These Housing Markets Led the Nation in Price Growth This Year

The housing market kicked off the year with steady—if uneven—momentum, as home prices climbed in most metro areas across the country.

According to the National Association of REALTORS® (NAR), 71% of the 235 metro markets tracked saw home prices rise in the first quarter, reinforcing a familiar trend: limited inventory continues to push prices higher, even as affordability remains a challenge.

Home Prices Continue to Climb

Nationally, the median existing single-family home price reached $404,300, marking a modest 0.5% increase year over year.

While price growth has slowed compared to previous years, the impact is still significant. Rising values have helped homeowners build substantial wealth—over $128,000 in housing equity on average over the past six years.

As NAR Chief Economist Lawrence Yun explains, the broader trend remains clear: home prices are still increasing in many markets, continuing to benefit homeowners.

Midwest and Northeast Lead Price Gains

Regional performance varied, but two areas stood out:

• Northeast: Prices rose nearly 5% year over year, driven by persistent housing shortages
• Midwest: Followed closely with about 4% growth, fueled by relative affordability

Among all markets, Akron led the nation with the largest annual price increase—up 12% in the first quarter.

Top 10 Markets With the Biggest Price Gains

Several smaller and mid-sized markets saw particularly strong growth:

• Akron — up 12%
• Anchorage — up 10.4%
• Albany–Schenectady–Troy — up 9.3%
• Trenton — up 9.2%
• Davenport–Moline–Rock Island — up 9.2%
• Canton–Massillon — up 7.9%
• Milwaukee — up 7.7%
• St. Louis — up 7.4%
• Reading — up 7.4%
• Rochester — up 7.2%

These markets highlight a growing trend: strong price appreciation isn’t limited to major coastal cities—many more affordable regions are seeing some of the fastest gains.

Affordability Still a Challenge

Even as mortgage rates have eased slightly—hovering in the low-to-mid 6% range—affordability remains a major hurdle.

The typical monthly mortgage payment averaged $1,979 in the first quarter, offering slight relief compared to last year but still high for many buyers.

At the same time, more markets are beginning to show signs of cooling:

• 27% of markets reported price declines, up from 17% a year ago

This suggests the market may be gradually rebalancing, though conditions vary widely by location.

Pricing Strategy Matters More Than Ever

In today’s market, pricing a home correctly is critical.

As real estate professional Sarah Scattini notes, overpriced homes are more likely to sit on the market, while well-priced properties are still attracting strong interest—including multiple offers in some cases.

The Most Expensive Markets

While many Midwest and Northeast cities led in growth, California continues to dominate the list of most expensive housing markets:

• San Jose — $2.03 million
• Anaheim — $1.44 million
• San Francisco — $1.35 million
• Honolulu — $1.18 million
• San Diego — $1.05 million

Despite their high price points, some of these markets are experiencing slight slowdowns or price declines—another sign of shifting dynamics.

The Bottom Line

The first quarter of 2026 shows a housing market that’s still growing—but at a more measured pace.

• Most markets continue to see price increases
• Affordable regions are leading growth
• Some markets are beginning to cool
• Buyers are still facing affordability challenges

For both buyers and sellers, success in today’s market comes down to understanding local conditions—and adapting quickly.