Midwest and southern states saw some of the fastest growing demand for housing so far in 2024, research shows.
The data, published by Freddie Mac in April, analyzed purchase application growth across the country to calculate where housing demand had increased the most.
Read more: What Is a Mortgage? Types & How They Work
Maine saw the highest jump in housing demand, with a 31.1 percent year-to-date increase over 2023 purchase application growth. South Dakota was hot on the Pine Tree State's heels at 28 percent, seeing the most growth in a region of big increases, as illustrated in the map below.
Many southern states too are seeing a noticeable increase in demand for housing. Kentucky, Mississippi, Arkansas, and Oklahoma are among this year's more popular locations, with 14.5 percent, 19.4 percent, 19.8 percent, and 20.4 percent increases in applications respectively.
Hawaii, which saw a spike in its population in 2020, also saw housing demand rise by 23.1 percent.
States with the smallest increases in application growth this year were Maryland with a 0.3 percent increase and Connecticut with 0.4.
Georgia and Florida were next with 0.5 percent and 0.8 percent in turn.
Read more: First-Time Homebuyer Guide
Freddie Mac attributed these low figures to the combined effect of high house prices weighing on homebuyers while high mortgage rates rendered homeowners unwilling to sell and give up their current low rate.
Meanwhile, demand appears to have fallen in three states – Alaska, Oregon and New York, although only slightly in the cases Alaska and Oregon.
The increase in housing demand almost across the board in the U.S. comes even as prices and mortgage rates remain high. The Federal Reserve recently convened but declined to reduce interest rates despite a fall in inflation. The Fed's next meeting is currently scheduled for June 11- June 12.
Read more: How to Buy a House With Bad Credit
The median home-sale price in the United States was $393,500 in 2024, an increase of 4.8 percent on the previous year, according to Bankrate.
Freddie Mac said in its report that "given the current lack of inventory, it appears that people have no choice but to search in the higher price points for their homes," citing a "significant" growth in purchase demand for homes priced about $800,000.
"The affordability issue remains a primary concern in the housing market," the report added.
America's housing market could see some big changes coming this summer, as the National Association of Realtors recently settled an antitrust lawsuit with realtors worth hundreds of millions of dollars over claims that sellers had been hit with unnecessary costs.
Do you have a story we should be covering? Do you have questions about the U.S. housing market? Contact [email protected]
