Annual price growth dipped to 2.5 percent in March
U.S. home price growth slowed again in March 2025 as consumer anxiety over personal finances, job stability, and trade-related tariffs continued to weigh on an already tepid spring housing market, according to new data from real estate analytics firm Cotality.
Nationwide, annual home price growth declined to 2.5% in March, down from 2.9% in February. Despite the slowdown, the national median home price continued to climb, largely due to robust gains in the Northeast. States like Rhode Island, Connecticut, and New Jersey each saw home prices rise by 7% or more year-over-year.
In contrast, some western states experienced declining prices. Utah and Idaho reported year-over-year price drops of 2.1% and 2.2%, respectively.
Georgia, meanwhile, hit new record-high home prices in March, a trend driven by a continued influx of new residents into the Southeastern U.S. However, neighboring Florida is showing signs of market stress. While the Sunshine State remains the twelfth most expensive in the country–with a median home price of $395,000–it posted a slight statewide price decline of 0.3% last month. Winter Haven, Florida, is now among the five most at-risk housing markets in the U.S., according to Cotality’s Office of the Chief Economist.
“While national home price appreciation continues to moderate as expected, certain markets are showing remarkable resilience,” said Selma Hepp, Chief Economist at Cotality. “This is particularly evident in the Northeast and Midwest, where a persistent lack of inventory is keeping upward pressure on prices, even though median home values remain more affordable–averaging around $230,000.”
Hepp added that rising mortgage rates, increased living costs, and swelling inventories are driving shifts in housing market dynamics. This is especially visible in Florida and Texas, where home prices surged between 70% and 90% since the pandemic, creating significant affordability challenges. Both states joined Hawaii and Washington D.C. in reporting negative monthly price growth in March.
In Florida alone, eight out of 11 major housing markets saw annual price declines last month, underscoring the growing divide between resilient regions and those struggling with economic headwinds and overvaluation.
