U.S. housing market, 1% range increase rate in 2025 hits lowest record

In 2025, U.S. home prices are expected to slow to just over 1%, marking the lowest level in over a decade. According to Standard & Poor’s (S&P) data, as of December 2025, the CoreLogic Case-Shiller Home Price Index increased by only 1.3%, the lowest since 2011. This change is believed to be the result of the post-pandemic housing boom combined with high mortgage rates.

U.S. mortgage rates reached 6.2% at the end of last year, significantly higher than the average over the past decade. During the same period, the Consumer Price Index (CPI) rose by 2.7%, and because inflation outpaced home price growth, real estate values are trending downward. The combination of mortgage rates and inflation has reshaped the housing market landscape in recent years, leading analysts to believe that buyers are increasingly hesitant.

Regionally, home prices in Chicago and New York continue to rise, while prices in Tampa, Denver, and Phoenix have declined. These fluctuations are especially noticeable in popular “sunbelt” areas that experienced significant population inflows after the pandemic.

Goldick, a senior analyst at S&P Global, commented that these structural factors have had a notable impact on the market. The slowdown in the housing market may become more frequent as mortgage rates and the overall economy fluctuate. In the current uncertain economic environment, potential homebuyers are advised to exercise caution.