Home price increases in 2022: Which cities saw the biggest jumps?

A Credit Karma Study

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Housing prices increased in many parts of the country in the past year, but some locations were more affected than others.

To determine where home prices went up the most in 2022, Credit Karma developed a methodology to score and rank 250 of the largest cities in the U.S. based on two factors.

  1. Year-over-year growth in median home sale price from June 2021 to June 2022
  2. Growth in median home sale price from January 2022 to June 2022

Jump to our full methodology at the end of this article.

Here’s a quick snapshot of the five cities with the greatest median home price increases, starting with the city that had the biggest rise in prices.

  1. Beaumont, TX
  2. Tyler, TX
  3. Irving, TX
  4. Dayton, OH
  5. Newark, DE

And a look at the five cities with the biggest decreases.

  1. Yonkers, NY
  2. Glendale, CA
  3. New York, NY
  4. Salinas, CA
  5. Canton, OH

Keep reading to learn more about the cities where home prices have increased the most and least.


Key findings on home price increases

The three cities that experienced the greatest median home price increases are in Texas: Beaumont, Tyler and Irving. But prices in all three cities remain lower than many areas of the country.

Of the 20 cities in the U.S. that had greatest price increases in 2022, more than half are either in Texas or Florida.

The three cities with the biggest price decreases were Yonkers, New York; New York City; and Glendale, California. Glendale saw a drop of 8.8% in median home price from January to June 2022. And Yonkers saw more-sustained decreases — it dropped 1.5% from January to June 2022, a much less pronounced decrease than Glendale experienced during that six-month period, but from June 2021 to June 2022, prices in Yonkers dropped 9.9%. 

Top 5 cities with the greatest median home price increases

Credit Karma used Redfin data to determine its rankings for the cities with the greatest increases and decreases in median home sale prices.

RankCityPrice change June 2021–June 2022 (%)Price growth January–June 2022 (%)
1Beaumont, TX66.7%52.7%
2Tyler, TX17.8%81.1%
3Irving, TX39.2%39.7%
4Dayton, OH40.5%31.2%
5Newark, DE42.9%21.8%

Top 5 cities with the greatest median home price decreases

RankCityPrice change June 2021–June 2022 (%)Price growth January–June 2022 (%)
1Yonkers, NY-9.90%-1.5%
2Glendale, CA6.4%-8.8%
3New York, NY0.0%-1.2%
4Salinas, CA1.8%-3.3%
5Canton, OH-9.1%9.5%

Top 5 cities with the highest home prices

Credit Karma used Redfin data to identify the cities with the highest and lowest median home prices in the country.

CityJune 2022 median home price
Sunnyvale, CA$1,875,000
San Francisco, CA$1,540,000
Bellevue, WA$1,512,000
Fremont, CA$1,465,000
San Jose, CA$1,380,000

Unsurprisingly, four of the five most expensive cities to buy a home in the U.S. are in California — the country’s fourth-most-expensive state after Hawaii, Washington, D.C., and Massachusetts.  

Sunnyvale, San Francisco, Bellevue and San Jose experienced modest price increases, while Fremont was among the top 20 cities with the greatest overall price decrease — coming in at 16th on our list.

Top 5 cities with the lowest home prices

CityJune 2022 median home price
Detroit, MI$99,200
Saginaw, MI$115,000
Dayton, OH$123,950
Toledo, OH$126,500
Canton, OH$127,250

The five cities with the lowest home prices are clustered in Ohio and Michigan. Canton and Saginaw had the fifth- and sixth-lowest price increase, while Dayton and Detroit had the fourth- and seventh-largest price increase. 

Toledo had a modest year-over-year price increase, with a bigger jump from January 2022 to June 2022.

Will U.S. home prices show a drop for 2022?

Across the 250 cities we analyzed, the average median home price increase from January to June 2022 was 14.31%. A combination of factors, including increased demand, decreased supply, pandemic-related supply-chain disruptions, and low interest rates combined to create a steep increase in housing prices in the last year. But home prices aren’t likely to continue their rapid rise indefinitely.

Interest rates have increased by more than three percentage points since the beginning of the year, home sales in October 2022 were down by 28.4% from October 2021, and mortgage applications are falling — all signals that the housing market may be cooling.

But real estate trends typically vary by location. Whether home prices may be decreasing near you and by how much depends in part on exactly where you live.

Why is rent so high right now?

Tips for mortgage shopping as home prices increase

Securing a mortgage is a critical step for most potential homebuyers. Here are some tips to help you navigate the process and zero-in on the best rate possible for your situation.

  • Get your credit in order. People with higher credit scores and solid credit reports typically qualify for lower interest rates. Go over your scores and reports carefully, and if your credit needs work, consider taking the time to improve it before applying for a mortgage — it may help you qualify for a lower rate. Be sure to dispute errors on your credit report if you find any.
  • Pay down debt. In general, you need a debt-to-income (or DTI) ratio of 43% or less to qualify for a mortgage, but lower is better, and requirements vary by lender. If your DTI is too high, work on reducing your debt before you begin house hunting.
  • Shop around. Rates vary from lender to lender. Get quotes from multiple lenders to help ensure you get the lowest possible rate.
  • Get preapproved. Providing a mortgage preapproval letter with your offer shows sellers you’re serious and can likely get financing. In general, sellers are more likely to consider offers from buyers who are preapproved.
  • Gather your documents. To process your application, lenders need a variety of home loan documents, which may include tax returns, pay stubs, W-2s or other proof of income, bank statements, investment statements, gift letters, photo ID and renting history (if applicable).

Methodology

  1. Year-over-year growth in median sale price from June 2021 to June 2022, sourced from Redfin
  2. Growth in median sale price from January 2022 to June 2022, sourced from Redfin

Sources