Where have housing prices increased the most in 2023?

From January to November, Zillow data shows that the average price of a single-family home in the United States increased by three percent or $10,660 from $355,235 to $365,895. The average mortgage and rental payment rose by 0.5% in November, driven by shelters, according to the Bureau of Labor Statistics. Renters have not been spared from the surge seen in many housing markets, with the average lease soaring 6.5 percent over the last year. The Federal Reserve held the federal funds rate steady in December, and if inflation continues to come down, the central bank could begin to bring rates down in the new year. Fed Chair Jerome Powell has stated that it is too soon to tell whether or not rates can begin to come down and that the bank is prepared to raise rates further should the committee believe such a move necessary to bring prices down.

However, not all markets have seen the same growth, with a handful of states and the District of Colombia witnessing a fall in prices:

Nevertheless, as mortgage rates and supply became extremely limited, many buyers saw prices tick up, untimely forcing some out of the market. Still, with fewer houses being built and high rates leading many to hold on to their property, prices did not come down as demand began to fall. Some of the smallest states in terms of population saw the largest increases: Connecticut (9.5 percent), Maine (8 percent), and New Hampshire (7.7 percent).

Where are prices highest and lowest?

When looking at the most expensive housing markets in the US, Hawaii ($973,049), California ($763,880), and the District of Columbia ($712,992) top that list, followed by:

On the other end of the spectrum, the most ‘affordable’ markets are found in: