The S&P CoreLogic Case-Shiller seasonally adjusted U.S. home price index rose 1.6% year over year in May 2026, compared with the 1.3% increase expected. The prior month’s reading was revised to 1.2% from 1.1%.

On a month-over-month basis, the index increased 0.2%, above the 0.1% expected. The not seasonally adjusted monthly reading rose 0.9%, compared with 1.0% in the previous month.

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With inflation running at 4.2%, home prices are still falling in real, inflation-adjusted terms, underscoring how nominal gains can still leave buyers worse off when borrowing costs and broader prices remain elevated.

Price trends remain uneven across the country. The Northeast and Midwest continue to outperform, while many Western and Sunbelt markets remain weak, highlighting how local supply, demand, and affordability conditions can diverge even within the same national housing cycle.

Chicago posted annual gains for a third straight month, rising 6.9%. New York followed with a 4.2% increase, while Cleveland rose 3.1%.

Las Vegas recorded the largest annual decline at 1.9%. Seattle and Denver each fell 1.8%, while Tampa declined 1.6%.

The relative strength in traditional urban markets may reflect a return-to-office trend supporting demand.

Housing affordability remains a major challenge. Thirty-year mortgage rates averaged 6.5%, well above the ultra-low levels seen in recent years. Elevated borrowing costs and persistent inflation continue to weigh on buyer demand, keeping housing activity subdued and limiting how quickly price trends can reaccelerate.

In a separate housing report, the FHFA index rose 2.2% year over year, up from 2.0% in the previous month. On a monthly basis, it increased 0.3%, after a 0.1% decline in the prior month.