FHFA data showed modest 2025 gains and sharper regional splits
United States home price growth stayed positive but subdued in 2025, leaving originators navigating a market where values inched higher while affordability pressures persisted.
According to the Federal Housing Finance Agency, US house prices rose 1.8% between the fourth quarter of 2024 and the fourth quarter of 2025.
House prices for the fourth quarter of 2025 rose 0.8% compared to the third quarter of 2025, while FHFA’s seasonally adjusted monthly index for December increased 0.1% from November.
FHFA noted that “nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.”
House prices rose in 41 states over the year, with North Dakota (6.4%), Delaware (6.3%), Illinois (6.1%), Wisconsin (5.7%), and Michigan (5.5%) leading gains, while Florida experienced the most significant price decline at 2.7%.
Regional shifts and local stress points
FHFA data showed house prices rose in 66 of the 100 largest metropolitan areas over the past four quarters, with Allentown-Bethlehem-Easton, PA-NJ posting 8.9% annual growth and Cape Coral-Fort Myers, FL recording a 9.1% decline.
Six of nine census divisions saw year-over-year increases, led by the East North Central division’s 5% increase, while the Mountain division recorded a 0.2% decline.
Separate National Association of Realtors figures pointed to a similar pattern, with home prices rising in 73% of metro markets in the fourth quarter and the national median single-family existing-home price up 1.2% year over year to $414,900.
“While most metro markets continue to see record-high housing wealth, some areas are experiencing home price declines,” NAR chief economist Lawrence Yun said, adding that those markets were “concentrated primarily in Florida and Texas.”
Slower momentum, tight supply
FHFA said US single-family house price gains slowed in December, even as tight inventory continued to support values and limit the prospect of a broad national decline.
Economists cited supply shortages, especially for entry-level homes, as a key force keeping prices elevated and sidelining would-be first-time buyers.
Earlier commentary pointed to the Trump administration’s trade and immigration policies as factors that raised costs for building materials and appliances and curbed labor supply, constraining builders’ capacity to add stock.
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