U.S. home costs continued to rise within the first quarter of 2026, however appreciation slowed markedly from the speedy tempo seen through the pandemic-era housing growth. Larger mortgage charges, persistent affordability challenges, and softer demand weighed on worth progress nationally. On the identical time, native market situations assorted significantly. Some states and metropolitan areas continued to submit strong good points, whereas others skilled flat or declining home costs.
In accordance with the quarterly purchase-only Home Value 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 progress charge represented the slowest annual appreciation for the reason that second quarter of 2012, signaling the continued cooling of home worth progress after greater than a decade of sturdy good points. 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 worth modifications utilizing greater than six million repeat-sales transactions involving the identical single-family properties. Along with the nationwide image, the index offers worthwhile perception into home worth developments throughout states and metropolitan areas.
On the state stage, home worth efficiency remained optimistic throughout many 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. Most of the markets that skilled a number of the strongest worth progress throughout 2021–2022 proceed to face affordability pressures and softer purchaser demand.
General, 42 states and Puerto Rico reported annual home worth good points. 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 worth efficiency assorted much more broadly throughout metropolitan areas than on the state stage. Among the many nation’s 100 largest metro areas tracked by FHFA, annual home worth 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 had been concentrated primarily within the Midwest and Northeast, the place restricted housing provide continued to assist worth progress. A number of metro areas in Pennsylvania, New York, Ohio, and Illinois posted particularly sturdy annual good points, reflecting continued demand amid restricted provide.
In distinction, a number of the weakest-performing markets had been positioned in Florida, Texas, and components of the Mountain West. Austin-Spherical Rock-San Marcos, Texas, recorded the steepest annual worth decline among the many high 100 metro areas, persevering with a correction after a number of years of exceptionally speedy home worth progress. Cape Coral–Fort Myers, Florida, additionally remained among the many nation’s weakest housing markets, extending a development of worth declines amid cooling demand and a gradual rebalancing of market situations.
General, one-third of the 100 largest metro areas posted annual worth declines within the first quarter of 2026, whereas the remaining two-thirds recorded both optimistic appreciation or basically flat worth progress.
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- Except in any other case famous, this weblog submit makes use of the quarterly purchase-only Home Value Index (HPI), which measures the gross sales costs of houses which might be purchased and bought, fairly than the broader all-transactions HPI. The acquisition-only HPI offers a extra exact view of present market situations.