Chat
Chat with Sales Hours: Monday-Friday 8:30 a.m. - 4:30 p.m. (CST)
Contact Sales
Call Sales Toll-Free 1-(866) 774-3282 Hours: Monday-Friday 7 a.m. - 5 p.m. (CST)
Product Login
Product Log-in
Product Support
Product Support
Email Sales
Contact Sales
After Hours
  • Support
  • Sign In Sign In
  • AUS NZ UK
CoreLogic - Home
  • Solutions
    view solutions by:

    Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence

    Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker

    Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax

    Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather Verification
    • Claims Automation
    • Restoration
    • INTRCONNECT

    Mortgage Lenders

    • Origination

    Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring

    Mortgage Appraisers

    • Appraisal

    Real Estate Agents & Brokers

    • Agents & Brokers

    Real Estate MLS

    • Multiple Listing Enterprises

    Commercial Real Estate Owners

    • Commercial Property Tax

    Marketing Departments

    • Property Data

    Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification

    Construction Contractors

    • Restoration Contractors

    General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
  • Resources

    Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index

    Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles

    More Resources

    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes
  • Company
    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Search
CoreLogic - Home
  • Solutions
  • Resources
  • Company

    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Accounts

    • Products Sign-in
  • Contact

    • Sales Contact
    • Product Support
  • Regions

    • Australia
    • New Zealand
    • United Kingdom
  • Social

    • Facebook
    • Instagram
    • Linkedin
    • Twitter
    • Youtube
Solutions
VIEW BY:
  • Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence
  • Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker
  • Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax
  • Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather Verification
    • Claims Automation
    • Restoration
    • INTRCONNECT
  • Mortgage Lenders

    • Origination
  • Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring
  • Mortgage Appraisers

    • Appraisal
  • Real Estate Agents & Brokers

    • Agents & Brokers
  • Real Estate MLS

    • Multiple Listing Enterprises
  • Commercial Real Estate Owners

    • Commercial Property Tax
  • Marketing Departments

    • Property Data
  • Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification
  • Construction Contractors

    • Restoration Contractors
  • General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
Resources
  • Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index
  • Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles
  • More Resources

    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes

Home / Intelligence / U.S. Home Prices and Inflation

ABOUT THE AUTHOR
Molly Boesel
Molly Boesel
Principal, Economist, Office of the Chief Economist
View Profile
  • March 30, 2022

U.S. Home Prices and Inflation

U.S. Home prices soared in 2021, pushed up by strong demand and a limited supply of homes for sale. In 2021, the CoreLogic Home Price Index (HPI) posted the highest year-over-year growth in its 44-year history. However, year-over-year growth isn’t the only way to view home price appreciation. Viewing price changes for an entire year, not just for one month, and adjusting for inflation in all other goods, puts 2021 home price growth below record levels.

The CoreLogic HPI is measured in nominal terms, meaning that it is not adjusted for inflation.  From 2012 to early 2021, annual inflation in non-shelter goods averaged about 1%[1]. In early 2021, inflation began to increase and reached a 40-year high of nearly 9% in December of last year. In 2021, year-over-year growth in the HPI broke the previous record from 1977 in nominal terms. When adjusted for inflation, annual HPI growth is reduced for most of 2021, and in December it is cut from 18% to 10%, putting adjusted HPI below what it was in 2005.

Figure 1: Inflation Spiked in 2021

Figure 1 Inflation Spiked in 2021
Source: BLS Consumer Price Index (CPI) less shelter
© 2022 CoreLogic,Inc., All rights reserved.

Growth in CoreLogic HPI is typically reported on a year-over-year basis, meaning that it reflects the 12-month growth rate for a particular month. A year-over-year measure is useful when showing the most recent trends in the index. When comparing a full year of home prices, it can be useful to show the average of the growth rates for an entire year. When using the annual average growth in the nominal index, 2021 had the fifth-highest increase in home prices. It was outranked in terms of growth by the late 1970s and 2005. When using the annual average growth in the inflation-adjusted HPI, 2021 moves into second place for record home price growth and is beat out by 2005, when prices were booming and inflation was two-thirds what it was in 2021.

Figure 2: Inflation-Adjusted HPI Below Peak

Figure 2 Inflation-Adjusted HPI Below Peak
Source: CoreLogic HPI, February 1, 2022 release, calculations using BLS Consumer Price Index (CPI) less shelter
© 2022 CoreLogic,Inc., All rights reserved.

There is no doubt that 2021 was a record year for housing. High demand and low supply pushed home prices to historical highs. Home price appreciation is expected to ease throughout 2022, starting the year off at double-digit rates and slowing to 3.5% by December. Given the latest projections for inflation, when home price growth is adjusted for inflation, it could be close to zero at the end of 2022.

Figure 3: HPI Annual Average Change Fifth Highest in 2021

Figure 3 HPI Annual Average Change Fifth Highest in 2021
Source: CoreLogic HPI, February 1, 2022 release, calculations using BLS Consumer Price Index (CPI) less shelter
© 2022 CoreLogic,Inc., All rights reserved.

Thank you for watching today. For more information on the latest housing trends, including home prices, please visit Corelogic.com

© 2022 CoreLogic,Inc., All rights reserved.

[1] The BLS Consumer Price Index Less Shelter is used to adjust the CoreLogic HPI in this analysis.

  • Category: Intelligence, OCE Monthly, Podcast/Vodcast
  • Tags: Home Price Index, Housing Market, Valuation
ABOUT THE AUTHOR
Molly Boesel
Molly Boesel
Principal, Economist, Office of the Chief Economist
View Profile

Related Posts

Jan23CSIPromo
Home Price Insights

US CoreLogic S&P Case-Shiller Index Growth Rate Cools Further in November, Up by 7.7%

Annual U.S. home price growth continued to relax in November for the seventh straight month.

January 31, 2023
CoreLogic Reactor Tordado
Hazard HQ

January 24 EF-3 Tornado in Harris County, Texas

CoreLogic Tornado Forensics Technology captured the EF-3 tornado path that ripped through southeastern Harris County on Jan. 24 to damage homes and disrupt industrial operations.

January 31, 2023
Appraisal Waiver
Blogs

How New Appraisal Waiver Policies Affect Old Homebuying Practices

Electing to accept an appraisal waiver may make the difference between closing on a loan and getting stuck in a repeat bidding cycle.

January 27, 2023

About Corelogic

  • Newsroom
  • Leadership
  • Careers
  • Ethics & Compliance

Accounts

  • Products Sign-in

Contact

  • Sales Contact
  • Product Support

Regions

  • CoreLogic Australia
  • CoreLogic New Zealand
  • CoreLogic UK

Follow & Connect

  • Facebook
  • Instagram
  • Linkedin
  • Twitter
  • YouTube
© 2023 CoreLogic. All rights reserved.
  • Legal
  • Privacy Policy
  • CCPA
  • Security
  • Sitemap
  • Accessibility
  • Legal
  • Privacy Policy
  • CCPA
  • Security
  • Sitemap
  • Accessibility