Home prices rise in August but fall behind inflation, reports show
Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices (S&P DJI), said even with the gains, home prices are still trailing inflation.
“US home prices declined in real terms for the 15th consecutive month in August 2026, though the gap narrowed as nominal home price growth strengthened,” Kaufman said.
National gains trail inflation
Inflation of 3.4% in August ran about 1.3 percentage points above the 2.1% home price gain, S&P DJI said. The Case-Shiller 10-City Composite rose 3.6% from a year earlier, up from 3.4% in July, and the 20-City Composite rose 2.7%, up from 2.5%.
Seasonal patterns pulled down the Case-Shiller monthly readings. Before adjustment, the national index fell 0.2% in August, and the 10-City and 20-City composites each fell 0.4%, but after adjustment they rose 0.3%, 0.4% and 0.3%, respectively.
“The divergence suggests that the typical post-summer slowdown is obscuring some underlying strength in home prices,” Kaufman said. “Affordability, however, remains challenging. With inflation at 3.4%, Brent crude near $100 per barrel and mortgage rates in the mid-to-high 6% range, households continue to face elevated costs alongside persistently high home prices.”
