15 U.S. Cities Most Impacted by High Interest Rates

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Editor's Note: This story originally appeared on Construction Coverage.

The path to homeownership has been a tumultuous one for prospective buyers in recent years, characterized by a series of fluctuating trends and economic uncertainties.

While buyers benefited from historically low interest rates early in the COVID-19 pandemic, they also faced record price increases due to constrained inventory and intense competition.

Now, the landscape has shifted, but not in ways that have provided much relief.

Although higher interest rates have moderated home prices to some extent, the adjustments have not proven sufficient to counterbalance the heightened borrowing costs associated with these elevated rates.

Compounding these challenges is the enduring scarcity of housing inventory, which persists across various cities, thereby sustaining relatively high price levels and perpetuating affordability concerns for aspiring homeowners.

The following is a breakdown of the major U.S. metropolitan areas most impacted by high interest rates. The analysis was conducted by Construction Coverage. For more information on the analysis, refer to the methodology section at the end.

1. Miami-Fort Lauderdale-Pompano Beach, FL

Fort Lauderdale, Florida
Solarisys / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 71.9%
  • Total change in mortgage payment (2022-present): $1,040
  • Mortgage payment for median-priced home (current): $2,486
  • Mortgage payment for median-priced home (2022): $1,447
  • Median home price (current): $477,917
  • Median home price (2022): $389,857

2. Hartford-East Hartford-Middletown, CT

Hartford, Connecticut
Sean Pavone / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 71.2%
  • Total change in mortgage payment (2022-present): $736
  • Mortgage payment for median-priced home (current): $1,770
  • Mortgage payment for median-priced home (2022): $1,034
  • Median home price (current): $340,255
  • Median home price (2022): $278,718

3. Rochester, NY

Rochester, NY
debra millet / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 68.3%
  • Total change in mortgage payment (2022-present): $494
  • Mortgage payment for median-priced home (current): $1,216
  • Mortgage payment for median-priced home (2022): $723
  • Median home price (current): $233,753
  • Median home price (2022): $194,713

4. Orlando-Kissimmee-Sanford, FL

Orlando, Florida
aphotostory / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 62.6%
  • Total change in mortgage payment (2022-present): $784
  • Mortgage payment for median-priced home (current): $2,038
  • Mortgage payment for median-priced home (2022): $1,253
  • Median home price (current): $391,705
  • Median home price (2022): $337,802

5. Buffalo-Cheektowaga, NY

Buffalo, New York
Atomazul / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 61.6%
  • Total change in mortgage payment (2022-present): $486
  • Mortgage payment for median-priced home (current): $1,274
  • Mortgage payment for median-priced home (2022): $788
  • Median home price (current): $244,825
  • Median home price (2022): $212,384

6. Milwaukee-Waukesha, WI

Milwaukee homes
Henryk Sadura / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 61.6%
  • Total change in mortgage payment (2022-present): $650
  • Mortgage payment for median-priced home (current): $1,705
  • Mortgage payment for median-priced home (2022): $1,056
  • Median home price (current): $327,778
  • Median home price (2022): $284,468

7. Providence-Warwick, RI-MA

Thomas Street in College Hill, Providence, Rhode Island
quiggyt4 / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 61.5%
  • Total change in mortgage payment (2022-present): $901
  • Mortgage payment for median-priced home (current): $2,366
  • Mortgage payment for median-priced home (2022): $1,465
  • Median home price (current): $454,846
  • Median home price (2022): $394,896

8. Columbus, OH

Brickstone townhomes in Columbus, Ohio.
Eric Glenn / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 60.1%
  • Total change in mortgage payment (2022-present): $592
  • Mortgage payment for median-priced home (current): $1,576
  • Mortgage payment for median-priced home (2022): $984
  • Median home price (current): $302,968
  • Median home price (2022): $265,279

9. Cleveland-Elyria, OH

Cleveland, Ohio
Rudy Balasko / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 60.1%
  • Total change in mortgage payment (2022-present): $422
  • Mortgage payment for median-priced home (current): $1,123
  • Mortgage payment for median-priced home (2022): $702
  • Median home price (current): $215,913
  • Median home price (2022): $189,131

10. Tampa-St. Petersburg-Clearwater, FL

Tampa, Florida
Ilya Images / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 60.0%
  • Total change in mortgage payment (2022-present): $733
  • Mortgage payment for median-priced home (current): $1,954
  • Mortgage payment for median-priced home (2022): $1,221
  • Median home price (current): $375,562
  • Median home price (2022): $329,064

11. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

Homes in Philadelphia
Olga V Kulakova / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 59.8%
  • Total change in mortgage payment (2022-present): $676
  • Mortgage payment for median-priced home (current): $1,807
  • Mortgage payment for median-priced home (2022): $1,131
  • Median home price (current): $347,371
  • Median home price (2022): $304,737

12. Richmond, VA

Downtown Richmond, Virginia
Felix Mizioznikov / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 59.8%
  • Total change in mortgage payment (2022-present): $692
  • Mortgage payment for median-priced home (current): $1,850
  • Mortgage payment for median-priced home (2022): $1,158
  • Median home price (current): $355,534
  • Median home price (2022): $312,034

13. Oklahoma City, OK

Homes in Oklahoma City
Trong Nguyen / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 58.9%
  • Total change in mortgage payment (2022-present): $443
  • Mortgage payment for median-priced home (current): $1,194
  • Mortgage payment for median-priced home (2022): $752
  • Median home price (current): $229,529
  • Median home price (2022): $202,550

14. Boston-Cambridge-Newton, MA-NH

Boston, Massachusetts
Jorge Salcedo / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 57.9%
  • Total change in mortgage payment (2022-present): $1,267
  • Mortgage payment for median-priced home (current): $3,457
  • Mortgage payment for median-priced home (2022): $2,190
  • Median home price (current): $664,491
  • Median home price (2022): $590,213

15. Cincinnati, OH-KY-IN

Overview of Cincinnati Ohio
Amy Nichole Harris / Shutterstock.com
  • Percentage change in mortgage payment (2022-present): 57.3%
  • Total change in mortgage payment (2022-present): $515
  • Mortgage payment for median-priced home (current): $1,414
  • Mortgage payment for median-priced home (2022): $899
  • Median home price (current): $271,766
  • Median home price (2022): $242,207

Methodology

Investing
crazystocker / Shutterstock.com

To determine the locations where homebuyers are most impacted by rising interest rates, researchers at Construction Coverage analyzed the latest data from Zillow’s Zillow Home Value Index (ZHVI), a measure of typical home value, and Freddie Mac’s Primary Mortgage Market Survey.

The researchers ranked metros according to the percentage change in the hypothetical monthly mortgage payment for a median-priced home between February 2022 and February 2024, factoring in changes in mortgage rates and home prices. In the event of a tie, the metro with the largest total change in mortgage payment was ranked higher.

The monthly mortgage payments were calculated by assuming a 30-year fixed rate mortgage with a 20% down payment.

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