10 States Where Home Prices are Still Surging

The housing market might be cooling, but you still have to pay up to get a home in some markets.
Last updated Aug. 25, 2022 | By Jenny Cohen | Edited By Chris Kissell
home for sale sign

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The housing market is starting to cool in some places as mortgage rates rise. But there are still states where prices are sky high.

Nationwide, home prices were 18.3% higher in June compared to the same period last year, according to property data company CoreLogic. Prices remain high in many markets.

The following is a list of the top 10 states with the highest percentage gain in the cost of a home in the past year. If you plan to buy a home in one of these states, it might be wise to find a way to make some extra money before you begin shopping.

Florida

espiegle/Adobe Skyline view of Miami Florida

Year-over-year increase in home prices: 31.8%

Florida has seen a steady increase in population over the decades. Currently, more than 22 million people call the Sunshine State home.

That population increase has created competition that has pushed housing prices higher.

One example of this is Miami, which saw a 25.3% increase in housing costs in June compared to a year earlier. That puts the city among the top 10 metro markets with the highest increases in the country.

Tennessee

pabrady63/Adobe Nashville Tennessee Skyline

Year-over-year increase in home prices: 25.8%

Tennessee’s population also has grown in recent years, most notably around Nashville as more businesses moved to the area.

There also is an increase in population in Southern states in general — seven of the 10 states on this list are from that region.

Arizona

Dreamframer/Adobe Phoenix Arizona

Year-over-year increase in home prices: 24.9%

Arizona has seen recent growth in its population as more people move to the state from expensive areas like California. Last year, the state’s Maricopa County — which is home to Phoenix — saw the highest population increase of any county in the U.S.

That kind of migration may be part of the reason why prices are going up.

Phoenix saw the highest increase in housing values of any metro area in the U.S., with prices 26.1% higher in June compared to a year earlier.

North Carolina

zimmytws/Adobe new homes on a quiet street in RaleighNC

Year-over-year increase in home prices: 24.7%

As more people move to North Carolina, competition for housing grows. Workers from expensive places such as New York are moving to more affordable areas now that they can work from home.

The state also is home to good-paying tech jobs in the Research Triangle, which includes the Raleigh-Durham area.

South Carolina

susanne2688/Adobe St. Michaels Church and Broad St. in Charleston SC

Year-over-year increase in home prices: 23.5%

Areas along the coast of South Carolina are seeing faster price increases compared to their inland neighbors. That includes Myrtle Beach and Hilton Head.

For example, South Carolina Realtors reports that Hilton Head is the most expensive area in the state, with a median price of $485,000.


South Dakota

None

Year-over-year increase in home prices: 22.9%

South Dakota is attracting workers who want more space now that they can work from anywhere they want.

Competition also is increasing in rural areas, as people look for additional space to spread out after spending time confined in small homes and apartments during the pandemic.

Georgia

Kevin Ruck/Adobe Atlanta Georgia USA Downtown Skyline Aerial

Year-over-year increase in home prices: 22.9%

The city of Atlanta has been an attractive stop for new residents for many years. Georgia as a whole is rebounding after the pandemic, with an increase in jobs and a growing economy driving up housing demand.

Nevada

SeanPavonePhoto/Adobe Las Vegas Nevada USA Skyline

Year-over-year increase in home prices: 22.2%

Like Arizona, Nevada is seeing an increase in population due to the lower cost of living compared to Western neighbors such as California and Washington state.

The state is also home to Las Vegas, which is among the top 10 metro areas with the biggest year-over-year home price increase. Values here are up 24.3%.

Texas

Othmar/Adobe Texas

Year-over-year increase in home prices: 19.5%

With almost 30 million residents, Texas is currently the second most populous state, behind California. A steady stream of new residents is pushing housing prices higher, particularly in metro areas of the state.

For example, Houston saw housing prices increase 17.6% year-over-year in June.

Arkansas

SeanPavonePhoto/Adobe Little Rock Arkansas USA Skyline

Year-over-year increase in home prices: 19.5%

A lower cost of living is attracting residents to Arkansas, but demand might be outpacing the state’s housing supply.

In fact, northwest Arkansas, which is home to Fayetteville, has seen increases in housing costs that have outpaced some areas in Florida in recent months.

Bottom line

Monkey Business/Adobe large suburban house with ‘for sale’ sign displayed outside

If you’re looking for a new home, think carefully about where you buy. You want to avoid making foolish money mistakes, especially with such a big purchase.

So, if you are flexible, consider settling down in states where home prices haven’t shot to the moon.

There are also other ways to save money, such as reducing the price point of the home you’re looking for. You also might want to wait if you think prices in your area will come down as mortgage rates go up.

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Author Details

Jenny Cohen Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and FoxSports.com.