14 key housing trends of the year: record house prices, mortgage rate fluctuations, and sales fluctuations
In 2024, the housing market mirrored the challenges of 2023 with low inventory, high prices, and fluctuating mortgage rates. This led to soaring house prices and historically low affordability, making it a tough year for homebuyers. Nearly 40% of renters believed they may never own a home.
The median homebuying age hit a record 56 years, seven years older than in 2023. Many buyers were priced out of the market, while others waited for affordability to improve. The presidential election added volatility and unpredictability to the market.
Despite the challenges, there were some positive developments such as increased housing inventory, declining inflation, and improved renter affordability.
Below are the key trends and data that defined the 2024 housing market.
All data is from January to November 2024, sourced from Redfin, Rent., U.S. Census Bureau, FRED, NAR, and public records. For metric definitions, refer to our metrics definitions page.
1. Record High Home Prices
The U.S. median sale price hit an all-time high of $442,000 in July, surpassing the previous record of $432,000 in 2022. House prices reached record highs for nine consecutive weeks and ended the year with a median sale price of $428,200. Low supply and high demand contributed to the price surge.
Daryl Fairweather, Redfin Chief Economist, noted the impact of supply and demand on prices, with affordability remaining a challenge, especially for low-income residents.
The top six most expensive metros were all in California, with San Jose leading as the most expensive area for homebuyers in 2024.
2. San Jose Tops Most Expensive Metro List
San Jose emerged as the most expensive metropolitan area for homebuyers in 2024, with an average monthly median sale price of $1,566,100. House prices rose across most markets, except for Austin and San Antonio, which saw year-over-year decreases.
Affordability remained a major concern, especially among lower-income groups, impacting the presidential election.
- California dominated the list of most expensive metros.
- Anaheim experienced the largest year-over-year price increase, while Rust Belt metros remained among the least expensive.
3. Detroit: Least Expensive Metro
The average monthly median sale price in Detroit was $190,865, up 8.5% from 2023. Affordability challenges persisted in many affordable metros, attracting relocating homebuyers and driving price growth.
- Affordable metros saw significant year-over-year price gains, while Rust Belt and East Coast areas struggled with supply shortages.
- Austin and San Antonio were exceptions, with year-over-year price drops and improved affordability.