U.S. home prices increased 1.4% in the three months ended in May and were up 4.2% compared with May 2024, according to the latest Home Data Index (HDI) Market Report from Clear Capital.
Regionally, prices increased 1.8% in the Northeast, 0.8% in the South, 2.2% in the Midwest, and 1.2% in the West, for the three-month period.
Metros that saw the largest home price gains for the quarter included Rochester, N.Y., where prices were up 6.5% quarter-over-quarter and 10.2% year-over-year; Milwaukee, Waukesha and West Allis, Wisc., where prices were up 4.1% quarter-over-quarter and were up 7.5% from a year earlier; and St. Louis. Mo., where prices were up 3.3% quarterly and 7.5% annually.
Metros where home price growth lost ground included Pittsburgh, Penn., where home prices dropped 1.9% quarter-over-quarter, but gained 4.2% year-over-year; Fresno, Calif., where prices decreased 1.3% compared with the previous quarter but were up 3.6% from a year ago; and Phoenix, Mesa and Scottsdale, Ariz., where home prices dropped 0.2% compared with the previous quarter but were up 1.3% from a year ago.
The report also breaks down the post-COVID era trends that have impacted the housing market, including the recent increase in apartment/multi-family construction and subsequent stabilization in rents resulting from the increased inventory.
As a result this dynamic, the value of multi-family construction spending fell 11.3% over the past year, according to the report.
Also, as a result of the increased multifamily construction, the apartment vacancy rate increased to 7.1% in the first quarter, according to the report, citing Census Bureau data.
Photo: Ian MacDonald