Inflation drives up prices over time, but in some U.S. cities, home values have surged far beyond what inflation alone would justify. In fact, prices have more than doubled since 2015 in several major markets.
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A recent Zoocasa analysis compared inflation-adjusted 2015 home prices to actual 2025 prices across 50 metro areas. The results reveal where housing costs have outpaced inflation the most.
Here are the five cities with the biggest gaps between expected and actual home prices.
1. San Jose, California
- 2015 median home price adjusted for inflation: $1,223,343
- Actual median home price in 2025: $2,020,000
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2. San Francisco
- 2015 median home price adjusted for inflation: $1,017,142
- Actual median home price in 2025: $1,320,000
3. San Diego
- 2015 median home price adjusted for inflation: $693,635
- Actual median home price in 2025: $1,036,500
4. Los Angeles
- 2015 median home price adjusted for inflation: $590,874
- Actual median home price in 2025: $862,600
5. New York
- 2015 median home price adjusted for inflation: $528,212
- Actual median home price in 2025: $725,300
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This article originally appeared on GOBankingRates.com: 5 Cities Where Home Prices Are Far Outpacing Inflation
