The days of snagging a budget-friendly home in Cleveland, Milwaukee or other affordable housing hubs around the nation might be gone for good.
New data from Redfin reveals home prices in some of these markets are climbing at breakneck speed, leaving locals and hopeful buyers scrambling for something within their reach.
Cleveland leads the pack, with home prices surging 15% in the year leading up to December 2024 — the largest increase among the nation’s 50 biggest cities.
Milwaukee (14.5%), Philadelphia (14%), Miami (11.8%), and Chicago (11.1%) are close behind, as double-digit price hikes hit cities once celebrated as havens for more affordable living.
Nationwide, home prices rose in all 50 of the largest metro areas for the first time since May 2022, with the typical home now costing $427,670.
Redfin economist Elijah de la Campa explained the shift, saying, “Affordable housing havens have become harder and harder to come by; even places that saw some price relief last year, like Texas and Florida, are now seeing prices tick back up.”
Cleveland’s red-hot housing market is emblematic of this trend.
“A lot of sellers have a very specific number in mind because they saw their neighbor sell for $40,000 over the asking price during the pandemic,” Bonnie Phillips, a Redfin Premier agent in Cleveland, said in the study. “They’re willing to walk away if they don’t get that number, which is one factor keeping prices high.”
For buyers, this means dashed dreams of charming homes in sprawling suburbs.
Phillips added, “Cleveland may still have a reputation as an affordable-housing haven among out-of-staters, but not so much among locals. Many families have been priced out, and those who can still afford to buy have to move to neighborhoods they don’t really want to live in.
“Their dream of owning a beautiful farmhouse on 1.5 acres has shifted to a reality of a small home in an urban area.”
The spike in prices comes as buyers adjust to elevated mortgage rates, which currently hover around 7%. Redfin reports the combination of high borrowing costs and tight inventory is fueling the increase, even as affordability remains strained.
Meanwhile, former COVID-era hotspots like Florida and Texas are seeing more modest price increases.
Tampa recorded the smallest gain among major cities at just 0.5%, followed by Orlando (1.3%), Jacksonville (1.3%), Austin (1.5%) and San Antonio (1.6%).
These states have been building homes at a rapid pace, which has helped temper price growth. But Florida’s housing market faces additional headwinds as buyers shy away, citing rising insurance premiums and climate risks.
Combined with the already high cost of homes, demand in the Sunshine State is cooling off.