Overview
- Year-over-year price growth continues its downward trend, only rising 1.1% in October 2025.
- Price declines expanded from six of the 100 largest metros in January to 32 by October, marking the broadest softening of prices since the early 2010s.
- Metropolitan areas that saw the largest slowdown in home price growth over the past year include Miami and St. Petersburg, FL; Rochester, NY; Las Vegas, NV; Seattle, WA; and Dallas, TX — all down six percentage points or more.
National home price growth
October 2025 data
Source: Cotality
Affordability meter
Source: Cotality
Insights from Chief Economist Dr. Selma Hepp
As 2025 draws to a close, we reflect on a year defined by moderation and shifting dynamics in the housing market.
This year began with a stable growth trajectory, with national price growth posting an annual increase of 3.4% in January. However, that momentum slowed steadily as the year progressed. By October, annual appreciation was a mere 1.1% annual increase—the lowest rate since early 2012.
"The housing market in 2025 demonstrated remarkable resilience despite significant headwinds. Slowing price growth reflects a much-needed rebalancing after years of unsustainable gains. While some markets are experiencing declines, these adjustments will help restore affordability over time and make housing more accessible to a wider group of buyers,” said Cotality’s Chief Economist Dr. Selma Hepp.
This deceleration highlights the impact of higher mortgage rates earlier in the year and persistent affordability challenges. Furthermore, price growth was dampened by a notable increase in inventory. Many markets saw a surge in both existing and newly built homes, slowing rates of in-migration and weakened demand.
The robust price increases of 2022 when top metros — primarily in Florida and the Southeast — saw gains exceeding 30% has now given way to declines. At the start of 2025, only six metros — primarily in Florida — posted year-over-year drops. By October, that number surged to 32, as pricing downturns extended into Texas, California, and various states throughout the Mountain West.
Even areas that did see appreciating price growth recorded muted gains. Appreciation trends among the top 100 metros varied widely. Rochester, New York led in January with a 9% annual increase, but by October, Bridgeport, Connecticut took the top spot with an 8% gain.
“Looking ahead, regional differences will remain pronounced, with demand favoring areas that offer both economic opportunity and relative affordability. In general, home price growth is projected to remain below the long-running average of 4% to 5%. However, mortgage rates will play a critical role in shaping the 2026 housing market. A notable drop in mortgage rates combined with low supply could lead to a re-acceleration of price gains."
-Dr. Selma Hepp
Cotality’s Chief Economist
Top 10 hottest markets
Source: Cotality
Top 10 coolest markets
Source: Cotality
Which areas are affordable?
Tracking the top 5 highest and lowest U.S. median sales prices
Source: Cotality Listing Trends data
Markets to watch
Tracking markets with a very high risk of price decline in the top 100 CBSAs
Source: Cotality
High-risk market home price trends
Source: Cotality
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