US Home Price Growth Slows to Weakest Since 2023

The S&P Cotality Case-Shiller 20-City Home Price Index rose 1.2% year over year in January 2026, down from 1.4% in December and below market expectations of 1.3%. This marked the weakest annual growth since July 2023, underscoring the continued cooling in the US housing market. For the eighth straight month, home price appreciation lagged consumer inflation, pushing real home values slightly lower compared to a year ago. New York led gains with a 4.9% annual increase, followed by Chicago (4.6%) and Cleveland (3.6%), while Tampa saw the largest decline (-2.5%). On a monthly basis, prices dipped 0.1% before seasonal adjustment but ticked up 0.2% after, signaling a market in stabilization mode, neither rebounding nor crashing.

The S&P Cotality Case-Shiller 20-City Home Price Index rose 1.4% year over year in December 2025, matching November’s pace and market expectations. However, annual price growth remains close to its weakest level in more than two years, highlighting continued cooling in the US housing market. Home price gains also trailed consumer inflation, which stood at 2.7% in December. As a result, real home values effectively declined over the past year, with nominal price growth lagging inflation by about 1.3 percentage points. Chicago led major markets for a third straight month with a 5.3% annual gain, followed by New York at 5.1% and Cleveland at 4.0%. In contrast, Tampa posted the steepest decline, down 2.9% and marking its 14th consecutive month of falling annual prices. Other former pandemic boom markets, particularly in the Sun Belt, also recorded notable declines, led by Phoenix (-1.5%), Dallas (-1.5%), and Miami (-1.5%).

The Case-Shiller 20-City Home Price Index rose 1.4% year over year in November 2025, slightly above October’s 1.3% gain and market expectations of 1.2%. While marking the first pickup in ten months, growth remains near a more than two-year low, underscoring a slower US housing market. Home price appreciation continued to lag consumer inflation, which eased to 2.7% in November. As a result, real home values effectively declined over the past year, with price growth trailing inflation by roughly 1.3 percentage points. Chicago led major markets for a second straight month with a 5.7% annual gain, followed by New York at 5.0% and Cleveland at 3.4%. In contrast, Tampa posted the steepest decline, down 3.9% and marking its 13th consecutive month of falling annual prices. Other former pandemic boom markets, particularly in the Sun Belt, also recorded notable declines, led by Phoenix (-1.4%), Dallas (-1.4%), and Miami (-1.0%).