Rising mortgage rates due to the rate hikes implemented by the Federal Reserve have put the squeeze on home affordability for many American homebuyers, not to mention raising fears of an impending recession. The housing market in the United States really took off in the pandemic’s second year (2021), with high demand and homes flying off the shelves, leading to diminishing inventories and surges in home prices. With the recent increases in mortgage rates, many housing markets have showed reduced activity. Still, there are many housing markets that have continued to thrive.
Using monthly housing data from Redfin, we analyzed the 200 largest cities in the U.S. by population and determined which housing markets have experienced the biggest growth in home prices from May 2021 to May 2022 (the latest data available at the date of publication).
Read on to find out which housing markets have seen the price of their homes increase the most from 2021 to 2022.
10 Cities Where Home Prices Have Risen the Most 2021 to 2022
The 10 cities that have seen the largest growth in home prices from May 2021 to May 2022 are an interesting mix, though with some notable geographic patterns. Three cities in Nevada and three cities in Texas made this list of 10 major cities with the biggest rise in home prices over the last year. Other states that posted up cities to this list include California (Irvine), Florida (Hollywood), North Carolina (Cary), and Utah (Salt Lake City). Here’s a breakdown of the housing markets with the biggest increase in home prices from 2021 to 2022:
1. Waco, Texas
It is a testament to the robustness of the Texas housing market that Waco is one of three Texas cities to make our list of the 10 cities that have seen the biggest rise in home prices over the last year. Roughly halfway between Dallas and Austin, Waco has experienced an impressive 59.4% rise in home prices: From a median sale price of $155,000 in May 2021 to $247,000 in May 2022. Bear in mind, though, that this growth in home prices is more of a rebound than an outright increase. In May 2020, the median sale price in Waco was $252,556, before experiencing a massive drop, down to $155,000 the next May. New listings of homes for sale are also up since last year, from 11 new listings in May 2021 to 20 new listings in May 2022, a year-over-year increase of 81.8%.
2. Cary, North Carolina
Located just west of Raleigh, Cary has witnessed marked growth in its home prices from 2021 to 2022. Back in May 2021, the median sale price in Cary was $431,000, before rising by 42.7%, to reach $615,000 in May 2022. Homebuying demand is still high in Cary, with available inventory dropping by 28.2%, from 340 available homes in May 2021, down to 244 homes in May 2022. Another sign of activity in the Cary housing market is the continued rise in sales-to-list ratio, the ratio of what a home sells for compared to its listing price. In May 2020, the sales-to-list ratio in Cary was 99.2%, before rising to an impressive 105% in May 2021, and then rising again, to 109.5% in May 2022, meaning that the average home in Cary is selling for 9.5% above its list price.
3. McKinney, Texas
McKinney is another star of the Texas housing market in 2022. From a median sale price of $425,000 in May 2021, home prices in McKinney rose by 35.9%, reaching a new median price of $577,700 in May 2022. This one-year growth rate exceeds the one-year growth rate achieved from May 2020 to May 2021, when the median sale price in McKinney rose by 27.3%, from $333,750 to $425,000, respectively. Perhaps not surprisingly, housing inventory in McKinney has declined over the same period: From 336 available homes for sale in May 2021, down by 19.6%, to 270 available homes in May 2022. What’s more, the number of days a home in McKinney spends on the market before being bought up has remained quite short. From a median number of days on market of 43 days in May 2020, it fell by 65.1%, to just 15 days on market in May 2021; from there, it fell a tad more, to now just 14 days on market as of May 2022.
4. Salt Lake City, Utah
In the Utah housing market, Salt Lake City stands out, recording a year-over-year growth in home prices of 35.6%: From a median sale price of $450,000 in May 2021 to $610,000 in May 2022. Perhaps a reflection of the continued activity in the Salt Lake City housing market is the very few days a home spends on the market before being bought up. In May 2020, the median number of days on market for a home was 20 days; this then dropped to a median of eight days on market in May 2021 and only seven days on market in May 2022.
5. Enterprise, Nevada
Enterprise is the first of three Nevada cities to make this list. Situated right by Las Vegas, Enterprise saw its median sale price for a home rise by 35.1%: From a median of $385,000 in May 2021 to $520,000 in May 2022. The number of days on the market of a home for sale has remained low since 2020. In May 2021, the median number of days on market in Enterprise was 17 days and 19 days in May 2022. Homes in Enterprise are selling for above their listing price, with a sales-to-list ratio of 101.2% in May 2021 increasing to 101.4% in May 2022, whereas in May 2019 and May 2020 the figures were 98.3% and 98%, respectively.
6. Irvine, California
Irvine is the only city from the whole California housing market in make our list of the 10 cities that have seen the biggest rise in home prices from 2021 to 2022. From a median sale price of $989,000 in May 2021, home prices rose by 35%, reaching a median sale price of $1,335,000 in May 2022. Over the same period, the number of home sales fell by 31.4% (369 sales in May 2021 to 253 sales in May 2022), but inventory also fell. In May 2021, available inventory in Irvine was 457 homes, before dropping by 40.3%, to reach 273 homes in May 2022.
7. Frisco, Texas
Frisco is another sign of the strength of the Texas housing market. Home prices are up more than a third (33.8%) from last year: From a median sale price of $541,720 in May 2021 to $725,000 in May 2022. The number of days on market homes spend in Frisco being bought up has remained low, with a median number of days on market of 15 in May 2021 and 14 days in May 2022. Solid continued activity in the Frisco housing market is also reflected in the sales-to-list ratio. In May 2020, homes were selling for under their list price, with a sales-to-list ratio of 97.2% that month. From there, the sales-to-list price ratio surged to 106.3% in May 2021 and then even more, reaching 109.5% in May 2022, meaning a typical home in Frisco is selling for 9.5% over its listing price.
8. North Las Vegas, Nevada
North Las Vegas is the second of three Nevada cities to make this list. Home prices in North Las Vegas rose by a third (33.3%), from a median sale price of $330,000 in May 2021 to $440,000 in May 2022. Home sales are also up in North Las Vegas, which bucks the trend in so many other housing markets. Home sales rose by 1.6%, from 435 home sales in May 2021 to 442 home sales in May 2022. The number of days spent on the market for homes in North Las Vegas has held pretty steady: The median number of days on market was 11 in May 2021 and was 13 days in May 2022.
9. Hollywood, Florida
Florida is home to no state income taxes and an always-interesting housing market. Out of the entire Florida housing market, the city of Hollywood experienced the greatest increase in home prices over the last year. From a median sale price of $340,000 in May 2021, home prices rose by 33.1%, reaching a median price of $452,500 in May 2022. Not surprisingly, housing inventory in Hollywood is down, falling by 29.7%, from 1,089 available homes for sale in May 2021, down to 766 homes in May 2022. The number of days on the market before a house is bought up has decreased too in Hollywood. In May 2021, the median number of days on market for a home was 68 days, before falling to a median of 42 days on market in May 2022.
10. Paradise, Nevada
Paradise, Nevada, is the last city to make our list, experiencing a 33% rise in home prices since last year: From a median sale price of $300,000 in May 2021 to a median sale price of $399,000 in May 2022. That year-over-year growth of 33% far surpasses the year-over-year growth in home prices from May 2020 to May 2021, which saw home price growth of 10.7%, from $271,000 to $300,000. The number of home sales is down by 10.1% in Paradise, going from 406 home sales in May 2021, down to 365 home sales in May 2022. Meanwhile, the number of days on the market for a home in Paradise has continued to decline year after year since May 2019. In May 2021, the median days on market for a home in Paradise was 25 days, and it’s now down to a median of 20 days on market in May 2022.
The Bottom Line on Housing Market Prices
The national average rate of growth in home prices from May 2021 to May 2022 was 14.8%. Every single city in this list has experienced growth rates in home prices far in excess of that national average. The states with the most cities to make our top-10 list were Texas (with three cities) and Nevada (with three cities). For the state of Texas as a whole, the year-over-year growth in home prices was 19.5% for the same May-to-May period. Nevada’s annual growth rate in home prices was even higher, at 24.6%, rising from a medians sale price of $373,000 in May 2021 to $465,000 in May 2022. Thus, while much of the U.S. housing market has been displaying signs of cooling off, particularly in response to interest rate hikes, there are still plenty of housing markets where buying and selling activity is strong.