Over the past year, the cost of everything from eggs to fuel has been sky-high thanks to high inflation numbers in the United States. A recent study conducted by Home Bay found that home prices have increased a whopping 42% since 2020, while inflation has increased 16%.
Despite higher mortgage interest rates hurting overall homebuyer spending power, it hasn't stopped Americans from migrating to highly desirable areas. For those looking to buy a home in a place with bright lights and big buildings, you might avoid these cities where, thanks in large part to inflation, home prices keep going up, up, up…
Here are the top 10 cities with the most change in home values from 2022-2023:
1. Miami, FL
Miami tops the list of cities where inflation has had no negative impact on the housing market. In fact, since 2022, average home prices in Miami have increased 16%, jumping from $380,664 to $441,390 on average.
Typical home value in 2022: $380,664
Typical home value in 2023: $441,390
Percent increase 2022-2023: 16%
2. Jacksonville, FL
Florida has seen a massive influx of new residents in the last few years. Because housing supply can't keep up with demand, the top four major cities in the country to see significant home price gains over the past year are all located in The Sunshine State.
While not quite as expensive as Miami, Jacksonville had the second-highest increase in home prices at nearly 14%.
Typical home value in 2022: $307,384
Typical home value in 2023: $349,781
Percent increase 2022-2023: 13.4%
3. Orlando, FL
Both snowbirds and younger families continue to flock to Florida, making housing in larger metro areas, like Orlando, more expensive than ever. In Orlando, home prices increased over 12% in the last twelve months, making it even more of a challenge for first-time home buyers to qualify for a mortgage.
Typical home value in 2022: $332,347
Typical home value in 2023: $373,914
Percent increase 2022-2023: 12.5%
4. Tampa, FL
Another city that saw a significant increase in home values over the last year was Tampa, Florida. This Gulf Coast city has seen tremendous growth in the previous five years. Its population has soared to over 3.2 million people, an increase of 5.6%, making it one of the fastest-growing metro areas in the country.
Typical home value in 2022: $321,430
Typical home value in 2023: $361,065
Percent increase 2022-2023: 12.3%
5. Oklahoma City, OK
Even more,] moderately priced markets like Oklahoma City have experienced increased home prices over the last twelve months. In 2022, the average home in Oklahoma City cost under $200,000, making it one of the most affordable cities on the list.
However, according to experts, the average home buyer needs 2.6 years to save for a down payment on a home and to still have enough money for a monthly mortgage payment. So, while home prices are still relatively affordable in this capital city, more people need help to afford a new home.
Typical home value in 2022: $192,089
Typical home value in 2023: $213,355
Percent increase 2022-2023: 11.1%
6. Hartford, CT
Connecticut may be one of the most expensive states in the country, but the state's capital offers a relatively reasonable cost of living. In fact, Hartford's cost of living is 13% lower than the state average, and the housing cost is 11% lower than the national average, with a median home price of around $300,000.
Typical home value in 2022: $278,854
Typical home value in 2023: $307,920
Percent increase 2022-2023: 10.4%
7. Richmond, VA
Housing costs in this historic city are comparable to the national average, and the median salary here is roughly on par with the national average. Even though home prices increased over 10% in the last year, Richmond remains a serious contender for potential home buyers.
Typical home value in 2022: $300,956
Typical home value in 2023: $332,317
Percent increase 2022-2023: 10.4%
8. Columbus, OH
The cost of living in Columbus is 12% below the national average, with groceries, gasoline, and restaurant prices generally more affordable than those in other Buckeye cities like Cleveland.
With median home prices below $300,000, it's no surprise Columbus has earned a spot on the list of best places to live for recent college grads and young professionals.
Typical home value in 2022: $257,785
Typical home value in 2023: $284,206
Percent increase 2022-2023: 10.3%
9. Nashville, TN
Not only is Music City known for its country music roots, but the southeastern city also has a reputation for being one of the best places to live in America!
Even though home prices have increased by 10.1% over the last 12 months, Nashville is still considered one of the most affordable cities in the U.S. – 4% lower than the national average. And since Tennessee is one of the few states that doesn't tax wages, residents can pay more for a home.
Typical home value in 2022: $382,165
Typical home value in 2023: $420,932
Percent increase 2022-2023: 10.1%
10. Memphis, TN
In the '60s and '70s, when Elvis ruled the halls of Graceland, the typical home price cost just $23,900. Since January 1970, home prices have raised 1,858% to a staggering $468,000. While home prices in Memphis continue to rise, they're still well below the national average, which could be one of the reasons it’s listed as a top destination for millennial homebuyers.
Typical home value in 2022: $205,449
Typical home value in 2023: $225,958
Percent increase 2022-2023: 10%
The news isn't all bad for prospective homebuyers, though. In some areas, inflation has curbed and even decreased year-over-year home price growth. Here are the top 10 cities with the smallest changes in home values from 2022-2023:
1. San Francisco, CA
While San Francisco is home to some of the most expensive real estate in the country — with the average home costing $1,096,477 — it was one of only two major cities to see a backslide in home prices over the past year.
Typical home value in 2022: $1,113,873
Typical home value in 2023: $1,096,477
Percent increase 2022-2023: -1.6%
2. New Orleans, LA
The only other city in the country to have a decrease in home prices over the last year was New Orleans. While it may be a marginal decrease, New Orleans remains one of the most affordable major cities for first-time home buyers. When you consider millennials are spending $433,100 on average for their first home, New Orleans' typical home price is nearly 50% less.
Typical home value in 2022: $238,291
Typical home value in 2023: $237,942
Percent increase 2022-2023: -0.2%
3. Sacramento, CA
Despite California having some of the most expensive home prices overall, the state's capital city saw the smallest increase in home values last year, with just a 0.7% increase. In fact, according to recent trends, there is only one zip code in all of Sac Town that has seen a rise in prices, the tiny River Pines enclave in Amador County.
Typical home value in 2022: $539,913
Typical home value in 2023: $543,529
Percent increase 2022-2023: 0.7%
4. Portland, OR
Locals are always trying to "Keep Portland Weird." However, Rip City residents shouldn't be weirded out by home value trends. With a modest 2.2% increase, prices have normalized recently, and buyers can find a place to call their own for $524,593 on average.
Typical home value in 2022: $513,434
Typical home value in 2023: $524,593
Percent increase 2022-2023: 2.2%
5. Salt Lake City, UT
Salt Lake City is growing. Fast. Not only has it been on the list of fastest-growing cities for years, but experts expect 2.2M new residents to flock to Utah's capital city by 2060. With all that growth, it may be wise to snatch up a house now that prices have only increased 2.5% since last year.
Typical home value in 2022: $510,876
Typical home value in 2023: $523,590
Percent increase 2022-2023: 2.5%
6. Denver, CO
According to the Home Bay study, home prices in Denver have shot up over 200% since the turn of the century. Well, prices are starting to plateau in the Mile High City. With a 2.6% increase year-over-year, Denver is one of only 17 cities in the study where growth was 5% or less.
Typical home value in 2022: $556,083
Typical home value in 2023: $570,262
Percent increase 2022-2023: 2.6%
7. Seattle, WA
The suburb of Medina, where the average home price is $4.18M, is the only non-California town to show up on the "10 Most Expensive Zip Codes" list. But, overall, average prices in Seattle have only grown 2.9% this year, 7th least among the cities examined.
Typical home value in 2022: $670,668
Typical home value in 2023: $689,866
Percent increase 2022-2023: 2.9%
8. San Jose, CA
Seven of America's top ten most expensive zip codes are in California, including this Bay Area city, where the average home price costs a staggering $778 per square foot! That means if you're buying a $1.38M in San Jose, you only get 1,781 square feet total. Yikes!
Typical home value in 2022: $1,343,798
Typical home value in 2023: $1,385,816
Percent increase 2022-2023: 3.1%
9. Minneapolis, MN
Minneapolis is one of the most affordable cities in the study. While prices have moderately increased by 3.2%, the typical home only costs $348,728. When you consider that the average household income for first-time buyers is $70,784, purchasing in Minneapolis would be a 4.9-to-1 home-price-to-income ratio, far below the national average.
Typical home value in 2022: $337,844
Typical home value in 2023: $348,728
Percent increase 2022-2023: 3.2%
10. Washington, DC
Just barely sneaking into the Top 10, Washington, DC has seen home prices tick up 3.3% over the past year. In general, buyers in the nation's capital have the upper hand in negotiations as homes are sitting on the market longer, and inventory has gone up 20%.
Typical home value in 2022: $504,539
Typical home value in 2023: $521,308
Percent increase 2022-2023: 3.3%