Softening home price growth
The pace of home value growth finally normalized since the historical highs of 2020 and 2021.
Overall, U.S. home prices rose 1.2% year-over-year in September (while dipping 0.2% month-over-month), according to Cotality. But that ranged by over nine percentage points across the country.
See which states saw the largest and smallest rates of home price growth.
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Since skyrocketing from the extreme demand of rock-bottom mortgage rates in 2020 and 2021, the pace of housing value growth continues to decelerate.
Single-family home prices declined 0.2% monthly and grew 1.2% annually in September, according to Cotality’s Home Price Index (HPI).
“Much like the K-shaped trend seen in overall consumer spending—driven largely by higher income groups—lower-income potential homebuyers are facing challenges due to an uncertain job market, sluggish wage growth, and worsening financial conditions. This is leading to weaker demand for homes and downward pressure on prices,” said Selma Hepp, chief economist at Cotality.
Cotality forecast national prices to grow 0.02% next month and 4.1% by September 2026.
At the state level, Connecticut led the nation with an 6.96% annual gain. New Jersey (5.6%) and Alaska (5.58%) came next, with West Virginia (5.2%) and Wyoming (5.11%) rounding out the top five. Nine states/districts posted annual declines (up from seven in August), with Florida falling furthest (-2.35%). Above that came Washington, D.C. (-1.33%), Texas (-1.16%), Arizona (-0.86%), and Hawaii (-0.79%).
On a month-over-month basis, Wyoming properties saw the biggest boost, rising 1.2%. Behind that came Nebraska (1.16%), Idaho (0.82%), Alaska (0.8%), and Indiana (0.59%). A total of 31 locales experienced monthly drops in September (up from 26 in August), with Vermont’s 1.59% decrease topping the list. Following were D.C. (-1.24%), New York (-0.99%), New Hampshire (-0.9%), and a tie between North Dakota and Texas (-0.66%).
The table below shows every state’s HPI changes for September 2025, according to Cotality:
| State | Month-Over-Month % | Year-Over-Year % | Forecasted Month-Over-Month % | Forecasted Year-Over-Year % |
| ALABAMA | 0.27% | 2.17% | 0.35% | 4.63% |
| ALASKA | 0.80% | 5.58% | 0.38% | 7.75% |
| ARIZONA | -0.28% | -0.86% | -0.08% | 3.00% |
| ARKANSAS | -0.09% | 3.37% | 0.15% | 3.78% |
| CALIFORNIA | -0.19% | -0.20% | -0.14% | 5.29% |
| COLORADO | -0.33% | -0.84% | -0.23% | 3.53% |
| CONNECTICUT | 0.21% | 6.96% | 0.19% | 4.54% |
| DELAWARE | 0.41% | 1.11% | 0.23% | 4.47% |
| DISTRICT OF COLUMBIA | -1.24% | -1.33% | 0.26% | 5.08% |
| FLORIDA | -0.38% | -2.35% | 0.03% | 5.20% |
| GEORGIA | -0.31% | 1.12% | 0.01% | 3.74% |
| HAWAII | -0.13% | -0.79% | 0.22% | 6.58% |
| IDAHO | 0.82% | 1.67% | 0.52% | 5.89% |
| ILLINOIS | -0.13% | 4.80% | -0.04% | 3.50% |
| INDIANA | 0.59% | 3.75% | 0.17% | 2.64% |
| IOWA | 0.40% | 2.52% | 0.25% | 4.57% |
| KANSAS | 0.25% | 4.25% | 0.17% | 3.82% |
| KENTUCKY | 0.35% | 4.06% | 0.25% | 4.25% |
| LOUISIANA | -0.52% | -0.06% | 0.07% | 3.90% |
| MAINE | 0.18% | 3.46% | 0.43% | 4.49% |
| MARYLAND | -0.10% | 1.36% | -0.11% | 3.91% |
| MASSACHUSETTS | 0.18% | 2.95% | 0.04% | 4.41% |
| MICHIGAN | -0.09% | 3.62% | 0.01% | 3.07% |
| MINNESOTA | -0.29% | 2.12% | -0.08% | 3.67% |
| MISSISSIPPI | -0.59% | 1.60% | 0.20% | 4.44% |
| MISSOURI | -0.03% | 3.48% | 0.00% | 3.65% |
| MONTANA | 0.13% | 2.24% | 0.11% | 5.02% |
| NEBRASKA | 1.16% | 3.96% | 0.36% | 3.88% |
| NEVADA | -0.65% | 0.12% | -0.33% | 3.32% |
| NEW HAMPSHIRE | -0.90% | 3.75% | -0.12% | 4.17% |
| NEW JERSEY | 0.50% | 5.60% | -0.02% | 3.09% |
| NEW MEXICO | 0.55% | 1.40% | 0.22% | 4.19% |
| NEW YORK | -0.99% | 2.26% | -0.18% | 4.46% |
| NORTH CAROLINA | -0.23% | 1.27% | 0.12% | 4.31% |
| NORTH DAKOTA | -0.66% | 4.29% | 0.11% | 4.69% |
| OHIO | 0.03% | 3.50% | 0.00% | 2.51% |
| OKLAHOMA | -0.03% | 2.26% | 0.18% | 3.74% |
| OREGON | 0.10% | 0.57% | 0.20% | 6.23% |
| PENNSYLVANIA | 0.58% | 4.40% | 0.14% | 3.30% |
| RHODE ISLAND | 0.15% | 4.36% | 0.07% | 3.29% |
| SOUTH CAROLINA | -0.18% | 2.07% | 0.26% | 4.72% |
| SOUTH DAKOTA | -0.14% | 2.89% | 0.40% | 5.28% |
| TENNESSEE | -0.34% | 1.80% | 0.24% | 4.82% |
| TEXAS | -0.66% | -1.16% | -0.06% | 3.37% |
| UTAH | -0.19% | 1.05% | 0.14% | 4.72% |
| VERMONT | -1.59% | -0.03% | -0.10% | 4.88% |
| VIRGINIA | -0.04% | 2.31% | 0.01% | 3.21% |
| WASHINGTON | -0.17% | 0.83% | -0.04% | 5.49% |
| WEST VIRGINIA | -0.47% | 5.20% | 0.17% | 4.62% |
| WISCONSIN | -0.09% | 4.75% | 0.01% | 3.39% |
| WYOMING | 1.20% | 5.11% | 0.62% | 4.87% |
Advice for home buyers
Whether you’re a buyer or seller, navigating the housing market and its prices can be challenging.
When you’re shopping for property, you should know what to look for, what advice to take, and how to negotiate before putting offers on a house. And you should always see what financial assistance you may qualify for.
If you’re ready to become a homeowner, reach out to a local mortgage lender and get started.
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