The 10 cities in the United States where house prices are rising the most in 2023
A new study has identified the ten housing markets that have seen the highest housing market, three of which are in California.
Many young people in the United States are worried if they will ever be able to purchase a home, one of the best ways of accumulating wealth. The high cost of real estate, combined with salaries that have not kept pace with prices in the housing market, makes acquiring property difficult. This is especially true in certain cities where the gap between income and housing prices is even greater.
For decades, major cities in the US have undergone a period of intense gentrification, driving up prices even further and forcing local communities who had lived in these neighborhoods to seek more affordable options, if they are even available. This displacement can have devastating personal consequences. Those lucky enough to have owned their homes and been able to sell may have been able to purchase in a cheaper housing market, but today, those are few and far between.
Realtor.com carried out a study that examined the increases in property prices over the last twelve months in the United States to identify the ten markets where prices have risen most.
California, the leader in price increases
The study has left several factors clear. The first is that much of the country has been impacted by price increases, going beyond metropolitan areas to include towns as well.
The city that has experienced the most significant rise is none other than Los Angeles. California’s largest city, LA, has seen home prices rise around 23.8 percent since September 2022. Three cities from the Golden State top the list.
The 10 cities with the greatest increase in housing prices
- Los Angeles, California: (23.8%)
- San Diego, California: (18.2%)
- Richmond, California: (15%)
- Cincinnati, Ohio: (14.6%)
- Providence, Rhode Island and Massachusetts: (14.6%)
- Boston, Massachusetts: (14.1%)
- Columbus, Ohio: (12.1%)
- Rochester, New York: (11.4%)
- Chicago-Naperville, Ilinois (10.4%)
- Indianapolis, Indiana (10%).
As interest rates sit at the highest level in over a decade, many who may be able to buy often find that once the price of their mortgage is tacked on, they are priced out of the market. However, as interest rates come down, some analysts worry that this could drive home prices up since more buyers will see they may have a chance to get back into the market. To bring housing prices down, the supply of houses must increase, and that requires either building additional properties (unlikely when interest rates make borrowing more expensive) or vacant houses must be placed on the market.