Map Shows States Where House Prices Are Rising Fastest

01/08/2025

Giulia Carbonaro

Even as the country faces a growing affordability crisis, which has squeezed many first-time homebuyers out of the market, home prices are still on the rise across much of the U.S., according to a recent report by First American Data & Analytics.

In November 2024, the latest data made available by the company, home prices were down by 0.1 percent compared with October but up 3.9 percent compared with a year earlier.

Why It Matters

Home prices have skyrocketed in the past four years and are now 54.7 percent higher at a national level than before the pandemic. This affordability crisis has been brought about by a combination of pent-up demand and a lack of inventory, which has led to bidding wars between willing homebuyers.

When mortgage rates rose significantly in the post-pandemic years, aspiring homebuyers faced yet another financial hurdle. Despite the fact that demand has recently dwindled across the country due to the widespread lack of affordability, prices have remained historically high, propped up by a chronic supply shortage.

What To Know

While home prices rose in most areas of the country in November, compared with a year earlier, some states have seen steeper hikes than others.

Here's a list of the top 10 states with the highest year-over-year price increases in November, according to First American Data & Analytics:

• Wyoming, 12.3 percent

• Maine, 9.7 percent

• Connecticut, 9.5 percent

• Montana, 8.4 percent

• West Virginia, 8.3 percent

• New Jersey, 8.1 percent

• Idaho, 7.5 percent

• Rhode Island, 7.3 percent

• Kentucky, 7.1 percent

• North Dakota, 7.1 percent

The 10 states where prices dipped or rose at the slowest pace were:

• South Dakota, -4.4 percent

• Florida, -1.3 percent

• District of Columbia, 0.6 percent

• Arkansas, 1.8 percent

• Arizona, 1.9 percent

• Colorado, 2 percent

• Texas, 2.4 percent

• California, 2.5 percent

• Indiana, 2.6 percent

• Hawaii, 2.7 percent

What People Are Saying

Mark Fleming, chief economist at First American, said in a statement accompanying the November report: "After a nearly year-long slowdown, national house prices re-accelerated modestly for the first time since December 2023 on an annualized basis, but remain in line with historical norms.

"As the housing market adjusts to the new normal of higher mortgage rates, buyers and sellers are gradually returning, supported by a healthy labor market and more homes for sale compared to last year. The result is steady, single-digit house price growth, reflecting a market returning to normal following the pandemic-to-post-pandemic rollercoaster ride."

Matthew Walsh, an economist at Moody's Analytics, previously told Newsweek: "For the year ahead, we expect continued slowing in house prices. To put some numbers to it, by the end of 2025, we expect somewhere between 1 to 1.5 percent year-over-year price appreciation."

What's Next

Most housing experts believe home prices will continue rising at the national level throughout 2025, even if they will do so at a slower pace than the one that characterized the past four years.

Kara Ng, a senior economist at Zillow, previously told Newsweek that the company expects home values to grow by 2.2 percent in 2025.

Redfin, on the other hand, expects prices to rise by 4 percent at the national level throughout the year.