The S&P Cotality Case-Shiller 20-City Home Price Index rose 1.6% year-over-year in May 2026, accelerating from an upwardly revised 1.2% increase in April and exceeding market expectations of 1.3%. The annual gain was the strongest since August 2025. However, after adjusting for inflation, home prices declined for a 12th consecutive month, as May's 4.2% inflation rate outpaced nominal home price growth by 2.6 percentage points. For a third straight month, Chicago recorded the strongest annual price increase among the 20 cities, up 6.9%, followed by New York (4.2%) and Cleveland (3.1%). Meanwhile, Las Vegas posted the steepest decline (-1.9%), ahead of Seattle (-1.8%), Denver (-1.8%), and Tampa (-1.6%). On a monthly basis, home prices increased 0.9%, easing slightly from gains of 1.0% in April and 1.1% in March but continuing to reflect the seasonal strength typically seen during the spring homebuying season. On a seasonally adjusted basis, prices rose 0.2% from the previous month.