National House Prices Reach New High in Slow Motion, According to First American Data & Analytics Monthly Home Price Index Report

?House prices set a new peak, despite muted annual appreciation, as limited supply continues to provide upward pressure on home values, says Chief Economist Mark Fleming?

SANTA ANA, Calif.--(BUSINESS WIRE)-- First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (FAF) , today released its May 2026 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale transactions into starter, mid and luxury tiers. The full report can be found here.

May¹ National House Price Index

Highlights

• Annual house price appreciation remained below 1 percent for the ninth consecutive month in May.
• House price growth reported in last month?s HPI for March 2026 to April 2026 was revised up by +0.3 percentage point, from +0.2 percent to +0.5 percent.

"National house prices are making history in slow motion," said Mark Fleming, chief economist at First American. "While annual house price growth remains below 1 percent, the price level reached a new historical peak this month. Unlike the pandemic-era housing boom, when double-digit appreciation quickly pushed prices higher, today's record reflects the cumulative effect of small monthly gains rather than rapid price acceleration. Although inventory continues to increase compared with a year ago, the pace of inventory growth nationally has moderated, and supply remains below pre-pandemic norms, limiting both upward and downward pressure on prices."

May 2026 Local Market Price Tier Highlights

The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.

"Housing market divergence is not just a regional story?it's also a story of market segments," said Fleming. "While many local markets continue to navigate affordability challenges, overall, the luxury tier has remained more resilient than the starter and mid-tier segments. Years of house price appreciation and stock market gains have boosted wealth for many higher-income households, while accumulated housing equity has enhanced purchasing power for existing homeowners. Those dynamics have helped sustain demand and price growth at the upper end of the market, even as elevated mortgage rates continue to weigh on other market segments."

May 2026 First American Data & Analytics Price Tier HPI Highlights²

Additional May 2026 First American Data & Analytics HPI Highlights

HPI data for all 50 states and the largest 30 CBSAs by population is available here.

Visit the First American Economic Center for more research on housing market dynamics.

Next Release

The next release of the First American Data & Analytics House Price Index will take place the week of July 20, 2026.

May 2026 First American Data & Analytics House Price Index: Frequently Asked Questions

Q: What did the First American Data & Analytics Home Price Index report for May 2026?
A: The First American Data & Analytics Home Price Index (HPI) found that national house prices increased 0.3 percent from April 2026 to May 2026 and were up 0.7 percent compared with May 2025. Despite modest annual appreciation, the national house price level reached a new historical peak in May 2026.

Q: Why are home prices reaching record highs if annual price growth is near zero?
A: According to First American Chief Economist Mark Fleming, today's record-high home prices are the result of cumulative monthly gains, rather than rapid appreciation. Unlike the pandemic housing boom, when double-digit annual price growth quickly pushed prices higher, current price increases have occurred gradually over time.

Q: What is keeping home prices elevated in 2026?
A: Limited housing supply continues to support upward pressure on home values. Although inventory levels have increased compared with a year ago, the pace of inventory growth has slowed and remains below pre-pandemic levels nationally, helping keep house prices near record highs.

Q: Which housing market segment is performing the strongest?
A: The luxury housing segment has generally shown greater resilience than starter and mid-tier homes. Higher-income households have benefited from stock market gains, accumulated housing equity, and greater financial flexibility, which has helped sustain demand for higher-priced homes, despite elevated mortgage rates.

Q: Which metropolitan areas posted the strongest house price growth in May 2026?
A: Among the metropolitan areas tracked by the First American Data & Analytics HPI, Chicago recorded the strongest annual house price growth at 6.2 percent, followed by Pittsburgh (2.6 percent), Cambridge, Mass. (1.9 percent), New Brunswick, N.J. (1.7 percent), and Anaheim, Calif. (1.6 percent).

Q: Which housing markets saw the largest house price declines in May?
A: Among major metropolitan areas, Denver (-2.5 percent), Orlando, Fla. (-2.2 percent), Las Vegas (-2.1 percent), Tampa, Fla. (-2.0 percent), and Oakland, Calif. (-1.7 percent) recorded year-over-year house price declines in May 2026.

Q: What is the First American Data & Analytics HPI?
A: The First American Data & Analytics HPI measures changes in single-family home prices across the United States using a repeat-sales methodology. It tracks price movements at the national, state, and metropolitan (Core-Based Statistical Area) levels and includes starter, mid-tier, and luxury price segments.

Q: How does First American define starter, mid-tier, and luxury homes?
A: The First American Data & Analytics HPI groups home sales into three tiers based on local market sales prices. Starter-tier homes represent the lower third of the local price distribution, mid-tier homes represent the middle third, and luxury homes represent the upper third.

Q: How current is the First American Data & Analytics HPI data?
A: The HPI tracks home price changes less than four weeks behind real time, making it one of the timeliest measures of U.S. home price trends available.

Q: Who produces the First American Data & Analytics HPI?
A: The HPI is produced by First American Data & Analytics, a division of First American Financial Corporation (FAF) , using more than 46 million paired real estate transactions and the industry?s largest property and ownership dataset.

Q: When will the next HPI report be released?
A: The next First American Data & Analytics Home Price Index report is scheduled for release during the week of July 20, 2026.

First American Data & Analytics HPI Methodology

The First American Data & Analytics HPI report measures single-family home prices, including distressed sales, with indices updated monthly beginning in 1980 through the month of the current report. HPI data is provided at the national, state and CBSA levels and includes preliminary index estimates for the month prior to the report (i.e. the preliminary result of July transactions is reported in August). The most recent index results are subject to revision as data from more transactions become available.

The HPI uses a repeat-sales methodology, which measures price changes for the same property over time using more than 46 million paired transactions to generate the indices. In non-disclosure states, the HPI utilizes a combination of public sales records, MLS sold and active listings, and appraisal data to estimate house prices. This comprehensive approach is particularly effective in areas where there is limited availability of accurate sale prices, such as non-disclosure states. Property type, price and location data are used to create more refined market segment indices. Real Estate-Owned transactions are not included.

Disclaimer

Opinions, estimates, forecasts and other views contained in this page are those of First American?s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American?s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. ? 2026 by First American. Information from this page may be used with proper attribution.

About First American Data & Analytics

First American Data & Analytics, a division of First American Financial Corporation (FAF), is a national provider of property-centric information, risk management and valuation solutions. First American maintains and curates the industry?s largest public records property and ownership dataset that includes more than 8.6 billion document images. Its major platforms and products include: DataTree^? property data, FraudGuard^? risk solution, RegsData^? compliance suite, Procision? AVM, and TaxSource? property tax reporting. Find out more about how First American Data & Analytics powers the real estate, mortgage and title settlement services industries with advanced risk intelligence solutions at www.FirstAmDNA.com.

About First American

First American Financial Corporation (FAF) is a premier provider of title, settlement, and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.5 billion in 2025, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2026, First American was named one of the 100 Best Companies to Work For by Great Place to Work^? and Fortune Magazine for the eleventh consecutive year. More information about the company can be found at www.firstam.com.

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Source: First American Data & Analytics