5 U.S. Cities Where Home Prices Have Increased the Most

Unfortunately, for many Americans, it's getting harder to become a homeowner. One reason is that mortgage rates have reached record highs, which drives up the total cost of a monthly mortgage payment. But home prices are also high, making it more difficult for hopeful buyers to buy a home at an affordable price. And if you live in a high-cost-of-living city, you face even more barriers due to rising home listing prices.

Housing prices have increased since September 2022

In its September 2023 Housing Market Report, Realtor.com examined recent housing data. Overall, housing inventory remains low, but year-over-year data shows that housing prices have continued to rise throughout the last year. Nationwide, prices increased 0.4% annually.

But in some areas of the country, median home prices are now much higher than at the same time the previous year. The following U.S. cities have seen significant home prices increase since September 2022.

1. Los Angeles, California

In Los Angeles, median listing prices have increased year over year by more than 23%. If you have dreams of owning a home in the Los Angeles metro area, which includes Los Angeles, Long Beach, and Anaheim, you should expect to pay up. As of September 2023, the median home price was $1,175,000. Even if you make a 20% down payment, you can expect to walk away with an expensive mortgage payment when buying a home in this costly area.

2. San Diego, California

San Diego is another city where home prices have increased. In the San Diego metro area, which includes San Diego, Chula Vista, and Carlsbad, the median home price was $1,050,000 in September 2023. That's an 18.2% increase compared to median home prices in September 2022.

This isn't surprising news, considering the average house price in California was $760,526 as of quarter three of 2023. This figure comes from The Ascent's research report on the average house price by state in 2023.

3. Richmond, Virginia

Richmond is another U.S. city that has seen a significant increase in home listing prices in the last year. If you plan to move here, you'll need a sizable housing budget. The median home price as of September 2023 was $439,000 -- which means the year-over-year increase was 15%. At that price, most buyers would likely need to finance their purchase with a mortgage.

4. Cincinnati, Ohio

Cincinnati is another metro seeing higher median home prices than a year ago. Realtor.com notes that the median home price in September was $373,000. While that may not seem expensive compared to some cities, it's a 14.6% increase compared to September 2022.

If you've been thinking of buying in the Cincinnati area, you may be able to find cheaper housing elsewhere in the state. According to The Ascent research, the average home price in Ohio was $220,031 as of quarter three of 2023.

5. Boston, Massachusetts

The Boston metro area, which includes Boston, Cambridge, and Newton, has also seen noticeable home pricing increases in the last year. In September 2023, the median listing price was $849,000 -- a 14.1% increase compared to last September. Before attempting to buy a house in Boston, you'll want to have a lot of money in the bank.

Don't give up on your homeownership goals

If you're feeling frustrated about the current state of the U.S. housing market, you're not alone. But don't give up on personal finance goals that you've set for yourself, like buying a home.

While you can't control home prices, you can keep saving until you're ready to buy. A larger down payment could help to make your monthly mortgage payments more affordable despite high interest rates, since you'd need to finance less of the home's cost.

Another option is to consider buying a home in one of the most affordable cities with low costs of living. If you're ready to start the home-buying process, check out our list of the best mortgage lenders.