Housing Wealth Remains Elevated Nationwide
Home prices rose in most U.S. metros in late 2025. Florida saw some price softening tied to higher inventory, while homeowners continue to hold significant equity.
CHICAGO — Home prices are still rising in the majority of metro areas across the country, but with growth slowing and affordability improving, more hopeful buyers may be finding a long-awaited opening.
Seventy-three percent – or 168 – of the 230 metro markets tracked saw home prices rise year-over-year during the final quarter of 2025, and 12 of those markets even saw double-digit price gains, the National Association of Realtors®’ latest quarterly report shows.
Overall, the national median single-family home price was up 1.2% in the fourth quarter compared with the fourth quarter of 2024, reaching $414,900. While the South and West appear to be experiencing more price moderation, the Northeast and Midwest regions are proving more resilient. In the Northeast, median home prices surged 5.5% annually to $514,600 in the fourth quarter, while the most affordable region in the country – the Midwest – posted a 4.13% increase annually, reaching a $317,100 median, NAR’s data shows.
“Most metro markets continue to see record-high housing wealth,” says Lawrence Yun, NAR’s chief economist.
NAR’s data shows that a typical U.S. homeowner has accumulated about $147,000 in housing wealth over the last five years alone. But as home sales have moderated, the pace of home price increases is starting to slow.
Price declines are occurring in some areas
About a quarter of housing markets saw home prices decline in the final quarter of 2025, NAR’s data shows. “Some areas are experiencing home price declines,” Yun notes. “The declining markets are concentrated primarily in Florida and Texas, where robust supply and recent home construction are increasing competition among sellers to attract buyers.”
That said, most home sellers continue to be in a strong equity spot. For example, in places like Austin, Texas, homeowners have accrued about $170,000 in equity over the last five years; in Miami–Fort Lauderdale, Fla., the average homeowner has gained about $300,000 in equity in that time, according to NAR’s Market Statistics Dashboard.
Housing affordability improves in the fourth quarter
As home prices moderate, home buyers may start to take notice: Housing affordability is improving. “Mortgage rates fell, income growth outpaced home price growth and the income required to buy a typical home declined,” Yun notes.
The monthly mortgage payment on the typical single-family home, with a 20% down payment, was $2,057 in the fourth quarter of 2025, according to NAR data. That is down 5.7% from the third quarter and a 3.1% decrease from a year ago.
What’s more, the typical family spent an average of 22.9% of their income on their mortgage payment during the fourth quarter, down from a 24.7% share a year ago – falling further from the 25%–30% threshold most financial experts use to measure housing affordability.
Where home prices continue to soar
NAR’s latest quarterly report shows the following 10 metros posted the largest year-over-year median home price increases in the fourth quarter of 2025:
- Mobile, Ala.: +13.7% annually
- Canton-Massillon, Ohio: +9.8%
- Nassau County-Suffolk County, N.Y.: +9.6%
- Montgomery, Ala.: +9.4%
- St. Louis, Mo.-Ill.: +9.1%
- Shreveport-Bossier City, La.: +8.4%
- Youngstown-Warren-Boardman, Ohio-Pa.: +8.3%
- Providence-Warwick, R.I.-Mass.: +8.2%
- Fort Wayne, Ind.: +8%
- Hartford-West Hartford-East Hartford, Conn.: +8%
The most expensive housing markets overall continue to be mostly concentrated in California, led by San Jose where the median single-family home price was a whopping $1.9 million in the fourth quarter of 2025. NAR’s latest quarterly report shows the following metros are commanding the highest home prices in the country:
- San Jose-Sunnyvale-Santa Clara, Calif.: $1.9 million; 0.0% year-over-year in the fourth quarter
- Anaheim-Santa Ana-Irvine, Calif.: $1.4 million; +2.7%
- San Francisco-Oakland-Hayward, Calif.: $1.3 million; -0.8%
- Urban Honolulu, Hawaii: $1.1 million; +3.5%
- San Diego-Carlsbad, Calif.: $994,000; +0.9%
- Salinas, Calif.: $955,500; +1.2%
- Los Angeles-Long Beach-Glendale, Calif.: $939,700; 0.0%
- Oxnard-Thousand Oaks-Ventura, Calif.: $936,700; +1.8%
- San Luis Obispo-Paso Robles, Calif.: $917,100: -1.1%
- Nassau County-Suffolk County, N.Y.: $818,800; +9.6%
© 2026 National Association of Realtors® (NAR)