NAR: Three Out of Four Metro Areas Posted Home Price Increases in Second Quarter of 2025
WASHINGTON—Seventy-five percent of metro markets (170 out of 228) registered home price gains in the second quarter of 2025, according to the National Association of Realtors' Metropolitan Median Area Prices and Affordability and Housing Affordability Index. This is down from 83% in the first quarter. Five percent of metro areas recorded double-digit price gains in the second quarter, down from 11% in the first quarter of 2025.
The national median single-family existing-home price grew 1.7% year-over-year to $429,400—a record high. In the first quarter, the national median price increased 3.4% year-over-year.
Median Existing Single-Family Home Price by Region
(year-over-year change)
Northeast: $527,200 (+6.1%)
Midwest: $328,800 (+3.5%)
West: $646,100 (+0.6%)
South: $376,300 (No change)
“Home prices have been rising faster in the Midwest, due to affordability, and the Northeast, due to limited inventory,” said NAR Chief Economist Lawrence Yun. “The South region – especially Florida and Texas – is experiencing a price correction due to the increase in new home construction in recent years.”
“Home sales and the homeownership rate are underperforming relative to job growth,” added Yun. “There have been over 7 million net job additions compared to the pre-COVID peak. However, elevated mortgage rates have kept home sales below pre-COVID levels. The homeownership rate has fallen by a full percentage point since early 2023. If interest rates decline, the strongest release of pent-up housing demand is likely to occur in states with significant job growth in recent years, such as Idaho, Utah, the Carolinas, Florida, and Texas.”
10 Large Markets with BiggestYear-Over-Year Median Price Increases
Toledo, OH (10.5%)
Jackson, MS (10.5%)
Nassau County-Suffolk County, NY (9.6%)
New Haven-Milford, CT (9.0%)
Reading, PA (8.3%)
Springfield, MO (8.2%)
Akron, OH (8.1%)
Montgomery, AL (7.9%)
Cleveland-Elyria, OH (7.8%)
Rochester, NY (7.8%)
10 Most Expensive Markets
San Jose-Sunnyvale-Santa Clara, CA ($2,138,000; 6.5%)
Anaheim-Santa Ana-Irvine, CA ($1,431,500; -0.4%)
San Francisco-Oakland-Hayward, CA ($1,426,000; -1.6%)
Urban Honolulu, HI ($1,148,600; 4.3%)
San Diego-Carlsbad, CA ($1,025,000; -2.4%)
Salinas-Monterey, CA ($978,400; -5.5%)
Oxnard-Thousand Oaks-Ventura, CA ($958,100; 3.3%)
San Luis Obispo-Paso Robles, CA ($928,000; 3.7%)
Los Angeles-Long Beach-Glendale, CA ($879,900; 2.9%)
Boulder, CO ($859,500; -3.2%).
Housing Affordability Trends
- 24% of markets experienced declining home price; up from 17% last quarter.
- $2,256: monthly mortgage payment on a typical existing single-family home with a 20% down payment; 6.5% increase quarter-over-quarter and 0.3% decrease year-over-year.
- 25.7%: average share of income typical families spent on mortgage payments, up from 24.4% last quarter and down from 26.9% last year.
First-Time Buyers
- $2,212: the monthly mortgage payment for a typical starter home valued at $365,000 with a 10% down payment; $134 increase from Q1 and $6 decline year-over-year.
- 38.7%: share of income first-time buyers spent on monthly mortgage payments, up from 36.8% in Q1 and down from 40.6% year-over-year
