---
title: "US Home Price Growth Slows to Decade Low of 2.1 Percent"
url: https://www.hereaiken.com/2026/08/27/us-home-price-growth-slows/
date: 2026-08-27T05:07:35-04:00
modified: 2026-08-27T05:07:35-04:00
author: "Pearl Hutto"
categories: ["Real Estate"]
site: "HERE Aiken"
attribution: "HERE Aiken"
---

# US Home Price Growth Slows to Decade Low of 2.1 Percent

*Source: [HERE Aiken](https://www.hereaiken.com/2026/08/27/us-home-price-growth-slows/) — August 27, 2026 by Pearl Hutto*

National home prices increased by 2.1 percent in the second quarter of 2026, marking the slowest annual growth rate in at least a decade, according to figures released Tuesday by the Federal Housing Finance Agency. This trend reflects a continued cooling from the double-digit annual gains observed in 2021 and 2022, when prices surged by 17.3 percent and 16.6 percent, respectively.

Quarterly growth also moderated, with prices climbing 0.3 percent from the first quarter of 2026 to the second quarter. The agency also reported that its seasonally adjusted index for June remained flat compared to May.

Across the country, 46 states and the District of Columbia saw price increases over the past year, while four states experienced declines. Alaska led with an 8.3 percent annual gain, followed by Vermont at 7.3 percent, Hawaii at 5.8 percent, and both Illinois and West Virginia at 5.6 percent. New Mexico recorded the steepest decline, with prices falling 1.2 percent from the previous year. Washington, Colorado, and California also saw annual price drops.

Among the 100 largest metropolitan areas, 76 reported price gains over the last four quarters. Elgin, Illinois, registered the largest annual increase at 7.7 percent, while Everett, Washington, experienced the steepest decline at 3.7 percent.

All nine census divisions showed positive annual price changes. The East North Central division, which includes Illinois, Indiana, Michigan, Ohio, and Wisconsin, recorded the strongest annual appreciation at 4.5 percent. The Pacific division posted the weakest growth, just above 0 percent.

For Aiken County residents, the median home sale price was approximately $347,450 as of May 2025, reflecting a 31.2 percent year-over-year increase. While national trends indicate a slowdown, local market conditions can vary. The Federal Housing Finance Agency House Price Index tracks changes in single-family home values using purchase transaction data from Fannie Mae and Freddie Mac, with data extending back to the mid-1970s. The next quarterly report, covering the third quarter of 2026, is scheduled for release on November 24.