U.S. Home Prices Start 2026 with Subdued Growth, First American Data Shows
Event summary
- First American Data & Analytics reported a 0.2% month-over-month decline in national home prices in January 2026, with year-over-year growth at just 0.4%.
- Annual house price appreciation has remained below 1% for six consecutive months.
- Twenty-three of the top 30 markets posted annual price declines, with Western markets like Oakland, Denver, and Seattle seeing the largest drops.
- Midwestern and Northeastern markets, such as Warren, Mich., Cambridge, Mass., and St. Louis, reported the strongest gains.
- The report segments home price changes into starter, mid, and luxury tiers at the metropolitan level.
The big picture
The subdued start to 2026 for U.S. home prices reflects a broader shift from rapid price acceleration to a more stable market. This trend is significant for buyers, as it gradually improves affordability. The uneven performance across different regions highlights the importance of local supply and demand dynamics in dictating market outcomes. First American Data & Analytics, a division of First American Financial Corporation, provides critical insights into these trends through its comprehensive property-centric data and analytics.
What we're watching
- Regional Disparities
- How the divergence between declining Western markets and appreciating Midwestern and Northeastern markets will evolve.
- Affordability Trends
- Whether slower price growth combined with rising household incomes will continue to improve housing affordability.
- Market Stability
- The pace at which the market transitions from rapid price acceleration to a period of relative price stability.
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