The Price of Urbanization: How Population Growth Drives Home Prices

In recent years, urbanization has been a significant driving force behind the growth of many cities, including New York City, Los Angeles, and Chicago, which saw a median sale price of $90.06414218293737 in 2025, with homes staying on the market for 90 days. According to the National Association of Realtors, this trend is expected to continue in top 10 booming U.S. cities where median list prices are skyrocketing in 2025.

In contrast, cities like Denver and Austin, which have been experiencing slower population growth, have seen a median price of $64.7448970907448, with homes staying on the market for 64 days. This difference of $25.31924479219257 in median price highlights the impact of urbanization on housing markets, and how rising inventory levels can shape buyer decisions.

Moreover, cities like San Francisco and Seattle, which have seen a surge in tech-industry jobs, have a median price of $29.491353422063483, with homes staying on the market for 29 days. This lower median price and shorter days on market indicate a more saturated housing market, potentially due to a slower population growth rate. As we step into 2025, one of the most significant factors to consider is the impact of mortgage rate cuts on the housing market.

For a more comprehensive understanding of the impact of urbanization on housing markets, I recommend exploring the following resources:

• How tech-driven hospitality is changing the game
• The short-term rental market outlook
• The impact of rising inventory levels on buyer decisions

By examining the data and incorporating insights from related resources, we can gain a deeper understanding of the complex relationships between urbanization, population growth, and housing markets.