Housing Price Increase by Year: Housing Inflation in the U.S.

Core numbers that matter:

• Home prices increased by 4.01% in the U.S. over the last year.
• U.S. home prices nearly doubled over the last 10 years, climbing 105%.
• U.S. home prices nearly quadrupled over the last 30 years, rising 290%.
• Home values increased about 2.4 times faster than inflation from 1991 to 2025.
• California home prices have nearly doubled since 2015, increasing by 94% over the last 10 years.
• Florida home prices rose about 2.5 times over the last 10 years, growing 147%.
• Hawaii has the highest average home price in the U.S. at $839,013, making it the most expensive state to buy a house.
• West Virginia is the most affordable state, with an average home price of $155,491, about 5.4 times cheaper than Hawaii.
• Average national housing prices in the U.S. are forecasted to decrease by 0.7% over the next year.
• Statesboro, GA, is projected to see the highest home price growth next year, with a 3.5% increase.
• Houma, LA, is expected to have the steepest price drop, with home values forecasted to fall by 9.4%.

Home prices in the U.S. soared 290% over the last 30 years, outpacing inflation by more than double. Utah’s housing index has exploded by 629% since 1991, while Hawaii remains the most expensive state despite weak long-term growth. This report breaks down decades of house data and uncovers regional shifts, inflation-adjusted trends, and outlier states, giving financial journalists and consumers alike a sharper lens on one of the most dynamic markets in the economy.

Historical home price increase

*Data was sourced from the U.S. Federal Housing Finance Agency (FHFA) House Price Index® datasets, specifically using values from the first quarter (Q1) of each year: https://www.fhfa.gov/data/hpi/datasets?tab=quarterly-data

The average house price increase over the last 30 years

• US housing prices over time have surged by 290% from 1995 to 2025, nearly quadrupling in three decades.

The average house price increase over the last 20 years

• U.S. home prices rose 115% between 2005 and 2025, more than double their level two decades ago.

The average house price increase over the last 10 years

• U.S. home prices climbed 105% between 2015 and 2025, almost double in just ten years.

House price growth YoY

*Data was sourced from the U.S. Federal Housing Finance Agency (FHFA) House Price Index® datasets, specifically using values from the first quarter (Q1) of each year: https://www.fhfa.gov/data/hpi/datasets?tab=quarterly-data

• House prices grew fastest in 2022, surging 18.34 percent year over year.
• The sharpest decline occurred in 2009, when prices dropped 8.60 percent.
• Across three decades, the pattern shows boom-and-bust swings, yet the long-term trajectory remains steadily upward.

The data: house price increases by year

*Data was sourced from the U.S. Federal Housing Finance Agency (FHFA) House Price Index® datasets, specifically using values from the first quarter (Q1) of each year: https://www.fhfa.gov/data/hpi/datasets?tab=quarterly-data

Housing inflation rate

Period (years)	Span	Total price increase*
The last 5 years	2020 → 2025	55%
The last 10 years	2015 → 2025	105.40%
The last 15 years	2010 → 2025	129.90%
The last 20 years	2005 → 2025	114.50%
The last 25 years	2000 → 2025	215%
The last 30 years	1995 → 2025	289.70%

*Data was sourced from the U.S. Federal Housing Finance Agency (FHFA) House Price Index® datasets, specifically using values from the first quarter (Q1) of each year: https://www.fhfa.gov/data/hpi/datasets?tab=quarterly-data. Read the details about calculations in the methodology section.

• Home price inflation reached 55% from 2020 to 2025, reflecting sharp gains in just five years.
• Housing price inflation doubled U.S. home values between 2015 and 2025, rising by 105%.
• House price inflation hit nearly 130% over the 15 years from 2010 to 2025.
• The home price growth rate from 2005 to 2025 totaled 114.5%, more than doubling values.
• Housing growth rate since 2000 reached 215%, showing steep long-term appreciation.
• U.S. home price growth over the last 30 years surged 290% from 1995 to 2025.

Housing inflation chart

*Data was sourced from the U.S. Federal Housing Finance Agency (FHFA) House Price Index® datasets, specifically using values from the first quarter (Q1) of each year: https://www.fhfa.gov/data/hpi/datasets?tab=quarterly-data. Read the details about calculations in the methodology section.

• U.S. home prices gain about 27% every five years.
• U.S. home prices jump roughly 64% each decade.

While the historical figures are important, understanding what they signal for future performance is crucial for both buyers and investors.

What does the HPI growth trend mean?

The pandemic surge crammed two decades of normal growth into five years.

Home prices usually gain about 27% each half-decade, yet they soared 55% from 2020 to 2025. It means buyers who entered just before COVID captured returns that would ordinarily take until 2040. If you’re entering the market now, expect more typical returns; the explosive phase already passed.

Even the deepest crash on record could not derail the long game.

Prices plunged 8.6% in 2009 but still climbed 290% over thirty years, so a dollar of equity in 1995 turned into almost four dollars by 2025. It shows that patience beats market timing. That’s why owning for the long haul almost always wins over trying to time a perfect entry.

The housing market can absorb extreme spikes

Record-high 18.34% growth in 2022 was followed by a quick cool-down to near-trend 4% by 2025, which signals the market can absorb extreme spikes without snapping back into a prolonged slump. Sellers should temper expectations, pricing power is cooling, but still historically solid.

Raw price growth tells only part of the story, so to truly understand housing wealth, we need to factor in inflation.

Inflation-adjusted home prices over the last 30 years

*HPI data was sourced from the U.S. Federal Housing Finance Agency (FHFA) House Price Index® datasets, specifically using values from the first quarter (Q1) of each year: https://www.fhfa.gov/data/hpi/datasets?tab=quarterly-data. CPI data was sourced from Federal Reserve Bank of Minneapolis: https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator/consumer-price-index-1913-

• Adjusted for inflation, U.S. home prices rose 82% since 1991, nearly doubling in real terms.
• The CPI-adjusted index bottomed at 105 in 2012, offering the best buying window in three decades.
• U.S. home prices grew 330% from 1991 to 2025, while CPI rose 137%, so home values increased about 2.4 times faster than inflation.

Table: Inflation-adjusted housing prices by year

To dig deeper, comparing how home values moved relative to inflation each year can reveal when real purchasing power grew or shrank:

CPI-adjusted housing prices YoY change vs. CPI

*HPI data was sourced from the U.S. Federal Housing Finance Agency (FHFA) House Price Index® datasets, specifically using values from the first quarter (Q1) of each year: https://www.fhfa.gov/data/hpi/datasets?tab=quarterly-data. CPI data was sourced from Federal Reserve Bank of Minneapolis: https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator/consumer-price-index-1913-

• Real home prices soared 9.57% in 2022 while CPI jumped 8.01%, a clear sign housing beat inflation at its hottest.
• The sharpest crash came in 2008 when real values sank 9.09% and CPI rose 3.86%, so bubble gains vanished.
• Real price growth cooled from 9.57% in 2022 to 1.24% in 2025, a trend that signals the boom faded fast.

Table with CPI-adjusted housing prices YoY change vs. CPI

2012 marked the cheapest real housing in 30 years

The best real estate deal of a generation happened in 2012, when inflation-adjusted home values hit a 30-year low at just 105, nearly flat since 1991, while CPI had already climbed 69%, meaning homes were the cheapest in real terms since records began. If you’re waiting for the perfect price dip, remember: true bargains only reveal themselves in hindsight. Timing should serve long-term value, not fear.

The post-crash rebound delivered outsized real gains

From 2008 to 2012, homebuyers saw five straight years of negative real growth, yet by 2025, values rebounded 73% after inflation. This proves that buying during downturns compounds far beyond average returns. It shows that buying in the dip may be the only time you beat the cycle.

Housing beat inflation even at its 2022 peak

In 2022, even with CPI at 8%, real home prices still rose faster at 9.57%, meaning housing outpaced inflation even at its peak. This rare signal shows real estate stayed hot when almost everything else lost value. When inflation surges, real estate can still protect capital. But entering late in the spike carries far more risk.

Beyond national trends, price growth varies sharply by region: some states have become growth powerhouses, others lag behind.

Housing price index by state

*HPI data was sourced from the U.S. Federal Housing Finance Agency (FHFA) House Price Index® datasets, specifically using values from the first quarter (Q1) of each year: https://www.fhfa.gov/data/hpi/datasets?tab=quarterly-data.

Table with housing index by state in 2025

• Utah tops the list with an HPI of 729, a 629% jump from the 1991 baseline.
• Connecticut sits at the bottom with an HPI of 305, the slowest long-term appreciation among states.
• Mountain West and Sun Belt states dominate the upper ranks, while many Northeast and Midwest states lag, revealing a sharp regional divide in price growth.

High growth doesn’t always mean high prices, so it’s worth comparing how today’s price levels vary across states.

Average home price by state

*Data reflects median home prices by U.S. states and D.C. as of February 2024, sourced from Zillow.

Table with average home price by state:

• A clear coastal-to-heartland divide emerges, with pricey Pacific and Atlantic states clustering at the top while interior and Southern states anchor the budget end.
• Utah moved from the bargain bin to the luxury shelf: it logged the nation’s steepest three-decade surge (HPI ≈ 729) and now commands an average price above $500 k, showing a dramatic shift from cheap to expensive.
• Hawaii went the other way in relative terms: it stayed the priciest market (≈ $839 k) but posted one of the softest growth records (HPI ≈ 396), so its lead over other states has narrowed instead of widening.

The most expensive state to buy a house

• Hawaii is the most expensive state to buy a house, with an average home price of $839,013.

Cheapest state to buy a house

• West Virginia is the cheapest state to buy a house, with an average home price of just $155,491, about 5.4 times cheaper than in Hawaii.

Average home price in California

• California’s average home price reached $765,197, making it the second most expensive state in the U.S.
• California’s HPI reached 425.56 in 2025, showing strong long-term home value growth.

House prices in California graph

• California home prices grew by 94% over the last 10 years, nearly doubling since 2015.
• California home prices surged by 393% over the last 30 years, increasing almost 5 times since 1995.

Average home price in Texas

• Texas homes averaged $298,624, reflecting strong demand with more moderate pricing compared to coastal states.
• Texas recorded a 2025 HPI of 448.98, indicating consistent housing appreciation since 1991.

House prices in Texas graph

• Texas home prices grew by 98% over the last 10 years, nearly doubling since 2015.
• Texas home prices rose by 308% over the last 30 years, increasing more than 4 times since 1995.

Average home price in Florida

• Florida’s average home price stood at $392,306, ranking among the highest in the Southeast.
• Florida’s 2025 HPI hit 554.93, placing it among the top growth states in long-term price gains.

House prices in Florida graph

• Florida home prices grew by 147% over the last 10 years, rising about 2.5x since 2015.
• Florida home prices jumped 414% over the last 30 years, climbing roughly five times since 1995.

Zooming out, regional dynamics offer strategic insights for both investors and movers looking for growth and value:

Mountain West delivers high growth at mid-tier prices

Utah, Montana, and Colorado sit atop the growth chart yet remain far cheaper than coastal giants, so investors who want big appreciation without million-dollar buy-ins are now following the Mountain West playbook. Buyers aiming for both affordability and upside should prioritize inland states like Utah and Montana before prices fully catch up to their growth.

Hawaii’s sky-high prices masked underwhelming growth

Hawaii still commands the nation’s highest price but shows one of the weakest long-term gains, signaling that prestige alone no longer guarantees strong upside for late buyers. If you’re entering now, focus less on brand-name markets and more on those with proven recent acceleration.

The new real estate power map has shifted inland

The states with the fastest price growth and the states with the highest price levels hardly overlap, proving that today’s momentum has shifted inland while legacy coastal markets live off past gains. Portfolio strategy should follow the growth map, not the price map. Investors should track long-term HPI trends, not just current price levels, to avoid paying a premium for yesterday’s growth.

But what happens next? Forecasts for the coming year help clarify where the market is headed beyond historical data.

House price forecast by region

Top 20 U.S. regions where home prices are expected to rise

Region	1-year price change forecast
Statesboro, GA	3.5%
Atlantic City, NJ	3.4%
Edwards, CO	3.4%
Brevard, NC	3.4%
Price, UT	3.4%
Thomaston, GA	3.3%
Steamboat Springs, CO	3.2%
Cornelia, GA	3.1%
Keene, NH	3.%
Maysville, KY	3.%
Laconia, NH	2.9%
West Plains, MO	2.9%
Clewiston, FL	2.9%
Toccoa, GA	2.9%
Kalispell, MT	2.8%
Kinston, NC	2.8%
Kingston, NY	2.7%
Alamogordo, NM	2.7%
Knoxville, TN	2.6%
Jackson, WY	2.6%

*Data taken from Zillow’s United States Housing Market report. https://www.zillow.com/research/data/

• Statesboro, GA, leads the pack with a 3.5% price gain forecast.
• The twenty projected outperformers average about 3.0% annual growth, a steady clip rather than a rapid boom.
• Georgia towns and Mountain West resort hubs dominate the list, pointing to rising demand in smaller, lifestyle-driven markets.

Top 20 housing markets with forecasted price decrease

Region	1-year price change forecast
Houma, LA	-9.4%
Bogalusa, LA	-9.4%
DeRidder, LA	-9.5%
Alice, TX	-9.6%
Beeville, TX	-9.6%
Johnstown, PA	-10.%
Hobbs, NM	-10.%
Indianola, MS	-10.1%
Helena, AR	-10.2%
Natchez, MS	-10.3%
Zapata, TX	-10.3%
Big Spring, TX	-10.5%
Morgan City, LA	-10.6%
Opelousas, LA	-11.6%
Raymondville, TX	-12.1%
Bennettsville, SC	-12.9%
Cleveland, MS	-13.4%
Clarksdale, MS	-13.6%
Pecos, TX	-14.2%
Greenville, MS	-15.%

*Data taken from Zillow’s United States Housing Market report. https://www.zillow.com/research/data/

• Greenville, MS, faces the steepest projected decline, with prices expected to fall 15% in one year.
• The average drop among the bottom 20 markets is nearly 11%, signaling a sharp retreat in local housing demand.
• Mississippi, Texas, and Louisiana dominate the list, showing regional distress in the Deep South and energy-reliant towns.

20 housing markets with no significant price change expected

Region	1-year price change forecast
Bemidji, MN	0.1%
Hutchinson, MN	0.1%
Jesup, GA	0.1%
Cincinnati, OH	0%
Port St. Lucie, FL	0%
Flint, MI	0%
Evansville, IN	0%
Macon, GA	0%
Bowling Green, KY	0%
Muskegon, MI	0%
Hanford, CA	0%
Albany, GA	0%
Owensboro, KY	0%
Plattsburgh, NY	0%
Tiffin, OH	0%
Bartlesville, OK	0%
Ca-¦on City, CO	0%
Laramie, WY	0%
Vidalia, GA	0%
Greensburg, IN	0%

*Data taken from Zillow’s United States Housing Market report. https://www.zillow.com/research/data/

• Many flat-growth regions are in the Midwest and South, including Michigan, Ohio, Indiana, Kentucky, and Georgia. These areas may offer stability for buyers looking to avoid volatility.

What the housing prices statistics really tell us:

1. Real estate handily beat inflation, especially for 2012 buyers

Residential property has beaten inflation by 2.4 × since 1991, and buyers who entered at the 2012 real-price trough have already booked a 73% inflation-adjusted return, proving well-timed downturn purchases can amplify real-estate wealth.

2. Inland states quietly outpaced coastal giants

The growth map has flipped inland: Utah, Montana, and Colorado now generate the nation’s largest three-decade price surges while still costing a fraction of coastal markets, signaling a lasting wealth shift toward the Mountain West.

3. Pandemic-era boom compressed 20 years of growth into just 5

Pandemic buying delivered an unprecedented windfall: home values rose 55% from 2020 to 2025, compressing two decades of typical gains into five years and setting a new, faster baseline for future cycles.

Methodology:

We calculated total home inflation by comparing FHFA’s seasonally adjusted Purchase-Only House Price Index values between 2025 and each target year (e.g., 2020, 2015, etc.). The percentage reflects cumulative price growth over each selected period, not annual averages.

We used seasonally adjusted values from the FHFA Purchase-Only House Price Index. For each consecutive five-year window (1995-2000, 2000-2005, and so on) and each consecutive ten-year window (1995-2005, 2005-2015, 2015-2025), we applied the compound annual growth rate formula: CAGR = ((ending index / starting index)^(1 / years)) − 1. We then averaged the six five-year CAGRs and the three ten-year CAGRs to get typical annual rates and converted those into total percentage gains.

Sources:

• Economist, Simon. “Consumer Price Index, 1913- | Federal Reserve Bank of Minneapolis.” Federal Reserve Bank of Minneapolis: Pursuing an Economy That Works for All of Us., 15 May 2025, https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator/consumer-price-index-1913-.
• “FHFA House Price Index® Datasets | FHFA.” FHFA.Gov, https://www.fhfa.gov/data/hpi/datasets. Accessed 30 June 2025.
• https://www.zillow.com/research/data/. Accessed 30 June 2025.