U.S. Home Prices Experience Modest Rise in September
U.S. residential property values experienced a month-over-month increase of 0.25% in September following seasonal adjustment—a marginal rise from the 0.21% recorded in August—as reported by Redfin, a real estate brokerage subsidiary of Rocket. Year-over-year, prices appreciated by 3.8% in September, representing the most substantial annual expansion rate observed since June 2025.
This assessment derives from the Redfin Home Price Index (RHPI), which employs the repeat-sales valuation methodology to determine seasonally adjusted fluctuations in single-family residential property values. The RHPI quantifies the variation in sale prices relative to each property’s preceding transaction. The September figures encompass the three-month period concluding on September 30, 2026.
Notwithstanding buyers possessing enhanced negotiating leverage compared to any point in the preceding decade, property values continue to demonstrate modest monthly appreciation. This phenomenon is attributable, in part, to the substantial equity accumulation among numerous homeowners, who prefer to retain their properties rather than accept insufficient offers, and to certain owners withdrawing listings from the market, thereby establishing a price floor. Furthermore, heightened demand within the premium property segment continues to provide upward pressure on valuations.
Metro-Level Highlights: 2026
Residential property valuations increased across 34 of the nation’s 50 largest metropolitan areas during September on a month-to-month basis. The most substantial appreciation occurred in Pennsylvania municipalities: Philadelphia experienced a 1.9% month-over-month increase when adjusted for seasonal variations, while Pittsburgh recorded a 1.3% increase.
These were succeeded by Miami (1.3%), Chicago (1%), and San Francisco (1%). In metropolitan areas such as Philadelphia, Pittsburgh, and Chicago, purchasers are encountering relatively affordable housing inventory, which has generated elevated demand relative to other regions throughout the U.S. San Francisco’s robust market performance is predominantly attributable to wealth generated through the artificial intelligence sector.
When examining year-over-year performance, San Francisco demonstrated the highest appreciation in September, registering a 14% increase. This was followed by West Palm Beach, Florida (10.4%), Chicago (10.3%), Miami (8.2%), and Philadelphia (7.6%).
The most substantial price reductions occurred in Fort Worth, Texas, which experienced a month-over-month decline of 0.9%, and New Brunswick, NJ, which declined by 0.6%. Following these markets are Dallas, Seattle, WA, and Nassau County, NY, each recording a decline of 0.4%. The downward price movement in these Texas metropolitan areas reflects their status as among the nation’s most favorable buyer’s markets. Seattle similarly functions as a buyer’s market. In these locations, property sellers may be compelled to reduce asking prices to maintain buyer interest.
When examining year-over-year performance, price decreases were observed in only six major metropolitan areas, comprising five Texas markets and Seattle. San Antonio demonstrated the largest annual decline at 2.1%, succeeded by Dallas at 1.5%, Austin, Texas, at 0.2%, Seattle at 0.2%, and Houston at 0.1%.
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