U.S. House Prices Rise 2.9% Amid Regional Variations

Strategic Insights -

The U.S. housing market continues to experience positive growth, with house prices rising 2.9% between the second quarter of 2024 and the second quarter of 2025, according to the FHFA House Price Index. Despite some regional variations, the majority of states saw an increase in house prices, with the top five states experiencing the highest annual appreciation being New York, Connecticut, New Jersey, Mississippi, and Illinois. Meanwhile, the District of Columbia saw a significant price decline of 7.6%.

Key Takeaways:

  • Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.
  • House prices rose in 46 states between the second quarter of 2024 and the second quarter of 2025.
  • The five states with the highest annual appreciation were:

+ New York, 8.0%

+ Connecticut, 7.8%

+ New Jersey, 7.5%

+ Mississippi, 7.3%

+ Illinois, 6.7%

  • House prices were down in four states and District of Columbia, with the District of Columbia experiencing the most significant price decline at 7.6%.
  • The metropolitan area that experienced the most significant price decline was North Port-Bradenton-Sarasota, FL, at 11.2%.
  • All nine census divisions had positive house price changes year-over-year, with the Middle Atlantic division recording the strongest appreciation at 6.7%.
  • The FHFA HPI is a comprehensive collection of publicly available house price indexes that measure changes in single-family home values based on data that extend back to the mid-1970s from all 50 states and over 400 American cities.

Statistics:

  • National house price appreciation: 2.9%
  • House price percent change from Q2 2024 to Q2 2025 for top 5 states:

+ New York: 8.0%

+ Connecticut: 7.8%

+ New Jersey: 7.5%

+ Mississippi: 7.3%

+ Illinois: 6.7%

  • House price decline in District of Columbia: 7.6%
  • Four-quarter appreciation in metropolitan areas:

+ Rochester, NY: 10.3%

+ North Port-Bradenton-Sarasota, FL: -11.2%

  • Census divisions' house price changes:

+ Middle Atlantic division: 6.7%

+ Pacific division: 0.9%

  • Years since the start of 2012 with positive annual appreciation: 11

Sources:

  • FHFA House Price Index (FHFA HPI)
  • The Federal Housing Finance Agency (FHFA)
  • Fannie Mae
  • Freddie Mac
  • Federal Home Loan Banks