77 Major US Housing Markets Experiencing Falling Home Prices

Falling home prices hit 77 major markets

Falling home prices continue to reshape America’s housing market as the Zillow Home Value Index shows a modest ↑ 0.8% year‑over‑year rise between May 2025 and May 2026, mirroring the pace of the previous year. Yet the number of metros slipping into negative territory has steadied after a rapid climb in early 2025.

During the first half of 2025, the share of the nation’s 300 largest markets with year‑over‑year price drops rose from 10% in January to a peak of 36% by June. Since then, the count has plateaued at 77 markets, or 26%, as inventory growth eases.

Key losers include Punta Gorda, Fla. with a ↓ 7.9% decline, London, Ky. (-7.1%), Cape Coral, Fla. (-6.1%), Austin, Texas (-5.7%), and North Port, Fla. (-5.3%).

“The slowdown reflects a shift from the pandemic‑driven surge to a more balanced market,” a senior analyst noted.

Regions still seeing price gains are those where active listings remain well below 2019 levels, notably pockets of the Northeast and Midwest. Conversely, Sun Belt metros—particularly the Gulf Coast and Mountain West—have felt the most buyer leverage, a by‑product of pandemic‑induced overbuilding and rising mortgage rates.

Builders in these areas are trimming prices or adding incentives, nudging some buyers toward new construction and further softening resale values. For a deeper look at the pandemic’s lasting impact on housing, see our pandemic analysis.

Nationally, 223 of the 300 largest metros still post year‑over‑year price growth, underscoring a bifurcated market. See the Reuters and Bloomberg reports for complementary data.