Housing Market Continues to See Moderate Price Growth

Home price growth remains weak, according to a recent report from property data provider Cotality. As of July 2025, year-over-year price growth was at just 1.4%, which is just half the rate of inflation. Between June and July of this year, prices were down by 0.2%, but by July 2026, home prices are projected to grow another 3.9%.

Not every state saw prices stagnate in the same way. South Dakota saw the most home price growth at 6.2%, while Florida is expected to see price-growth slow. The report shows that the top five markets most at risk of price declines are all located in Florida, including Cape Coral, North Port, Lakeland, St. Petersburg, and West Palm Beach.

“July’s decline in home prices is atypical — the last two periods where we saw monthly declines in July was in 2022 and during 2006-2008 period — but this year’s decline follows a year of relatively flat home prices and persistent weakness in homebuying demand,” Cotality’s Chief Economist Dr. Selma Hepp explained. “And even though price weakness has spread across more markets, 50% continue to see prices increase. The markets where prices are increasing tend to be more affordable markets in Midwest, such as the Chicago metro; Indianapolis; Cleveland; Tulsa OK; and Louisville, KY; as well as Philadelphia and the New York metro. At the same time, Florida markets and those in the West continue to see persistent price declines.”