15 U.S. cities where house prices are rising the fastest – New York and California are absent

The median price of single-family homes in the U.S. fell $19,400 in the last three months of 2022, though prices rose 4% overall for the year, new data shows.

While house price increases have subsided, prices have remained high in 90% of the 186 city areas surveyed by the National Association of Realtors (NAR). Of these, prices rose by double digits by almost a fifth, mostly in the South.

Here’s a look at the 15 most popular markets in the US right now in terms of price growth in 2022:

Of the 15 cities where home prices have risen the most, all but two are in the South and six are in Florida. This reflects the southern migration trend that has been underway since 2020 and is linked to a range of factors, including affordability, the rise of remote work, and the retirement of older Americans.

The urban area with the highest percentage of price increases is Farmington, New Mexico, where the median price for all homes is $261,200, well below the national average of $378,700.

A small city of less than 50,000 people is the only market where home prices have risen more than 20% in 2022.

At the other end of the spectrum, the metropolitan areas with the biggest price drops in 2022 were San Francisco and San Jose, California, where average housing growth declined by 6.1% and 5.8%, respectively.

Still, demand for homes remains strong even as rising mortgage costs are pushing buyers away, said Lawrence Yun, chief economist at NAR.

“Even with a projected decline in home sales this year, prices are expected to remain stable in the vast majority of markets due to extremely limited supply,” Yun says. “What’s more, there are signs that buyers are coming back as mortgage rates decline, even as inventory levels near historic lows.”

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