U.S. Home Prices Rise 1.8% in 2025
Fourth-quarter FHFA data show home values increased year over year, with 41 states posting gains, though growth varied and was softer in parts of Florida.
WASHINGTON — U.S. house prices rose 1.8% between the fourth quarter of 2024 and the fourth quarter of 2025, according to the U.S. Federal Housing House Price Index (FHFA HPI). House prices for the fourth quarter of 2025 rose 0.8% compared to the third quarter of 2025. FHFA's seasonally adjusted monthly index for December rose 0.1% from November.
Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.
House prices rose in 41 states between the fourth quarter of 2024 and the fourth quarter of 2025. The five states with the highest annual appreciation were North Dakota, 6.4%; Delaware, 6.3%; Illinois, 6.1%; Wisconsin, 5.7%; and Michigan, 5.5%. House prices were down in nine states and the District of Columbia. Florida experienced the most significant price decline at 2.7%.
House prices rose in 66 of the 100 largest metropolitan areas over the previous four quarters. The annual price increase was the greatest in Allentown-Bethlehem-Easton, PA-NJ at 8.9%. The metropolitan area that experienced the most significant price decline was Cape Coral-Fort Myers, FL at 9.1%.
Six of the nine census divisions had positive house price changes year-over-year. The East North Central division recorded the strongest appreciation, posting a 5.0% increase from the fourth quarter of 2024 to the fourth quarter of 2025. The Mountain division recorded a 0.2% decline.
About the HPI
The FHFA House Price Index is a strong indicator of the health of conventional home values. It tracks changes in single-family home prices across the country, using sales data from loans backed by Fannie Mae and Freddie Mac. That means it only includes conventional loans that meet conforming loan limits, doesn’t include FHA, VA or other government-insured loans and only focuses on homes that qualify under those conforming caps.
The index measures price changes by looking at the same property over time. In other words, it compares what a house sold for before to what it sold for later. That helps show true appreciation or depreciation. It also does not capture luxury properties above loan limits or many lower-down-payment government loans.
Source: FHFA
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