10 States Where Home Prices are Still Surging

SAVING & SPENDING - HOME & AUTO
The housing market might be cooling, but you still have to pay up to get a home in some markets.
Updated May 8, 2024
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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 5.5% higher in February 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 extra money before you begin shopping.

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10. Michigan

SeanPavonePhoto/Adobe grand rapids michigan usa

Year-over-year increase in home prices: 7.8%

Despite its top-10 increase in home prices, Michigan's overall cost of living is about 10% less than the national average. 

9. Ohio

SeanPavonePhoto/Adobe Akron Ohio USA Town Skyline

Year-over-year increase in home prices: 7.8%

Ohio tied with Michigan in terms of housing price increase at just 7.8% year over year. The state's cost of living isn't quite as healthy, however, coming in at just over 5% under the national average. 

8. Illinois

SeanPavonePhoto/Adobe cruise with skyscrapers in chicago illinois

Year-over-year increase in home prices: 8.4%

Illinois has seen an increase in home prices, primarily in its most prominent city of Chicago, which has matched its year-over-year price change of 8.4%.

The state as a whole has a cost of living just 8% lower than the national average. 

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7. Wisconsin

nejdetduzen/Adobe wisconsin state capitol building in madison-city

Year-over-year increase in home prices: 8.7%

Though Wisconsin had the nation's seventh-largest increase in home prices, the state still boasts a cost of living 5% lower than the national average.

Groceries, housing, utilities, and transportation are all relatively affordable. Importantly, however, the state's health care is the fifth-priciest in the nation.

6. New Hampshire

SeanPavonePhoto/Adobe portsmouth new hampshire usa

Year-over-year increase in home prices: 9.2%

New Hampshire had the sixth-highest increase of any state. Utilities are especially expensive in New Hampshire. You'll only pay more in two states and one territory: Alaska, Hawaii, and Puerto Rico.

5. Connecticut

f11photo/Adobe new haven city with connecticut cityscape

Year-over-year increase in home prices: 10.0%

This one stings, as living in Connecticut is already 12.8% more expensive than the average state. It's now also the state with the fifth-highest growth in home prices.

4. Maine

SeanPavonePhoto/Adobe Augusta Maine USA

Year-over-year increase in home prices: 11.4%

Maine, a dream state for many, couples its rising home costs with a cost of living nearly 10% higher than the national average.

3. Rhode Island

SeanPavonePhoto/Adobe Providence Rhode Island USA River Skyline

Year-over-year increase in home prices: 11.6%

If they can get past the increase in home prices, many will find Rhode Island somewhat affordable, and its cost of living is 10.7% higher than average. 

2. New Jersey

dbvirago/Adobe the skyline of jersey city

Year-over-year increase in home prices: 12.5%

New Jersey had the second-highest growth in home prices in the latest report.

The Garden State fits the Northeastern profile — that is, it has a higher cost of living (+13.9%) than average — but its healthcare costs are .7% below average

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1. South Dakota

Jacob/Adobe aerial view of Sioux Falls South Dakota at sunset

Year-over-year increase in home prices: 13.8%

Though it saw the highest increase in home prices, South Dakota is 7.6% less expensive to live in than the average state across the country.

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're 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 might also 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.

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