A new Home Price Index report from ICE Mortgage Technology found annual home price growth ended 2025 with a mild 0.7% uptick, the smallest calendar-year increase since 2011 when prices fell by 2.9%.
The report noted that 2026 is beginning with housing affordability at its best level in nearly four years as income growth outpaces home price gains and the 30-year mortgage rate hovers at 6.15%. At current prices and rates, the purchase of an average-priced home with 20% down and a 30-year loan would require a monthly payment of $2,093, or 27.8% of median household income. One year ago, that payment was $2,256, or 31.1% of median household income.
Regionally, the report found 24 of the 25 fastest-appreciating markets were in the Northeast and Midwest. However, 35 of the 100 largest markets saw home prices decline in 2025, up from 10 in 2024 for the largest share of declines since 2011. Single-family homes saw their prices rise 1.0% compared to a 1.7% decline for condos, which underperformed in 90% of markets nationwide.
“Improved affordability and income growth have provided a much-needed boost to housing market dynamics, even as regional trends and property types show significant variation,” said Andy Walden, head of mortgage and housing market research for Intercontinental Exchange. “The Northeast and Midwest have emerged as clear leaders, while condos continue to face headwinds in most markets.”
Wish you hadn’t said “only” in the headline because most media I see claims it’s going down, when it did not per your article. “Actually grew” would have been better