The housing market has experienced significant growth and volatility in recent years, particularly in certain regions like California, Florida, and Arizona.
According to a recent study by Point2Homes.com, home prices have doubled in various cities across the United States, with Detroit leading the pack with the fastest doubling time of 4.9 years.
Charlotte, North Carolina, while not listed among the fastest-doubling cities, has likely seen its own increases in home prices, albeit at a different pace compared to the fastest-doubling cities. Charlotte is making waves in the industrial sector, ranking eighth in the nation for the development of industrial space with approximately 11.5 million square feet of new industrial space currently under construction.
In addition, Charlotte experienced significant population growth between 2004 and 2014, adding 888,000 new residents to make it one of the fastest-growing metropolitan areas in the United States during that period. And according to U.S. census data from 2005 to 2015, Charlotte led the nation in millennial population growth and ranked as the third-fastest-growing major city in the country.
Charlotte is also known for being home to the corporate headquarters of major financial institutions such as Bank of America, Truist Financial, and Wells Fargo’s East Coast headquarters. This concentration of financial institutions has solidified Charlotte’s position as the second-largest banking center in the United States.
The top 20 U.S. cities when it comes to home prices doubling in the shortest amount of time:
| Rank | City | Years It Took To Double |
| 1 | DETROIT, MI | 4.9 |
| 2 | Spokane, WA | 5.9 |
| 3 | Tampa, FL | 6 |
| 4 | Miami, FL | 6 |
| 5 | Baltimore, MD | 6.1 |
| 6 | Scottsdale, AZ | 6.2 |
| 7 | Buffalo, NY | 6.4 |
| 8 | St. Petersburg, FL | 6.6 |
| 9 | Jersey City, NJ | 6.8 |
| 10 | Phoenix, AZ | 6.8 |
| 11 | Gilbert, AZ | 6.8 |
| 12 | Mesa, AZ | 6.9 |
| 13 | Cleveland, OH | 6.9 |
| 14 | CHARLOTTE, NC | 7 |
| 15 | North Las Vegas, NV | 7 |
| 16 | Chandler, AZ | 7 |
| 17 | Cincinnati, OH | 7 |
| 18 | Boise, ID | 7.1 |
| 19 | Milwaukee, WI | 7.1 |
| 20 | Tucson, AZ | 7.1 |
Detroit shouldn’t surprise you
It took less than 5 years for the price of the typical home in Detroit to double as the Motor City’s housing market is the fastest growing in the U.S. While some may find that shocking, the city recorded its fewest homicides since 1966 in 2023 and carjackings are at a record low. Moreover, the Detroit Regional Chamber reports that unemployment in Southeast Michigan has remained at or below 4% for almost two years. Economists view this range, between 3% and 5%, as an indicator of a healthy economy.
Detroit has been on a steady path of recovery since its well-publicized bankruptcy in 2013, with significant portions of the city undergoing revitalization efforts. The surge includes a resurgence in manufacturing, notably with the big three American automakers establishing or expanding electric vehicle plants in the region.
California, no doubt about it
As far as highest-priced metropolitan areas, eight of the top 10 most expensive U.S. locales in Q4 2023 were in California, led by San Jose-Sunnyvale-Santa Clara ($1,750,300), San Francisco-Oakland-Hayward ($1,251,000), Salinas ($993,900) and San Diego-Carlsbad ($931,600), according to National Association of Realtors data.
Cleveland area surging
Cleveland, Ohio led all metropolitan areas (cities plus surrounding suburbs) in price growth in 2023 (25.5%), followed by Birmingham, Alabama (24.4%); Boca Raton, Florida (22.5%); Richmond, Virginia (19%); Fort Wayne, Indiana (18.6%); Dallas, Texas (16.9%); Miami Beach, Florida (16.7%); Cincinnati, Ohio (15.9%); Meridian, Idaho (15.6%); and Lexington-Fayette, Kentucky (15.5%).
6.4 Percent
Overall, in February 2024 home prices across the U.S. were up 6.4% year-over-year, according to Redfin, with an average sale price of $411,887.
Affordability – A concern for first-time homebuyers
Considering the national trend of rising prices and mortgage payments, affordability is a concern for many potential homebuyers.
“Homeowners have benefited from housing wealth accumulation. However, many homebuyers have been shocked at high housing costs, with a typical monthly mortgage payment rising from $1,000 three years ago to more than $2,000 last year,” said NAR Chief Economist Lawrence Yun.
Relief at the expense of real estate agents’ commissions?
The recent legal settlement announced by the National Association of Realtors could provide some relief for prospective homebuyers by allowing them to negotiate lower agent commissions, potentially easing the financial burden of purchasing a home.
Overall
The U.S. housing market is dynamic and evolving, with challenges and opportunities for buyers and sellers alike.
