New Jersey Posts Highest Home Price Growth in US

New Jersey clocked the steepest annual home price jump in the United States this February. Prices shot up 5.93%, based on figures from Cotality. Newark grabbed the biggest year-over-year gain when stacked against the nation's 100 largest metro areas — a whopping 6.7%.

The Garden State bucked what most of America experienced. Single-family home prices across the U.S. inched up just 0.5% year over year in February 2026 versus February 2025. Illinois trailed behind with a 4.83% bump, and North Dakota watched prices surge 4.92%.

Cotality — an Irvine, Calif.-based company that provides property information and analytics — compiled the numbers. They say the Midwest and Northeast are holding steady, propped up by affordability and jobs in higher wage sectors. Massachusetts and Pennsylvania have biotech and medical research. New York and the Garden State boast financial services and fintech. Other coastal states are pushing green infrastructure.

Out in the Midwest, home price stability stems from manufacturing making a comeback as companies work around tariffs. CHIPS Act money is flowing into states like Ohio and Michigan. Renewable energy is expanding in places like Iowa and Kansas.

Thirteen states posted year-over-year drops. Washington, D.C. led the slide at -3.01%. Florida fell -2.30%. Montana dipped -1.52%.

"These diverse trends indicate an ongoing process of price discovery — one where sales and comparisons remain limited — and underscore a market that is rebalancing locally rather than correcting nationally," said Cotality Chief Economist Dr. Selma Hepp, according to ROI-NJ. "Although the steady decrease in mortgage rates prior to the spring homebuying season raised hopes for a rebound in home prices and sales in 2026, the recent surge in rates has reduced demand in the housing market, shifting expectations for a broader recovery this year."

Mortgage rates tell a different story now. After dropping to 6.05% on March 1, the average interest rate for a 30-year fixed mortgage hit 6.50% as of April 7, per Bankrate.

Cotality's forecast? Annual U.S. home price gains will climb to 4.7% year over year in February 2027.