Home Prices Climb 2.5% in New York-Jersey City-White Plains Despite National Slowdown

Is the housing market finally cooling off? Are home prices still rising anywhere in the U.S.? And what does that mean for buyers and sellers in metro areas like New York, Jersey City, and White Plains?

Most of the country is experiencing a slowdown, while the New York-Jersey City-White Plains metro area is seeing modest but steady recovery. According to various monthly reports from First American Data & Analytics, home prices grew 2.5% in March and 2.8% in February—it’s perhaps the most surprising statistic in a slowing market.

Let’s delve into the factors contributing to this growth—and what it could mean for the coming months.

2. February 2025 Data Summary

According to a BusinessWire February report, the housing market in the New York-Jersey City-White Plains metro area has shown moderate growth despite the broader national slowdown. Here’s a breakdown of the data for February 2025:

• Year-over-year increase: Home prices rose by 2.8% from February 2024 to February 2025. This steady growth indicates that the area continues to see demand, even as home prices across the U.S. slow down.
• Month-over-month change: From January 2025 to February 2025, home prices dipped by 1.0%. This short-term decline suggests a temporary slowdown or market correction.

Tier-based Price Growth

• Starter Tier: Homes in the lower price range saw a 5.5% increase. This category continues to show strong growth, which could be driven by demand from first-time homebuyers looking for more affordable options.
• Mid-tier: The middle price segment experienced a 6.0% increase. This reflects a healthy market for buyers seeking a balance between affordability and desirable features.
• Luxury Tier: The luxury segment had a more modest growth rate of 2.8%, indicating that high-end properties are seeing slower price increases compared to more affordable categories.

3. March 2025 Data Summary

According to reports from MarketScreener, the New York-Jersey City-White Plains metro area saw a rebound in home prices in March 2025, signaling a positive shift as the spring buying season approached. Here’s a breakdown of the data for March 2025:

• Year-over-year increase: Home prices rose by 2.5% from March 2024 to March 2025. This indicates a steady increase in prices despite the national slowdown in the housing market.
• Month-over-month growth: From February 2025 to March 2025, home prices grew by 0.7%, showing a recovery after the 1.0% decline recorded the previous month.

This rebound in March suggests that the market in this region is regaining momentum as more buyers enter the market during the spring season.

4. Expert Analysis by First American

Chief Economist at First American, national house price growth is at its slowest level, since March 2012. In his analysis, he detailed two limitations contributing to that slow growth: housing affordability and increased inventory. These factors combine to impede the overall housing market across the United States.

While the national pace has slowed, Fleming said there still is robust demand in certain markets, like the Northeast, which includes the New York-New Jersey metro area. This strong demand is primarily due to constrained inventory in these housing markets with limited supply of homes from which buyers can choose – this keeps prices relatively stable among fierce competition among buyers.

5. Regional Comparison

BusinessWire’s February Report disclosed that Tampa, Phoenix and Denver behaved badly, as there was an over abundance of home supply, demand decreased and prices dropped.

Conversely, the New York, Jersey City and White Plains metro area and other Northeast markets were not nearly as bad off, primarily due to fewer new constructions and the continued push for demand in these markets due to the lack of supply. The limited supply in these markets continues to keep the Northeast housing market competitive, as prices, for the most part, remain steady, relative to other markets across the country.

6. Comparative Tier-Based Growth in Other Cities

According to the February Report, here are the cities with the top increases in the Starter Tier for home prices:

• Pittsburgh: +11.4%
• Baltimore: +7.8%
• St. Louis: +5.8%
• New York metro: +5.5%

These cities have shown notable growth in the starter-tier home prices, with Pittsburgh leading the way. Despite the overall cooling in the housing market, the New York metro area continues to demonstrate resilience with a solid 5.5% increase, highlighting continued demand for more affordable homes in the region.

7. Methodology (from First American)

First American’s HPI Methodology, or Home Price Index (HPI) employs a repeat-sales methodology using over 46 million paired transactions over the period going back to 1980. The methodology provides an accurate way to measure changes in home price through time.

The HPI measures starter, mid, and luxury home tiers, and it includes distressed transactions. The HPI does not include Real Estate-Owned (REO) transactions, which makes it the most accurate indicator of trends in housing prices because it only captures traditional home sales.

The preliminary data is updated every month, and the data is subject to revision as it is processed and the data is brought to its most complete form. This approach allows a comprehensive and dynamic understanding of housing price trends at a local and national level.

8. Conclusion

The New York-Jersey City-White Plains metro area is one of the few places with year-over-year (YoY) home price growth in early 2025. Unlike the rest of the country, with most housing markets changing directions, this area’s local demand continues to outweigh limited supply and seasonal pressure creates pricing stability. 

In the next few months we expect mortgage rates to stabilize while this housing market’s conditions will be ripe for both buyers and sellers. As we approach the upbeat spring buying season, the New York metro area is still an important area to follow.