U.S. Home Price Appreciation Ticks Up Quarterly, Annually

March 13, 2026

The U.S. Federal Housing (FHFA) House Price Index (FHFA HPI) shows that between Q4 of 2024 and Q4 of 2025, U.S. home prices increased by 1.8%. In comparison to Q3 of 2025, home prices increased by 0.8% in Q4 of 2025. The seasonally adjusted monthly index for FHFA increased by just 0.1% in December compared to November.

Key FHFA HPI Data — December 2025/Q4 2025:

Monthly Change (Dec 2025): +0.1% (seasonally adjusted)
Quarterly Change (Q4 2025): +0.8% over Q3 2025
Annual Change (Year-over-year Q4 2025): +1.8%
Record High Index Value: 440.4 (Purchase-Only Index)

While total annual increase was 1.8%, regional statistics in 2025 showed uneven performance, with some places seeing price reductions and others continuing to grow. In contrast to the national average, the Mountain division had noticeable volatility in late 2025.

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Since the beginning of 2012, the U.S. housing market has shown positive yearly appreciation every quarter. Between Q4 of 2024 and Q4 of 2025, home prices increased in approximately 41 states.

The five states with the highest annual appreciation were:

North Dakota (6.4%)
Delaware (6.3%)
Illinois (6.1%)
Wisconsin (5.7%)
Michigan (5.5%)

Additionally, nine states and the District of Columbia had a decline in home prices. At 2.7%, Florida saw the biggest price drop.

Larger Metros See Biggest Annual Price Growth

Some 66 of the 100 biggest cities saw increases in home prices during the preceding four quarters. At 8.9%, Allentown-Bethlehem-Easton, PA-NJ had the biggest annual price rise. At 9.1%, Cape Coral-Fort Myers, FL, was the metropolitan area with the biggest price drop.

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The year-over-year changes in house prices were positive in six of the nine census divisions. With a 5.0% gain between Q4 of 2024 and Q4 of 2025, the East North Central division showed the most appreciation. There was a 0.2% decrease in the Mountain division.

The FHFA will release the next monthly HPI report (including data through January 2026) on March 31, 2026, and the next quarterly report (including data for the first quarter of 2026 and monthly data for March 2026) on May 26, 2026.

Note: All statistics in this report reflect seasonally adjusted index values.

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Demetria C. Lester

Demetria C. Lester is a reporter for MortgagePoint (formerly DS News and MReport) with more than 10 years of writing and editing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News and the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Lester is a jazz aficionado, Harry Potter fanatic, and avid record collector. She can be reached at demetria.lester@thefivestar.com.