American home prices hit a new high in June, marking the fourth consecutive month of record-setting increases, according to data released Tuesday.
The latest S&P Corelogic Case-Shiller Index showed a 5.4% annual increase that represents a "decelerating trend" from May, when the gain was 5.9%, S&P Global said.
Prices rose 7.4% in the index's 10-City Composite of major metropolitan areas, led by a 9% surge in New York City.
San Diego and Las Vegas saw the next-steepest increases of 8.7% and 8.5%, respectively.
"The S&P CoreLogic Case-Shiller Indices continue to show above-trend real price performance when accounting for inflation," said analyst Brian D. Luke, head of commodities, real and digital assets at S&P Dow Jones Indices.
"While both housing and inflation have slowed, the gap between the two is larger than historical norms, with our National Index averaging 2.8% more than the Consumer Price Index."
Without accounting for inflation, home prices are up 1,100% since 1974 and have more than doubled, by 111%, when inflation is factored in, he said.
The prices of lower-priced homes have also risen faster in 75% of markets over the past five years, Luke said.
"For example, the lower tier of the Atlanta market has risen 18% faster than the middle- and higher-tiered homes," he said. "New York's low tier has the largest five-year outperformance, rising nearly 20% above the overall New York region."
Both candidates for the White House have vowed to lower the cost of housing if elected, with Vice President Kamala Harris proposing a tax credit for builders of starter homes and up to $25,000 in aid for first-time buyers.
Former President Donald Trump' campaign platform says he would make some federal land available for construction of new homes and provide tax incentives and other support for first-time buyers.
