Which regions saw the biggest jump in home prices?
More than four out of five US metro areas experienced home price gains during the first quarter of 2025, though the pace of appreciation moderated slightly from the prior quarter, according to a new report from the National Association of Realtors (NAR).
Out of 228 measured metropolitan areas, 189 (83%) saw year-over-year price increases for single-family existing homes, down from 89% in the fourth quarter of 2024. The national median price climbed 3.4% to $402,300.
“Most metro markets continue to set new record highs for home prices,” said NAR chief economist Lawrence Yun. He noted that the Northeast outperformed other regions in terms of both sales and price gains, while the South lagged despite strong job growth.
Top markets see double-digit increases
Double-digit price appreciation was recorded in 26 markets (11%), a decline from 14% in the prior quarter. Among large metro areas, Syracuse, New York led with a 17.9% annual increase, followed by Montgomery, Ala. (16.1%) and Youngstown-Warren-Boardman, Ohio-Pa. (13.6%). Six of the top 10 gainers were located in New York and Ohio.
Regionally, the Northeast posted the strongest price growth at 10.3%, followed by the Midwest (5.2%), West (4.1%), and South (1.3%), which also accounted for the largest share of US existing-home sales at 44.9%.
California continued to dominate the list of most expensive markets. The San Jose-Sunnyvale-Santa Clara area topped the list with a median price of $2.02 million, followed by Anaheim-Santa Ana-Irvine ($1.45 million) and San Francisco-Oakland-Hayward ($1.32 million). Urban Honolulu, Hawaii, was the only non-mainland market in the top tier.
Yun attributed the high prices in these markets to prolonged underbuilding and lower homeownership rates, which he said contributed to “more unequal wealth distribution.”
Conversely, nearly 17% of metro areas reported price declines, up from 11% in the previous quarter. Markets such as Boise, Salt Lake City, and San Francisco showed signs of rebounding after earlier drops, while other areas like Austin and Myrtle Beach could recover soon due to ongoing job growth.
Affordability edges up
Housing affordability showed slight improvement. The typical monthly mortgage payment for a single-family home with a 20% down payment was $2,120, up 4.1% from a year earlier but down $2 from the prior quarter. First-time buyers saw a similar modest relief, with payments for a median-priced starter home averaging $2,079.
A family needed a six-figure income to afford a 10% down-payment mortgage in nearly half of all metro areas.
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