One small but bustling Midwest city has the fastest rising home prices in America.
The American Midwest is experiencing an unexpected housing boom with three of the five fastest-growing property markets in the nation.
Milwaukee topped the charts with a staggering 20 percent year-over-year price surge recorded in February, according to surprising new data released by real estate brokerage Redfin.
This pushed the median home sale price to $330,000 – the largest increase among America’s 50 most populous metro areas.
Detroit and Cleveland also featured in the top five hottest markets, with prices jumping 12.5 percent and 10 percent respectively.
It occurred despite a nationwide cooling in buyer demand that saw home sales drop 6.2 percent compared to last year.
Katie O’Keefe, owner and broker at Dream Realty, told the DailyMail.com she’s noticed a massive increase of demand in the local market – completely changing the common practice of buying houses.
O’Keefe – who has been in the industry for more than two decades – described a market so competitive that buyers are regularly waiving what were once considered essential safeguards just to secure properties.
Milwaukee had the fastest rising home prices in America
The American Midwest is experiencing an unexpected housing boom with three of the five fastest-growing property markets in the nation
‘Common practice now is to have buyers remove what were very typical contingencies like inspections and appraisals just to win the home,’ she told the DailyMail.com.
‘I have been in the industry over 20 years and the past few years we have seen a huge increase in demand,’ she said.
‘We are seeing multiple offers, over asking offer amounts, homes under contract in days – sometimes hours!’ the realtor veteran added.
She explained that the market is now tight, due to lack of inventory.
Detroit has experienced the largest inventory decline among major metros at 6.7 percent fewer listings than last February.
‘Years ago, I could search for a buyer and send a list of 30-50 available options. Now there may be three to five homes available,’ she said.
O’Keefe said this is a great time for sellers.
‘We don’t see any change in the near future. Great for sellers. More important than ever for buyers to be represented by an agent who has experience.’
Katie O’Keefe, owner and broker at Dream Realty, told Dailymail.com she’s noticed a massive increase of demand in the local market – completely changing the common practice of buying houses
Milwaukee topped the charts with a staggering 20 percent year-over-year price surge in February, according to surprising new data released by real estate brokerage Redfin
This pushed the median home sale price to $330,000 – the largest increase among America’s 50 most populous metro areas
Despite the surges, the Midwest remains America’s most affordable region for homebuyers.
Detroit maintains the lowest median sale price of any major metro at $180,000, with Cleveland following as the second most affordable at $217,750.
Meanwhile, nationwide housing inventory climbed 10.7 percent year over year to reach its highest level since June 2020, early in the Covid-19 pandemic.
And the data shows no signs of cooling in sight for the booming Midwest regions.
‘Today’s housing market is weird,’ said Desiree Bourgeois, a Redfin Premier real estate agent in Detroit.
‘Some homes are attracting bidding wars like it’s 2020 again, while others are sitting on the market for weeks with no action.’
She described recently witnessing a property receive 10 competing offers, eventually selling for $50,000 above asking price with the buyer waiving their appraisal contingency.
Detroit and Cleveland also featured in the top five hottest markets, with prices jumping 12.5 percent and 10 percent respectively
Despite the surges, the Midwest remains America’s most affordable region for homebuyers
This is a risky move that leaves purchasers vulnerable if a property doesn’t value as high as their offer, she explained.
‘Oftentimes, it’s move-in ready homes in desirable areas that draw competition,’ she said.
The bizarre market conditions come as nationwide home prices rose just 3.2 percent to $425,421 – the slowest growth recorded in six months.
The price of homes in other former ‘affordable housing havens’ are also skyrocketing, according to Redfin’s numbers.
In Cleveland, Ohio, home sale prices rose 15 percent in the year to December 2024 – the most of any of the 50 biggest US cities.
Milwaukee, Philadelphia, Miami and Chicago all also saw double digit increases year-over-year.
In the year to December, home prices rose in all of the 50 most populous metropolitan areas. This is the first time this has happened since May 2022.
The price of homes in other former ‘affordable housing havens’ are also skyrocketing, according to data from Redfin
The typical home in one of America’s largest cities now costs $427,670, according to Redfin.
‘Places that have long been known as affordable places to live, like Cleveland and Milwaukee, are now seeing double-digit price increases – and that’s after home prices skyrocketed during the pandemic,’ said Redfin senior economist Elijah de la Campa.
‘Affordable housing havens have become harder and harder to come by; even places that saw some price relief last year, like Texas and Florida, are now seeing prices tick back up.’