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 1.8% year-over-year in May, according to Cotality. But that ranged by almost 10 percentage points around the country.
See which states saw the largest and smallest 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 rose 1.8% annually in May, according to Cotality’s Home Price Index (HPI). That compared to May 2024’s 5% and marked the lowest annual growth rate since 2012. Additionally, prices inched up 0.3% month-over-month.
“While prices were up from a year ago, the rate of gain is slipping as rising ownership costs and increasing inventory is pulling prices down in many markets. The share of markets posting annual decreases in the home price index has steadily increased this year,” said Selma Hepp, chief economist at Cotality. “Concerns about affordability, economic outlook, and elevated mortgage rates are holding buyers back. Similarly, there are now fewer cash buyers in the market indicating that the types of shoppers may be changing.”
Cotality forecast prices to grow 0.8% from May to June and 4.2% by May 2026.
At the state level, Connecticut led the nation with an 8.6% annual gain. Wyoming (7.88%) and New Jersey (7.79%) came next, with Rhode Island (6.68%) and Illinois (6.42%) rounding out the top five. Four states/districts posted annual declines, with Washington, D.C. falling the most (-2.12%). Above that came Florida (-1.26%), Hawaii (-0.72%), Texas (-0.46%), and Colorado (0.03%).
On a month-over-month basis, Indiana properties saw the biggest boost (1.55%). Right behind were Wyoming (1.54%), West Virginia (1.40%), Kansas (1.31%), and Connecticut (1.19%). Seven locales experienced monthly declines in May, with D.C.’s 0.45% drop topping the list. Following were New York (-0.43%), Florida (-0.28%), Alaska (-0.26%), with Colorado, Louisiana, and New Mexico all tied for fifth (-0.01%).
The table below shows every state’s HPI changes for May 2025, according to Cotality:
| State | Month-Over-Month % | Year-Over-Year % | Forecasted Month-Over-Month % | Forecasted Year-Over-Year % |
| ALABAMA | 0.28% | 2.13% | 0.72% | 4.32% |
| ALASKA | -0.26% | 2.45% | 0.83% | 7.33% |
| ARIZONA | 0.13% | 1.15% | 0.51% | 3.56% |
| ARKANSAS | 1.12% | 3.82% | 0.88% | 3.67% |
| CALIFORNIA | 0.17% | 1.12% | 0.51% | 5.76% |
| COLORADO | -0.01% | 0.03% | 0.52% | 4.74% |
| CONNECTICUT | 1.19% | 8.60% | 1.12% | 4.21% |
| DELAWARE | 0.29% | 2.96% | 0.58% | 3.38% |
| DISTRICT OF COLUMBIA | -0.45% | -2.12% | 0.32% | 3.77% |
| FLORIDA | -0.28% | -1.26% | 0.62% | 5.46% |
| GEORGIA | 0.50% | 1.97% | 0.81% | 4.39% |
| HAWAII | 0.26% | -0.72% | 0.81% | 7.29% |
| IDAHO | 0.05% | 1.93% | 0.73% | 5.40% |
| ILLINOIS | 1.06% | 6.42% | 1.12% | 3.74% |
| INDIANA | 1.55% | 4.82% | 1.05% | 2.43% |
| IOWA | 0.75% | 2.36% | 0.97% | 4.25% |
| KANSAS | 1.31% | 3.67% | 0.98% | 3.48% |
| KENTUCKY | 0.44% | 3.88% | 0.78% | 3.82% |
| LOUISIANA | -0.01% | 0.40% | 0.61% | 3.84% |
| MAINE | 0.23% | 2.93% | 0.73% | 3.74% |
| MARYLAND | 0.26% | 3.12% | 0.62% | 3.69% |
| MASSACHUSETTS | 0.38% | 4.34% | 0.90% | 4.04% |
| MICHIGAN | 0.77% | 3.82% | 1.01% | 2.97% |
| MINNESOTA | 0.98% | 2.35% | 1.20% | 4.12% |
| MISSISSIPPI | 0.84% | 2.00% | 0.99% | 4.71% |
| MISSOURI | 1.07% | 3.25% | 1.05% | 3.50% |
| MONTANA | 0.01% | 1.00% | 0.86% | 5.52% |
| NEBRASKA | 0.52% | 2.15% | 0.76% | 3.05% |
| NEVADA | 0.08% | 3.20% | 0.54% | 4.36% |
| NEW HAMPSHIRE | 0.45% | 4.75% | 0.91% | 4.24% |
| NEW JERSEY | 1.14% | 7.79% | 0.99% | 3.08% |
| NEW MEXICO | -0.01% | 1.31% | 0.42% | 4.28% |
| NEW YORK | -0.43% | 1.98% | 0.94% | 4.70% |
| NORTH CAROLINA | 0.43% | 2.39% | 0.75% | 4.40% |
| NORTH DAKOTA | 1.05% | 4.44% | 0.91% | 4.32% |
| OHIO | 0.89% | 4.36% | 0.90% | 2.38% |
| OKLAHOMA | 0.46% | 2.35% | 0.76% | 3.83% |
| OREGON | 0.42% | 0.84% | 0.77% | 6.64% |
| PENNSYLVANIA | 0.79% | 4.41% | 0.85% | 3.31% |
| RHODE ISLAND | 0.21% | 6.68% | 0.89% | 2.87% |
| SOUTH CAROLINA | 0.66% | 3.28% | 0.91% | 4.98% |
| SOUTH DAKOTA | 0.80% | 4.58% | 0.88% | 4.80% |
| TENNESSEE | 0.48% | 2.29% | 0.70% | 4.51% |
| TEXAS | 0.19% | -0.46% | 0.62% | 3.50% |
| UTAH | 0.56% | 0.50% | 0.79% | 5.95% |
| VERMONT | 0.52% | 2.81% | 0.99% | 5.09% |
| VIRGINIA | 0.57% | 3.81% | 0.74% | 2.66% |
| WASHINGTON | 0.11% | 1.79% | 0.57% | 5.67% |
| WEST VIRGINIA | 1.40% | 5.76% | 1.11% | 4.44% |
| WISCONSIN | 0.77% | 5.45% | 0.94% | 3.34% |
| WYOMING | 1.54% | 7.88% | 1.03% | 5.91% |
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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