US Housing Market Heats Up: Detroit Leads Pack With Over 8% Annual Growth
The principal barometer of U.S. home prices shows a significant uptick in the housing market, with home prices in major U.S. cities soaring at the fastest annual rate since November 2022.
The latest S&P CoreLogic Case-Shiller Index covers all nine U.S. census divisions. The gauge reported a 4.8% annual increase in October 2023, up from a 4% change in the previous month.
This upswing aligns with market expectations, primarily fueled by a persistent shortage of homes for sale, which has been a major factor driving up home prices.
The 10-City Composite showed a 5.7% increase, up from 4.8% in the previous month, while the 20-City Composite posted a year-over-year uptick of 4.9%, up from 3.9%.
Index Component
Annual Increase (Oct. 2023)
Month-over-Month Change (Oct./Sep. 2023)
U.S. National Index
4.8%
0.2%
10-City Composite
5.7%
0.2%
20-City Composite
4.9%
0.1%
Detroit Leads, Portland Lags Behind
Detroit was the fastest-growing market for the second month in a row, registering an 8.1% annual gain. San Diego and New York followed, with 7.2% and 7.1% gains, respectively.
The Midwest and Northeast regions were the fastest-growing markets, while the Southwest and West regions lagged behind other regions for over a year.
According to Brian D. Luke, head of commodities, real and digital assets at S&P DJI, “home prices leaned into the highest mortgage rates recorded in this market cycle and continued to push higher. With mortgage rates easing and the Federal Reserve guiding toward a slightly more accommodative stance, homeowners may be poised to see more appreciation."
Portland experienced a 0.6% decline in home prices compared to the previous year. This made it the only city among the 20 cities covered in the S&P CoreLogic Case-Shiller Index to report lower prices in October compared to the year before.
Metropolitan Area
Change (Oct. 2023 vs. Sep. 2023)
Change (Oct. 2023 vs. Oct. 2022)
Detroit
0.3%
8.1%
San Diego
-0.1%
7.2%
New York
0.5%
7.1%
Miami
0.6%
6.7%
Chicago
0.2%
6.9%
Boston
0.3%
6.6%
Cleveland
0.2%
6.4%
Los Angeles
0.4%
6.1%
Charlotte
0.3%
6.0%
Atlanta
0.2%
5.3%
Washington
-0.3%
4.7%
Minneapolis
-0.3%
2.8%
Tampa
0.0%
2.3%
Denver
-0.6%
1.6%
San Francisco
-0.6%
1.6%
Seattle
-0.5%
1.5%
Dallas
-0.3%
1.2%
Phoenix
0.6%
0.9%
Las Vegas
0.3%
0.1%
Portland
-0.9%
-0.6%
Market Reactions
The real estate sector, as gauged by the Real Estate Select Sector SPDR Fund (NYSE:XLRE), exhibited a steady start on Monday, in a generally subdued trading session following the Christmas holidays.
Particular standouts on Monday included Office Properties Income Trust (NASDAQ:OPI), Compass, Inc. (NYSE:COMP), and Net Lease Office Properties (NYSE:NLOP), up 3.7%, 3.3% and 2.4% respectively.
Since the beginning of the year, the XLRE ETF has risen by 7%, signaling a robust rebound from the 29% slump it experienced in 2022.
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: Home Prices Housing MarketMacro Economic Events REIT Econ #s Top Stories Economics Real Estate
