House Price Appreciation by State and Metro Area: Second Quarter 2025
The growth of home prices continued the trend of slowing throughout the second quarter of 2025 thanks to economic uncertainty. High mortgage interest rates and a surplus of inventory continue to have an effect on the market’s house price appreciation rate overall.
Data from the House Price Index (HPI) by the Federal Housing Finance Agency (FHFA) shows home prices grew nationally by 3.8%. Comparing that with the second quarter of 2024, this increase is the smallest year-over-year since 2013.
While all 50 states saw at least some home price appreciation, many of the major metropolitan areas saw a decrease in price growth. New York and Connecticut had the highest price appreciation at 7.5% while Colorado recorded the lowest at 0.9% for the state. House price appreciation had more variance by metro area, but all 50 states had positive year-over-year appreciation minus the District of Columbia.
