A variety of factors influence home prices. However, there is at least one almost universal principle that explains the nature of housing prices.
"Housing is driven by supply and demand," said Chandler Crouch, founder and principal broker at Chandler Crouch Realtors.
Prospering business climates, domestic migrations, home inventories — all of these factors can impact supply and demand in housing, said Crouch. With these factors in mind, GoBankingRates.com surveyed the 100 most populous cities in the U.S. to identify which cities are experiencing the fastest increases in home prices.
From the Bay Area to South Florida, here are 20 cities where home prices are skyrocketing.
This article originally appeared on GoBankingRates.
- June 2016 Median List Price: $899,000
- June 2015 Median List Price: $799,000
- Year-Over-Year Change: 12.52%
Prices across the Bay Area are high, and Fremont's housing market is on fire. Home prices have risen by roughly $100,000 over one year while home values have soared by nearly $400,000 in the last five years.
- June 2016 Median List Price: $178,000
- June 2015 Median List Price: $157,899
- Year-Over-Year Change: 12.73%
Garland is part of the Dallas-Fort Worth metropolitan area, a region that's experiencing major developments in its housing market. Home construction is on the rise, with the Dallas-Fort Worth area recording the most home starts in the nation, according to a study by Metrostudy.
The whole Dallas housing market is doing well, but home sales in Garland are especially high. With a median sales price below $300,000, Garland’s affordability lures people into buying homes. That affordability, though, won’t last if demand keeps pushing the median list price up year-over-year.
- June 2016 Median List Price: $450,000
- June 2015 Median List Price: $399,000
- Year-Over-Year Change: 12.78%
Miami is facing a common issue with its housing market: Home sales have dropped, but prices keep going up. Both condo and single-family home sales have dipped in the second quarter 2016 compared to last year, yet prices for both have increased by over 5 percent.
According to Curbed.com, foreign investment could account for the rise in home prices. Foreigners from Brazil, Latin America and Europe have helped Miami’s condo and housing market recover from the housing crash. But the uncertain global financial market, stronger U.S. dollar and weakening foreign economies are undermining Miami’s comeback
- June 2016 Median List Price: $589,000
- June 2015 Median List Price: $519,000
- Year-Over-Year Change: 13.49%
Across the bay from San Francisco, Oakland is an affordable alternative for both businesses and homebuyers alike. Peopleshopping for homes in the area are putting more emphasis on home prices rather than location.
Businesses like Uber are relocating operations to Oakland, driving up consumer demand for housing. As a result, home prices have jumped up 13.49 percent since last summer.
- June 2016 Median List Price: $625,000
- June 2015 Median List Price: $549,900
- Year-Over-Year Change: 13.66%
Boston’s housing market might be stable and low-risk, but that doesn’t equate to low home prices. In fact, the market’s stability, along with economic growth in Boston, drove home prices up by 13.66 percent year-over-year.
Across the Boston area, the housing market is full of activity — fortunately, much of it is healthy. The increase in home prices is more closely aligned with what people owe on their homes. Homeowners, therefore, have more flexibility to sell, which has helped create a modest increase in inventory.
Charlotte, North Carolina
- June 2016 Median List Price: $257,000
- June 2015 Median List Price: $225,000
- Year-Over-Year Change: 14.22%
Charlotte is going through a housing market boom that’s sustainable and likely to continue through 2016, reports Charlotte Magazine. Although some industry analysts have mentioned a possible downturn, Charlotte prices are healthily rising behind the national average.
- June 2016 Median List Price: $399,900
- June 2015 Median List Price: $350,000
- Year-Over-Year Change: 14.26%
Portland home prices are skyrocketing for many reasons, one of them being low supply. Home construction has lagged behind, leading to a shortage of affordable houses.
Although high prices are bad, the reasons for the increase in prices are mostly good. Low mortgage rates, solid wage growth and a robust job market are all pushing Portland’s median list price up. On the negative side, government fees and lack of land are also contributing to higher prices.
Kansas City, Missouri
- June 2016 Median List Price: $169,000
- June 2015 Median List Price: $147,000
- Year-Over-Year Change: 14.97%
Kansas City home prices might be rising due to the number of businesses moving to town, notably Google and Sprint. Prices could also be rising because the city was named the most affordable place to live with the best schools, according to investment firm HomeUnion.
- June 2016 Median List Price: $564,999
- June 2015 Median List Price: $490,000
- Year-Over-Year Change: 15.31%
Home prices in Washington, DC, reached record heights in June, with the median list price up 15.31 percent from last year. In fact, home prices in DC have returned to pre-recession levels.
- June 2016 Median List Price: $629,000
- June 2015 Median List Price: $542,500
- Year-Over-Year Change: 15.94%
This year, San Diego home prices reached levels not seen in almost nine years. Low inventory is affecting home sales, though, sales are still up from last year.
Other factors at work are driving home prices higher, including low mortgage rates, low levels of unemployment and increased consumer confidence.
- June 2016 Median List Price: $320,000
- June 2015 Median List Price: $274,900
- Year-Over-Year Change: 16.41%
Marietta is the first, but not the only, Georgia city where home prices are skyrocketing. Real estate market experts HomeVestors and Local Market Monitor named Marietta, as part of the Atlanta-Sandy Springs-Marietta area, one of the best markets for real estate investing.
- June 2016 Median List Price: $269,000
- June 2015 Median List Price: $230,950
- Year-Over-Year Change: 16.48%
Like other major metro areas on the list, Atlanta’s housing market is benefiting from low unemployment and mortgage rates and an overall positive outlook among consumers. Home prices in Atlanta are rising faster than the national average, according to the S&P CoreLogic Case-Shiller Indices.
Though homes are getting more expensive, there are still Atlanta neighborhoods with reasonable home prices. For a millennial first-time homebuyer, East Point offers some of the most affordable houses. For a family with school-age children, look to Suwanee, Woodstock and Canton for good deals.
- June 2016 Median List Price: $569,998
- June 2015 Median List Price: $489,000
- Year-Over-Year Change: 16.56%
Seattle leads the major cities of the Northwest with its 16.56 percent year-over-year jump in home prices. Multiple experts, including Zillow senior economist Aaron Terraza, blame the Bay Area in part for the price surge. As San Francisco real estate prices soar, both tech workers and companies have fled to Seattle.
- June 2016 Median List Price: $229,000
- June 2015 Median List Price: $195,000
- Year-Over-Year Change: 17.44%
Orlando home prices are showing impressive growth year-on-year, not unlike other Florida cities. Prices are rising because Orlando and areas of Central and South Florida are recovering from the housing market faster than other places.
As Orlando’s housing market recovers, the supply of available houses has diminished. Low inventory of homes is forcing home prices up but undercutting the number of sales. To get a better idea of how hot the housing market is, as of July 2016, Orlando home prices have increased for the last 60 months in a row.
- June 2016 Median List Price: $299,900
- June 2015 Median List Price: $254,900
- Year-Over-Year Change: 17.65%
Like Orlando, the number of available houses has not caught up with demand. With inventory down year-over-year, Nashville’s home prices are rising as tight supply and lower rates fuel price increases. A good job market in Nashville hasn’t hurt home prices either.
Fort Wayne, Indiana
- June 2016 Median List Price: $123,900
- June 2015 Median List Price: $105,000
- Year-Over-Year Change: 18.00%
This Indiana town has a hot housing market, according to Realtor.com. Fort Wayne offers affordable home prices and costs as little as $54 per square foot.
Realtors are saying houses aren’t sitting around long before they’re bought up. Realtor Coldwell Banker reported a 20 percent jump in home closings this year. So long as inventory is low and demand high, Fort Wayne home prices could continue their 18 percent year-over-year rise.
- June 2016 Median List Price: $264,995
- June 2015 Median List Price: $218,500
- Year-Over-Year Change: 21.28%
Tampa Bay area home prices are feeling the heat of low inventory and high demand. Home prices rose 17 percent in June, the second-highest jump of any Florida metro area.
- June 2016 Median List Price: $370,500
- June 2015 Median List Price: $299,900
- Year-Over-Year Change: 23.54%
You’ve got to be quick on the draw if you’re buying a home in Dallas. Houses are selling extremely fast. Even houses that were listed for $3 to $5 million are now seeing their home values worth $7 to $10 million.
Dallas home prices are benefiting from an influx of businesses, and the state as a whole sees 1,200 people move there daily. Real estate trusts and investors are contributing to the housing price spike as they currently build 35,000 apartments in Dallas county.
- June 2016 Median List Price: $735,000
- June 2015 Median List Price: $589,000
- Year-Over-Year Change: 24.79%
Across the five boroughs of New York City, home prices are climbing higher and higher. Manhattan set a record in the second quarter 2016 with a $1,759 per square foot cost. Home prices in Brooklyn and Queens have risen since the beginning of the year, with Queens prices soaring by 10 percent since the first quarter.
St. Petersburg, Florida
- June 2016 Median List Price: $219,900
- June 2015 Median List Price: $159,900
- Year-Over-Year Change: 37.52%
Across Tampa Bay from Tampa, St. Petersburg has a housing market that’s blazing. The formula for the spike in home values is familiar: low inventory and high demand. But some of the details about the market are incredible.
The huge demand for cheap homes in downtown St. Petersburg and the surrounding area is pushing home prices up to and over their asking prices. In fact, 24 out of the 69 houses sold in the St. Petersburg zip code 33713 sold for their full listing price or more.