According to the S&P CoreLogic Case-Shiller National Home Price NSA Index, the U.S. home price index hit a record high in June 2024. The index, which covers nine U.S. census regions, showed a year-over-year increase of 5.4%, down slightly from 5.9% in the previous month.

Performance of Metropolitan Areas

Among the 20 cities analyzed, New York City performed the best, with an annual increase of 9.0%. It was followed by San Diego and Las Vegas, with annual increases of 8.7% and 8.5%, respectively. In contrast, Portland had the smallest increase of only 0.8%.

The 10-City Composite Index showed an annual increase of 7.4%, while the 20-City Composite Index showed an annual increase of 6.5%, both of which slowed slightly from the previous month.

Monthly Trends

Before seasonal adjustment, the U.S. National Index, the 20-City Composite Index, and the 10-City Composite Index all showed positive growth, up 0.5%, 0.6%, and 0.6%, respectively. However, these figures decelerated from previous months.

The national index rose 0.2% on a seasonally adjusted monthly basis, with the 20-City and 10-City composites performing slightly better, up 0.4% and 0.5%, respectively.

Expert Insights

Brian D. Luke, CFA, Head of Commodities, Real and Digital Assets at S&P Dow Jones Indices, provided insight: "Home prices continue to outpace inflation, exceeding historical averages. The gap between housing costs and the Consumer Price Index is now one percentage point above the 50-year average."

Luke also highlighted the long-term appreciation trend in home prices: "Since 1974, home prices have increased by more than 1,100% unadjusted for inflation. Even accounting for inflation, home prices have increased by 111%."

Affordability Trends

The analysis shows interesting trends in housing affordability across price tiers:

In 75% of markets, lower-priced homes have appreciated faster than the overall market over the past five years.

Lower-priced homes in Atlanta have appreciated 18% faster than mid- and high-priced homes.
The disparity was most pronounced in New York, where lower-priced homes outperformed the overall market by nearly 20%, while higher-priced homes lagged by 5.1%.
San Diego bucked this trend, with higher-priced homes appreciating 79% over five years, while lower-priced homes appreciated just 63%.

These findings highlight the complexity and diversity of housing markets across the U.S., with important implications for affordability and investment strategies in different regions.