T
he American Midwest is experiencing a surprising housing boom, with three of the five fastest-growing property markets in the nation. Milwaukee tops the charts with a 20 percent year-over-year price surge in February, pushing the median home sale price to $330,000 - the largest increase among America's 50 most populous metro areas. Detroit and Cleveland also feature in the top five hottest markets, with prices jumping 12.5 percent and 10 percent respectively.

    Despite a nationwide cooling in buyer demand that saw home sales drop 6.2 percent compared to last year, local realtor Katie O'Keefe notes a massive increase of demand in the Milwaukee market, completely changing common buying practices. Buyers are regularly waiving essential safeguards like inspections and appraisals just to secure properties.

    The market is now tight due to a lack of inventory, with Detroit experiencing the largest decline among major metros at 6.7 percent fewer listings than last February. "Years ago, I could search for a buyer and send a list of 30-50 available options," O'Keefe said. "Now there may be three to five homes available." This is a great time for sellers, she notes.

    The Midwest remains America's most affordable region for homebuyers, with Detroit maintaining the lowest median sale price at $180,000 and Cleveland following as the second most affordable at $217,750. Nationwide housing inventory climbed 10.7 percent year over year to reach its highest level since June 2020, but the data shows no signs of cooling in sight for the booming Midwest regions.

    In Detroit, Redfin Premier real estate agent Desiree Bourgeois described recently witnessing a property receive 10 competing offers, eventually selling for $50,000 above asking price with the buyer waiving their appraisal contingency. This is a risky move that leaves purchasers vulnerable if a property doesn't value as high as their offer.

    The bizarre market conditions come as nationwide home prices rose just 3.2 percent to $425,421 - the slowest growth recorded in six months. Home sale prices also skyrocketed in other former 'affordable housing havens', including Cleveland, Ohio, where prices rose 15 percent in the year to December 2024.