Home prices across the United States climbed 4.5% from Q4 2023 to Q4 2024, outpacing both GDP growth and inflation. But while the national average points to growth, the story varies drastically by state. Which markets are booming—and which are cooling off?
This guide breaks down the 2025 housing market by state, based on the latest data from the Federal Housing Finance Agency (FHFA).
The Fastest Growing Housing Markets in 2024
Top 5 States by Home Price Growth:
| Rank | State | Price Growth (YoY) |
|---|---|---|
| 1 | Connecticut | 8.32% |
| 2 | New Jersey | 8.32% |
| 3 | Wyoming | 8.25% |
| 4 | Vermont | 8.09% |
| 5 | Rhode Island | 7.64% |
Key Insights:
- Four of the top five states were in the Northeast, driven by low inventory and high-income buyers.
- Wyoming is the outlier, fueled by population growth and scarce housing near areas like Yellowstone National Park.
- Connecticut, New Jersey, and Vermont all showed strong quarterly appreciation and limited post-pandemic housing supply.
The Only State Where Home Prices Fell
Mississippi was the lone state to experience a year-over-year decline, with a 0.15% drop in home prices.
- The state saw flat population growth and a rise in housing inventory, dampening demand.
- This contrasts with the broader trend of tight inventory pushing prices upward nationwide.
National Trends: Housing Market Outpaces Inflation
According to the FHFA’s House Price Index (HPI):
- U.S. home prices rose 4.5% from Q4 2023 to Q4 2024.
- This growth outstripped GDP (2.5%) and inflation (2.9%), signaling continued resilience despite high mortgage rates.
Year-over-Year Growth vs. Economic Indicators
| Metric | 2024 Value |
|---|---|
| Home Price Growth | 4.5% |
| GDP Growth | 2.5% |
| Inflation Rate | 2.9% |
“House prices grew at a slightly higher rate in the fourth quarter after three straight previous quarters of weaker appreciation.”
— Dr. Anju Vajja, Deputy Director, FHFA
Regional Housing Market Breakdown
By Census Division (YoY Price Change):
- Middle Atlantic: +7.1%
- New England: +6.96%
- West South Central (lowest): +2.27%
These figures highlight how Northeastern states continue to outperform most other regions, while states in the South and Pacific Northwest are seeing more modest gains.
Full State-by-State Home Price Changes
Below is a sample of how states performed year-over-year in Q4 2024:
| State | YoY Price Change |
|---|---|
| Illinois | 7.45% |
| New Hampshire | 7.31% |
| New York | 7.14% |
| Maine | 6.89% |
| Wisconsin | 6.88% |
| Florida | 2.15% |
| California | 2.15% |
| Texas | 2.26% |
| Arizona | 1.22% |
| Louisiana | 0.48% |
| Mississippi | -0.15% |
For the full dataset and MSA-level insights, visit FHFA.gov HPI Dashboard.
🏠 What This Means for Buyers & Sellers
- Buyers: In high-growth states like Connecticut and New Jersey, expect higher entry prices but continued appreciation.
- Sellers: Those in slower-growth or declining states may need to price more competitively to attract interest.
- Investors: States with consistent long-term growth like Vermont and New Hampshire offer strong equity upside.
Conclusion
The U.S. housing market showed notable resilience in 2024, with most states seeing price increases despite elevated interest rates. Northeastern states dominated the leaderboard, while Mississippi marked the lone downturn.
Stay informed on real estate trends, as these shifts could influence buying strategies and investment decisions in 2025.
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