U.S. home prices grew 2.1 percent over the past year, the slowest annual pace in at least a decade.
The Federal Housing Finance Agency released the figures Tuesday as part of its second-quarter home price index. Quarterly growth also cooled, while prices climbed 0.3 percent from the first quarter of 2026 to the second quarter, and FHFA’s seasonally adjusted index for June held flat compared with May, the agency reported.
The pace continues a slowdown from the double-digit annual gains recorded in 2021 and 2022, when prices rose 17.3 percent and 16.6 percent over the same year-over-year comparison, according to FHFA figures.
Prices rose in 46 states and the District of Columbia over the past year, while four states posted declines, according to FHFA. Alaska led all states with an 8.3 percent annual gain, followed by Vermont at 7.3 percent, Hawaii at 5.8 percent, and Illinois and West Virginia, both at 5.6 percent.
New Mexico posted the steepest decline among states, with prices down 1.2 percent from a year earlier. Washington, Colorado and California also recorded annual price drops, according to the report.
Among the 100 largest metropolitan areas, 76 recorded price gains over the past four quarters, FHFA reported. Elgin, Illinois, posted the largest annual increase at 7.7 percent. Everett, Washington, recorded the steepest decline at 3.7 percent.
All nine census divisions posted positive annual price changes, according to FHFA. The East North Central division, which includes Illinois, Indiana, Michigan, Ohio and Wisconsin, recorded the strongest annual appreciation at 4.5 percent. The Pacific division posted the weakest growth, just above 0 percent.
The FHFA House Price Index (HPI) tracks changes in single-family home values using purchase transaction data from Fannie Mae and Freddie Mac dating to the mid-1970s, according to the agency. FHFA will release its next quarterly report, covering the third quarter of 2026, on Nov. 24.
