The 10 U.S. States with the Fastest Rising Home Prices as of August 2024

The housing market in 2024 has surprised many with its resilience, especially in certain states where home prices continue to climb despite higher mortgage rates. As a buyer or investor, it’s crucial to stay informed about these trends to make the best possible decisions. In this blog, we’ll explore the top 10 states where home prices are surging the most this year.

1. New York: A Tale of Low Inventory

New York has seen a 6.3% increase in home values over the last year. Despite losing 143,000 residents in 2023, the state’s housing market is still strong, primarily due to low inventory. The number of homes available for sale is about 30% below the long-term average, pushing prices up even as people leave.

2. California: The Most Expensive State

California’s home prices have risen by 6.3%, making it the most expensive state to buy a home, with the typical house now valued at $783,000. A significant factor driving this is the lack of new home construction, with building permits at half of what they were at the peak of the last housing bubble in 2005. High permit fees, environmental regulations, and a business-unfriendly environment deter new construction, exacerbating the housing shortage.

3. Illinois: A Surprising Rise

Illinois has experienced a 7% increase in home prices, with values rising from $240,000 to $257,000. Despite ongoing population decline, particularly in Chicago, the lack of inventory is driving prices higher. The state currently has only 14,800 active listings, about 50% below the long-term average.

4. Ohio: Affordability Attracts Buyers

Ohio’s home prices have risen by 7.1%, with significant growth in cities like Cleveland, Toledo, and Columbus. Unlike other states on this list, Ohio is experiencing positive migration trends, with 29,000 net people moving to the state in 2023. The affordability of Ohio’s housing market is a key factor driving this growth.

5. Maine: A Market of Vacation Homes

Maine’s home prices have surged by 8.3% in the last year. The state’s market is heavily influenced by out-of-state buyers from places like Boston, driving prices higher, particularly in Portland. With 20% of homes in Maine being absentee-owned, the state’s housing market is unique, and prices continue to rise despite the limited local demand.

6. Rhode Island: Boston’s Affordable Neighbor

Rhode Island has seen home prices increase by 8.5% over the past year. The state’s housing market is closely tied to Boston, with many residents moving to Rhode Island for more affordable housing. This influx has driven prices up, especially in Providence, where homes are still about 30% cheaper than in Boston.

7. New Hampshire: A Collapse in Inventory

New Hampshire’s home prices have risen by 8.6%, driven by a severe shortage of available homes. With only 1,400 homes on the market, inventory remains about 60% below the long-term average, causing prices to climb.

8. Massachusetts: Limited Building, High Demand

Massachusetts has experienced an 8.7% increase in home prices, with significant growth in Boston and Worcester. The state’s strict zoning laws and low building permit rates have contributed to the housing shortage, keeping prices high.

9. New Jersey: The Exodus from New York

New Jersey’s home prices have surged by 9.4% over the last year. The state has seen an influx of residents from New York City, which has kept inventory low and prices high. With only 11,500 homes on the market, New Jersey’s housing market remains highly competitive.

10. Connecticut: The Hottest Housing Market in 2024

Connecticut tops the list with an 11.4% increase in home prices, making it the fastest-appreciating market in the country. The state’s proximity to New York and Boston, combined with a significant shortage of homes, has driven prices up dramatically.

Final Thoughts

As a buyer or investor, it’s essential to research your local market thoroughly. Understanding the trends in your area can help you make informed decisions in this challenging housing market. For detailed insights, consider using tools like the Reventure App, which offers data on inventory levels, price forecasts, and more, to help you navigate the market with confidence.

Empower yourself with the knowledge to make the best decision possible when it comes to buying a home in 2024.