U.S. home-price growth accelerated modestly in June, led by inventory-constrained markets in the Midwest and Northeast. The gains offset slower conditions across much of the South and West, where rising supply, affordability pressures and increased buyer leverage are reshaping the housing landscape. Cotality expects prices to continue rising, but at a measured pace.
Key takeaways
- The national median home price reached $427,400 in June.
- Annual price growth accelerated to 1.2%, up from 0.8% in May.
- Midwest and Northeast markets led the gains, while the South and West remained softer.
- Cotality projects a further 1.5% increase in prices by June 2027.
June’s results point to a housing market that is rebalancing unevenly. Regional differences are becoming more significant as local inventory, affordability and buyer demand influence prices in different ways.
Regional divergence shapes the market
Midwestern and Northeastern markets continued to record stronger price performance, supported by relatively limited housing inventory. Although more homes are beginning to come onto the market, supply remains constrained enough to support continued appreciation in many areas.
By contrast, parts of the South and West are experiencing a faster buildup of listings. Greater supply has given buyers more negotiating power and slowed price growth, while also helping stabilize declines in some markets that weakened over the past year.
National growth remains positive but restrained
The $427,400 national median price represented a year-over-year increase of 1.2% in June. That marked an improvement from May’s 0.8% gain and suggests that the market retained momentum through the spring and early summer despite elevated mortgage rates.
Affordability remains a major consideration. A household would need an annual income of about $95,000 to afford a home at the national median price, underscoring the financial challenge facing many prospective buyers.
Economic pressures could weaken momentum
Cotality Chief Economist Selma Hepp said the market’s recent strength may not persist as inflation concerns, labor-market weakness and high borrowing costs weigh on demand. Those factors could make buyers more cautious in the months ahead, particularly in markets where prices remain elevated relative to incomes.
The outlook is not uniformly negative. Cotality forecasts that national home prices will rise another 1.5% between June 2026 and June 2027. However, the pace and direction of that growth are likely to depend heavily on local inventory conditions and the balance between buyer demand and available homes.