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8 US Cities Where Home Prices Have Skyrocketed and the Housing Markets Exceed $1 Trillion

August 21, 2024

4 min Read

Written by Virginia Anderson

Edited by Caitlyn Moorhead

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You’ve likely noticed that home prices have increased in recent years. Rising interest rates, inflation and fewer homes being on the market contribute to escalating prices. However, a few markets aren’t seeing a mere increase in home prices — they’re seeing skyrocketing growth.

A recent Redfin survey found that eight metro areas now have trillion-dollar housing markets, up from four metro areas last year. Two other metros sit just below the trillion-dollar mark.

Rising home prices are a double-edged sword: Older homeowners are seeing an increase in their equity — a potential boost to their retirement funds — while first-time buyers find it impossible to find anything affordable. That leaves more people staying in lower-rate mortgages while younger would-be buyers are renting and hoping for mortgage rates to eventually fall.

Here’s the market value for each of the top eight metropolitan areas, the year-over-year change in their market value growth and the average amount it costs to buy a home.

New York

Total market value: $2,479,781,753,057
Year-over-year change in market value: 8.30%
Average home sale price: $850,000

Los Angeles

Total market value: $2,188,583,730,489
Year-over-year change in market value: 6.20%
Average home sale price: $1,098,000

Atlanta

Total market value: $1,287,842,232,673
Year-over-year change in market value: 5.10%
Average home sale price: $434,460

Boston

Total market value: $1,275,370,527,296
Year-over-year change in market value: 7.10%
Average home sale price: $830,000

Anaheim, California

Total market value: $1,118,903,198,701
Year-over-year change in market value: 12.10%
Average home sale price: $900,000

Chicago

Total market value: $1,078,649,184,844
Year-over-year change in market value: 8.50%
Average home sale price: $385,000

Washington, DC

Total market value: $1,053,880,089,173
Year-over-year change in market value: 6.80%
Average home sale price: $706,050

Phoenix

Total market value: $1,001,000,889,736
Year-over-year change in market value: 5.50%
Average home sale price: $451,000

Honorable Mentions in Home Market Value

These two additional metropolitan areas are quite close to having an aggregate market value above the $1 trillion mark, according to Redfin’s data.

San Diego

Total market value: $986,866,999,457
Year-over-year change in market value: 9.70%
Average home sale price: $1,020,000

Seattle

Total market value: $970,865,521,164
Year-over-year change in market value: 8.40%
Average home sale price: $855,000

Cities Aren’t the Only Places With Booming Home Values

Metropolitan areas have long been associated with high home values. However, suburban and rural areas are also seeing significant housing price increases. In fact, rural home price growth has exceeded that of urban and suburban areas, with average home values growing by 7% year over year, compared to 6% for urban cities and 6.8% for suburban areas.

Where Is Housing Price Growth Slowing?

While housing prices are rising pretty much everywhere, there are a few places where the growth isn’t quite as pronounced as in other metropolitan areas. In some Sunbelt states, year-over-year changes in home values are below the national average. Here’s a look at the states with the slowest home value growth.