U.S. home costs continued to rise within the first quarter of 2026, however appreciation slowed markedly from the fast tempo seen through the pandemic-era housing increase. Increased mortgage charges, persistent affordability challenges, and softer demand weighed on value development nationally. On the identical time, native market situations assorted significantly. Some states and metropolitan areas continued to publish stable positive aspects, whereas others skilled flat or declining home costs.
In response to the quarterly purchase-only Home Worth Index1 (HPI) launched by the Federal Housing Finance Company (FHFA), nationwide home costs rose 1.7% within the first quarter of 2026 from a 12 months earlier. This development charge represented the slowest annual appreciation because the second quarter of 2012, signaling the continued cooling of home value development after greater than a decade of sturdy positive aspects. On a quarterly foundation, home costs elevated a modest 0.5% from the fourth quarter of 2025.
The FHFA’s purchase-only HPI tracks common value modifications utilizing greater than six million repeat-sales transactions involving the identical single-family properties. Along with the nationwide image, the index offers helpful perception into home value developments throughout states and metropolitan areas.
On the state degree, home value efficiency remained optimistic throughout a lot of the nation within the first quarter of 2026, though appreciation charges assorted broadly. Annual appreciation ranged from a 2.4% decline to a 16.3% achieve.
Puerto Rico recorded the strongest annual appreciation, with home costs surging 16.3% from a 12 months earlier. Among the many 50 states and the District of Columbia, Illinois posted the biggest achieve (7.3%), adopted by Alaska (5.5%), Vermont (4.9%), and Connecticut (4.7%). Extra broadly, many states throughout the Midwest and Northeast continued to outperform the nationwide common.
On the different finish of the spectrum, Colorado recorded the biggest annual decline, with home costs falling 2.4% from a 12 months earlier. Texas and the District of Columbia additionally posted modest declines, whereas a number of Western and Solar Belt states noticed solely restricted appreciation. Lots of the markets that skilled a few of the strongest value development throughout 2021–2022 proceed to face affordability pressures and softer purchaser demand.
General, 42 states and Puerto Rico reported annual home value positive aspects. As well as, 31 states and Puerto Rico matched or exceeded the nationwide appreciation charge of 1.7%, underscoring the resilience of many regional housing markets regardless of difficult financing situations.
Home value efficiency assorted much more broadly throughout metropolitan areas than on the state degree. Among the many nation’s 100 largest metro areas tracked by FHFA, annual home value appreciation ranged from a decline of 6.9% to a rise of 10.8% within the first quarter of 2026.
The strongest-performing metro areas have been concentrated primarily within the Midwest and Northeast, the place restricted housing provide continued to help value development. A number of metro areas in Pennsylvania, New York, Ohio, and Illinois posted particularly sturdy annual positive aspects, reflecting continued demand amid restricted provide.
In distinction, a few of the weakest-performing markets have been situated in Florida, Texas, and elements of the Mountain West. Austin-Spherical Rock-San Marcos, Texas, recorded the steepest annual value decline among the many high 100 metro areas, persevering with a correction after a number of years of exceptionally fast home value development. Cape Coral–Fort Myers, Florida, additionally remained among the many nation’s weakest housing markets, extending a development of value declines amid cooling demand and a gradual rebalancing of market situations.
General, one-third of the 100 largest metro areas posted annual value declines within the first quarter of 2026, whereas the remaining two-thirds recorded both optimistic appreciation or primarily flat value development.
Notice:
- Except in any other case famous, this weblog publish makes use of the quarterly purchase-only Home Worth Index (HPI), which measures the gross sales costs of properties which might be purchased and offered, somewhat than the broader all-transactions HPI. The acquisition-only HPI offers a extra exact view of present market situations.
