Ask any American and they’ll tell you: life is more expensive now than it was three years ago. With inflation driven by ever-changing political and economic conditions, it can feel hard to catch up and make meaningful headway on goals like starting a family or owning a home.
In 2023, the median sale price of existing homes across the U.S. was $394,100, according to the National Association of REALTORS®. Fast forward to 2026, and that number has jumped 10.3% to $434,900. But not all areas were hit equally–some regions of the U.S. saw as much as a 29.2% increase in home prices over the same timeframe, while others saw less than 5%.
To understand where these impacts have hit hardest, Zoocasa analyzed data from nearly 200 major cities to see where prices have changed the most since 2023. What we found is that some of America’s most affordable cities have seen prices driven up substantially, while only a few areas saw prices remain stable or even decline.
Affordable Illinois Cities Saw 30-40% Increase in Home Prices
Topping the list are two Illinois cities, Springfield and Rockford.
Springfield: As the capital of Illinois and home of Abraham Lincoln, Springfield has historically been a fairly small city with more accessible entry points for housing compared to nearby Chicago. In 2023, the median home sale price was $163,200–that’s more than $200,000 below the national average. But in 2026, that number jumped 39.2% to $227,200.
Rockford: The city of Rockford is in a similar position. From 2023 to 2026, home prices jumped 37.9%, from $172,600 in 2023 to $238,000 in 2026. Located just outside of Chicago, the city offers over 40,000 acres of greenspace and vibrant arts scene for those looking to escape from big-city life.
Champaign-Urbana: Ranked 6th overall, another Illinois area worth mentioning is Champaign-Urbana, home to the University of Illinois. Home prices increased 30.9% since 2023, from $200,900 to $262,900.
Peoria: Lastly, rounding out Illinois’ place in the top 20 is Peoria, which saw its median home price rise 28% to $189,900. Home to heavy machinery company Caterpillar Inc., Peoria has a long history and culture as the oldest European settlement in the state. Situated between Chicago and St. Louis, Peoria is one of the smaller cities on this list, and its prices reflect that, sitting at less than half of the national average.
Even so, buying a home could still be difficult for many local Illinoisans due to other underlying factors.
What’s Driving the Cost Increase in Illinois?
Despite what might be happening in most cities, home prices actually aren’t being driven up by a rising population in Springfield, Rockford and Peoria. In fact, U.S. Census Bureau data shows that the population in all three cities has actually been slowly declining in recent years. Rather, local REALTOR® groups point to low supply and a lack of new housing as the key factors driving prices up.
Although the population in Champaign-Urbana has increased in the last five years, the area faces the same supply issue as Springfield and Rockford, increasing prices.
Housing prices in these cities are considered affordable compared to national rates, but likely not for the average worker in the area. In Q1 2023, the average weekly wage was $1,565–in Q1 2026, that number was $1,731, according to the U.S. Bureau of Labor Statistics. That’s an overall wage growth of about 10.6% over the past three years, which falls far below the pace of change seen in housing prices.
Overall, this puts each city in a bind–while appreciating home prices can mean positive gains for existing homeowners or those moving in from out of state with higher wage ceilings, it can also mean moving the bar for the people who already live there to afford a home.
Wisconsin’s Price Spike Lands it 2 Top 20 Rankings
Two Wisconsin cities shake up the East Coast and Illinois trend of the other top 20 largest price increases:
- Racine: 33.5% increase
- Appleton: 27.7% increase
Racine: Located just south of Milwaukee and north of Chicago, Racine offers stunning Lake Michigan views paired with strong local culture and a robust industrial economy. Ranking fourth overall, the median price for a Racine home reached $349,900 in 2026, marking an over 33% increase.
Similar to areas of Illinois, low housing inventory, lagging construction and high demand are driving prices up in this area, although local prices still sit below the national average.
Appleton: Ranking 12th overall in its price percent change is Appleton, known for its bright festival culture, performing arts scene and local history. Appleton home prices reached $363,500 in 2026, marking a nearly $80,000 increase over three years.
The strain on Northeastern Wisconsin’s housing market is driven by high demand and low supply, local reporting shows. As a consequence of this, higher-income renters are also now contending with lower-income renters for more affordable units as the housing shortage continues, according to the report.
Collectively, the housing market in Wisconsin is feeling the pressure alongside Illinois, marking two midwestern states whose traditionally more affordable markets are being challenged by current economic conditions.
Northeast Cities See Largest Price Growth Over Time
Unsurprisingly to anyone on the East Coast, several Northeastern cities topped the list of highest price percentage increases since 2023.
New York
New York in particular has several cities within the top 20 of this list, in both Upstate and Downstate New York.
- Rochester: 31.3% increase
- Dutchess County-Putnam County: 30.4% increase
- Syracuse: 27.7% increase
- New York-Jersey City-White Plains: 27.4% increase
Rochester ranks fifth on the list of highest percentage increases over time, although the median home price still sits under the national median at $304,400. This is similar to Syracuse, ranked 13th, which increased about $60,000 to $274,100.
On the flip side, Downstate New York home prices continue to rise above the national average, with Dutchess County-Putnam County sitting at $574,190 and New York-Jersey City-White Plains at $795,100.
Despite their massive geographic differences, the story between Illinois and New York is largely the same: high demand for housing and limited supply. The difference for New York is that this problem has persisted for much longer, resulting in gaps in even the wealthiest, most sought-after luxury communities.
New Jersey
Typically running not far behind New York prices, New Jersey also landed a few cities in the top 20, including:
- Atlantic City-Hammonton: 29.5% increase
- Newark: 27.4% increase
Local real estate professionals link the increased housing costs in New Jersey to an influx of New York transplants looking for a more affordable entry point without compromising on accessibility to big-city living. Paired with a similar trend of low inventory, New Jersey’s housing market is poised to continue facing price surges if more inventory isn’t on the market soon.
Connecticut
Three Connecticut cities also made the top 20, including:
- New Haven-Milford: 29.3% increase
- Hartford-West Hartford-East Hartford: 28.3% increase
- Bridgeport-Stamford-Norwalk: 27.5% increase
Both New Haven-Milford and Hartford come in relatively close to the national average at $461,400 and $456,700, respectively. Bridgeport-Stamford-Norwalk, on the other hand, clocks in at nearly double the national average at $885,100. The Bridgeport area actually had the highest median home prices of any metro in the top 20, including Downstate New York.
Recent reports coming out of Connecticut point to low inventory and high demand as reasons behind the ever-growing prices, with many buyers willing to pay above asking price to secure a home.
Top 3 Price Declines Located in Southeast Florida
On the flip side of rising prices in the Midwest and Northeast, there were a handful of Southern cities that saw prices level out or even decline, specifically in Florida.
Of the bottom five cities on this list, the bottom three are in Florida:
- Cape Coral-Fort Myers, FL: 8.3% decline
- North Port-Sarasota-Bradenton, FL: 5.9% decline
- Punta Gorda, FL: 5.3% decline
- Bozeman, MT: 3.2% decline
- San Antonio-New Braunfels, TX: 3.2% decline
All three Florida cities are on the southwest coast of Florida. Unlike the circumstances seen in other areas of the nation, Florida has the inverse problem of too much inventory paired with skyrocketing insurance premiums.
The average annual cost for home insurance in Florida is $8,491, more than triple the next-highest state of Hawaii, according to Insurify. Paired with overinflated prices seen in the area during the Covid-19 pandemic and rising risks of floods, homes in the area are sitting on the market for longer, bringing prices down as inventory rises.
The only two cities that saw a 0% change in home prices from 2023 to 2026 were both in Florida: Panama City and Ocala, in northwest and central Florida. Beyond price decreases and stable prices, several Florida cities also saw modest gains above the national average, such as Gainesville (1.7% increase), Sebastian-Vero Beach (2.3% increase) and Tampa-St. Petersburg-Clearwater (2.5%).
These numbers paint a complex picture for the state of Florida’s housing market, which will likely only be complicated further as mortgage rates rise and natural disaster risks increase.
Finding The Market That Works For You
Ultimately, the data shows there’s much to consider for the potential American homebuyer, but it’s not a decision that is forever out of reach. Although prices have spiked in some areas, several are still at or well below the national average.
For larger metro areas, the decision is likely one prospective buyers have been facing for a long time: wait it out for the unicorn dream home below median price or find a more suburban area you’re willing to compromise on.
In smaller cities, buyers likely have more options if they’re willing to live farther from the city center or in neighboring towns.
When it comes to making these decisions, you don’t have to do it alone. Zoocasa has agents across the nation who can help you find the right home for you. Reach out today.
