city get 4.4 times more views than the national average, showing intense interest and fierce competition.
A big reason is Hartford’s affordable prices. The median listing price is $450,000, much lower than many other cities in the Northeast.
That makes it a popular choice for buyers looking for a better deal.
Also, the city’s growing job market, driven by industries like insurance and healthcare, is bringing in more people who need housing, adding to the demand.
Sources: Redfin, Zillow, Norada Real Estate Investments, Federal Reserve Bank of New York , Realtor
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11) Manchester-Nashua, where tech growth drives a red-hot market
Manchester-Nashua, New Hampshire, has become a standout housing market in 2024, earning the title of the second hottest housing market in June.
Homes in the area are drawing significant attention, with listings getting 3.3 times more views than the national average.
The city’s growing tech scene, with more startups and tech companies setting up shop, is fueling economic growth and driving up housing demand.
More importantly, Manchester-Nashua also offers a high quality of life, consistently being ranked as one of the best places to live in the U.S.
This reputation is attracting new residents looking for a better balance between work and lifestyle.
Sources: U.S. Economic Development Administration, Norada Real Estate Investments, Federal Reserve Bank of New York , Realtor, U.S. Department of Housing and Urban Development
12) New York City, where demand keeps prices growing by 3.9%
New York City’s housing market grew by 3.9% in 2024, showing how strong demand remains in one of the country’s most desirable cities.
As the nation’s largest job market, New York attracts workers from industries like finance and tech, driving constant demand for housing near jobs.
The city’s limited housing supply remains a key challenge.
Strict zoning rules and high construction costs have kept the vacancy rate at a historic low of 1.4%, making homes even more competitive.
New York’s cultural appeal adds to its draw. Iconic landmarks, world-class amenities, and diverse neighborhoods make it a top choice for buyers seeking a vibrant lifestyle.
Sources: Redfin, Forbes , Federal Reserve Bank of New York , City of New York, U.S. News
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So, why have home prices exploded in these 12 places? It's all about demand and limited supply!
Home prices have surged in these 12 locations due to a combination of high demand and limited supply. Each city has unique factors driving this trend, but the common thread is a strong interest from buyers and not enough homes to meet that demand.
Take Wichita, for example, where prices jumped 21.2% in one year due to high demand and a shortage of new homes. Similarly, San Jose saw a 12.9% increase fueled by the tech industry's influence, while Miami's luxury market drove a 12.6% rise in prices. These cities are experiencing rapid growth because they offer something unique, whether it's job opportunities, affordability, or lifestyle appeal.
In places like Toledo and Buffalo, affordability and revitalization efforts are attracting buyers, while cities like New York and San Jose are benefiting from strong job markets and limited housing supply. The combination of these factors creates a competitive environment where prices are pushed higher. So, if you're considering investing in these markets, it's crucial to understand the local dynamics and do thorough research.