FHFA: U.S. Home Prices Rose 2.9% YOY
Home prices were flat from Q1 to Q2 2025 but rose 2.9% year-over-year, with gains in 46 states. Florida is among those that saw declines.
WASHINGTON — U.S. house prices rose 2.9% between the second quarter of 2024 and the second quarter of 2025, according to the U.S. Federal Housing House Price Index (FHFA HPI). House prices for the second quarter of 2025 remained unchanged compared to the first quarter of 2025. FHFA’s seasonally adjusted monthly index for June was down 0.2% from May.
Significant findings
- Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.
- House prices rose in 46 states between the second quarter of 2024 and the second quarter of 2025. The five states with the highest annual appreciation were 1) New York, 8.0%; 2) Connecticut, 7.8%; 3) New Jersey, 7.5%; 4) Mississippi, 7.3%; and 5) Illinois, 6.7%. House prices were down in four states and District of Columbia. In Florida, prices were down 1.4%. The District of Columbia experienced the most significant price decline at 7.6%.
- House prices rose in 81 of the 100 largest metropolitan areas over the previous four quarters. The annual price increase was the greatest in Rochester, NY at 10.3%. The metropolitan area that experienced the most significant price decline was North Port-Bradenton-Sarasota, FL at 11.2%.
- All nine census divisions had positive house price changes year-over-year. The Middle Atlantic division recorded the strongest appreciation, posting a 6.7% increase from the second quarter of 2024 to the second quarter of 2025. The Pacific division recorded the smallest four-quarter appreciation, at 0.9%.
The FHFA HPI is a comprehensive collection of publicly available house price indexes that measure changes in single-family home values based on data that extend back to the mid-1970s from all 50 states and over 400 American cities. It incorporates tens of millions of home sales and offers insights about house price changes at the national, census division, state, metro area, county, ZIP code, and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.
Source: Federal Housing Finance Agency (FHFA)
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