Special Report

This Is America's Hottest Housing Market

Feverpitched / iStock via Getty Images

The American housing market has been on fire. Home values in some markets increased by over 30% year over year. As of February, America’s hottest market was Phoenix. 

One reason home prices have risen over the past two years is that tens of thousands of people have decided to migrate from America’s large coastal cities to ones inland. San Francisco and New York have home prices that are two or three times the national median price for existing homes, which has risen to a record of over $375,000. (These are 20 most expensive suburbs for home buyers.)

And while new home building has accelerated, supply chain issues have made building materials more expensive, and shortages have delayed completion of many homes that are under construction or in the planning stages.

Another reason for rising prices is the new mobility of many Americans. The COVID-19 pandemic caused companies to shutter offices for safety reasons. Millions of people have worked from home, and some businesses will not make them come back to traditional offices.

One impetus for home buying last year was the near historic low mortgage rates — below 3%. The Federal Reserve’s rate increases mean that those mortgage rates are no longer available, and this may dent demand in 2022. Already, existing home sales dipped in March, the National Association of Realtors reported. (This is the mortgage rate in America every year since 1972.)

The gold standard of home price research is the S&P CoreLogic Case-Shiller Indices, which are issued monthly. The figures for February showed that home prices across the country rose 19.8% from the same month last year. Craig J. Lazzara, managing director at S&P DJI, commented, “The National Composite’s 19.8% year-over-year change for February was the third-highest reading in 35 years of history.”

The research also looks at price changes in 20 of America’s largest metro areas. These increases were uneven in February. To find America’s hottest housing market, 24/7 Wall St. reviewed housing prices changes in metro areas from S&P CoreLogic Case-Shiller’s recent release.

The market with the highest increase was Phoenix, where prices in February climbed 32.9% year over year. It is the 33rd consecutive month in which Phoenix records the highest increase in housing prices. It was followed closely by Tampa, Florida, where prices rose 32.6%, and Miami, which had a 29.7% increase in housing prices year over year.

At the far end of the spectrum, home prices in Washington rose only 11.9% annually.

Click here to see America’s hottest housing market

Matt Anderson / iStock via Getty Images

20. Washington, DC
> Pct. increase Feb 2021 to Feb 2022: 11.9%
> Pct. increase Jan 2022 to Feb 2022: 1.7% – #15 highest on list

[in-text-ad]

Davel5957 / E+ via Getty Images

19. Minneapolis, MN
> Pct. increase Feb 2021 to Feb 2022: 12.0%
> Pct. increase Jan 2022 to Feb 2022: 1.1% – #18 highest on list

Eloi_Omella / iStock via Getty Images

18. New York, NY
> Pct. increase Feb 2021 to Feb 2022: 12.9%
> Pct. increase Jan 2022 to Feb 2022: 1.1% – #18 highest on list

JaySi / iStock via Getty Images

17. Chicago, IL
> Pct. increase Feb 2021 to Feb 2022: 13.1%
> Pct. increase Jan 2022 to Feb 2022: 1.2% – #17 highest on list

[in-text-ad-2]

Sean Pavone / iStock via Getty Images

16. Cleveland, OH
> Pct. increase Feb 2021 to Feb 2022: 13.6%
> Pct. increase Jan 2022 to Feb 2022: 0.9% – #20 highest on list

Sean Pavone / iStock via Getty Images

15. Boston, MA
> Pct. increase Feb 2021 to Feb 2022: 14.6%
> Pct. increase Jan 2022 to Feb 2022: 2.1% – #11 highest on list

[in-text-ad]

pawel.gaul / E+ via Getty Images

14. Detroit, MI
> Pct. increase Feb 2021 to Feb 2022: 14.6%
> Pct. increase Jan 2022 to Feb 2022: 1.6% – #16 highest on list

Sean Pavone / iStock via Getty Images

13. Portland, OR
> Pct. increase Feb 2021 to Feb 2022: 19.0%
> Pct. increase Jan 2022 to Feb 2022: 2.5% – #8 highest on list

dszc / iStock via Getty Images

12. Los Angeles, CA
> Pct. increase Feb 2021 to Feb 2022: 22.1%
> Pct. increase Jan 2022 to Feb 2022: 3.2% – #4 highest on list

[in-text-ad-2]

Sean Pavone / iStock via Getty Images

11. Denver, CO
> Pct. increase Feb 2021 to Feb 2022: 22.3%
> Pct. increase Jan 2022 to Feb 2022: 3.1% – #5 highest on list

bluejayphoto / iStock via Getty Images

10. San Francisco, CA
> Pct. increase Feb 2021 to Feb 2022: 22.9%
> Pct. increase Jan 2022 to Feb 2022: 3.7% – #3 highest on list

[in-text-ad]

Kruck20 / iStock via Getty Images

9. Atlanta, GA
> Pct. increase Feb 2021 to Feb 2022: 24.0%
> Pct. increase Jan 2022 to Feb 2022: 2.0% – #13 highest on list

Kruck20 / iStock via Getty Images

8. Charlotte, NC
> Pct. increase Feb 2021 to Feb 2022: 25.5%
> Pct. increase Jan 2022 to Feb 2022: 1.9% – #14 highest on list

roman_slavik / iStock via Getty Images

7. Seattle, WA
> Pct. increase Feb 2021 to Feb 2022: 26.6%
> Pct. increase Jan 2022 to Feb 2022: 4.4% – #2 highest on list

[in-text-ad-2]

f11photo / iStock via Getty Images

6. Las Vegas, NV
> Pct. increase Feb 2021 to Feb 2022: 27.5%
> Pct. increase Jan 2022 to Feb 2022: 2.1% – #11 highest on list

f11photo / iStock via Getty Images

5. Dallas, TX
> Pct. increase Feb 2021 to Feb 2022: 28.8%
> Pct. increase Jan 2022 to Feb 2022: 2.9% – #6 highest on list

[in-text-ad]

f11photo / iStock via Getty Images

4. San Diego, CA
> Pct. increase Feb 2021 to Feb 2022: 29.1%
> Pct. increase Jan 2022 to Feb 2022: 4.5% – #1 highest on list

Art Wager / E+ via Getty Images

3. Miami, FL
> Pct. increase Feb 2021 to Feb 2022: 29.7%
> Pct. increase Jan 2022 to Feb 2022: 2.3% – #9 highest on list

SeanPavonePhoto / iStock via Getty Images

2. Tampa, FL
> Pct. increase Feb 2021 to Feb 2022: 32.6%
> Pct. increase Jan 2022 to Feb 2022: 2.7% – #7 highest on list

[in-text-ad-2]

4kodiak / E+ via Getty Images

1. Phoenix, AZ
> Pct. increase Feb 2021 to Feb 2022: 32.9%
> Pct. increase Jan 2022 to Feb 2022: 2.2% – #10 highest on list

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.