T
he era of snagging an affordable home in cities like Cleveland, Milwaukee, and other budget-friendly hubs may be coming to a close. New data from Redfin reveals that home prices in these markets are skyrocketing at an alarming rate, leaving locals and potential buyers struggling to find something within their means.
Cleveland is leading the charge, with home prices surging 15% over the past year – 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 for their affordability.
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 attributes this shift to affordable housing havens becoming increasingly scarce, even in places like Texas and Florida that saw some price relief last year.
Cleveland's red-hot market is emblematic of this trend, with sellers holding out for high prices due to the pandemic-fueled frenzy. For buyers, this means dashed dreams of charming homes in sprawling suburbs. The typical home now costs $427,670, driven by a combination of limited housing supply, sellers' expectations, and elevated mortgage rates.
Cities like Cleveland and Milwaukee are becoming inaccessible for many locals, forcing them to settle for less desirable neighborhoods. As one Redfin agent notes, "Cleveland may still have a reputation as an affordable-housing haven among out-of-staters, but not so much among locals." The spike in prices comes as buyers adjust to elevated mortgage rates, which currently hover around 7%.
In contrast, home prices in Florida and Texas are seeing more modest increases, with Tampa recording the smallest rise at 0.5%. These states have been building homes at a rapid pace, but Florida's housing market faces additional headwinds due to rising insurance premiums and climate risks, cooling demand in the Sunshine State.
