Chicago, NYC Lead May Home Prices as West and South Slide, Widening 9-Point U.S. Divide
Updated
Updated · Newsweek · Jul 29
Chicago, NYC Lead May Home Prices as West and South Slide, Widening 9-Point U.S. Divide
3 articles · Updated · Newsweek · Jul 29
Summary
Chicago and New York City posted the strongest annual home-price gains in May, while Las Vegas, Seattle, Denver and Tampa all declined, extending a sharp regional split in the U.S. housing market.
Chicago prices rose 6.9% for a third straight month of national leadership, ahead of New York City at 4.2% and Cleveland at 3.1%; nationally, single-family home values increased 1.1% from a year earlier.
Inflation at 4.2% still outpaced that national gain for a 12th straight month, meaning home values continued to fall in real terms even as a few Northeast and Midwest metros lifted the headline index.
Return-to-office mandates, persistent demand and tight inventory are supporting older urban markets, while Sun Belt and Western cities are facing weaker demand and a supply glut after pandemic-era building booms.
Millions of missing affordable homes and restrictive zoning remain the broader constraint, with economists pointing to upzoning and faster permitting as the main path to easing the divide.