U.S. house prices rose 1.8% in the fourth quarter of 2025 compared with the same time in 2024, according to NAHB’s analysis of the House Price Index data released by the Federal Housing Finance Agency. The increase marks the slowest appreciation since the second quarter of 2012, “indicating a cooling in the housing market following more than a decade of robust price growth,” according to the report.
Wide variations between local housing markets emerged due to buyer demand being curbed by elevated mortgage rates, lack of affordability and economic uncertainty.
The FHFA reported 43 states experienced year-over-year price growth from Q4 2024 to Q4 2025. Gains ranged from 0.1% to 6.4%, with North Dakota in the lead. Nine states, however, reported year-over-year decreases, with Florida posting the greatest decline at 2.7%.
Price variations were even more distinct at the metro level. Year-over-year house price appreciation for 100 of the largest U.S. metro areas tracked by FHFA ranged from an 8.9% increase (Allentown-Bethlehem-Easton, Pa., N.J.), to a 9.1% decline (Cape Coral-Fort Myers, Fla.). Many of the 66 metro areas that reported gains were located in the Midwest and Northeast. Of the 34 that reported declines, several were located in the Sun Belt and Mountain West metro areas.
Read the full report here.
