Home Prices Fall in 35% of US Housing Markets

A new analysis from John Burns Research and Consulting finds that prices for new homes are declining in 35%, or 53 of the top 150 U.S. metros examined in the report. Nationally, home prices were down 1% as of July 2025.

Despite falling prices, the resale market is seeing substantial growth

New-home prices are down 1.5% from last year as builders face an unusual surplus of completed but unsold homes. In many areas, new construction is outpacing job growth, creating more supply than demand. To attract buyers, builders are cutting prices and offering incentives to drive traffic and sales.

Pricing dynamics look a little different in the resale market, however. According to the report, resale prices are actually up in 65% of the 150 housing markets analyzed. 

Where are home prices falling the most?

As of July 2025, the Midwest and Northeast were the only regions with rising home prices, posting gains of 2% and 3% respectively. By contrast, the West Coast experienced the sharpest declines. Southern California saw the steepest drop at 5%, followed by Northern California at 4%. Texas followed closely behind the West Coast, with a 3% decline in home prices. 

On a metro level, Sun Belt cities are seeing the steepest home price declines

• 80 Markets Where Home Prices Are Falling the Most: A study from May found that home prices are falling the most in Sun Belt cities, such as Austin, Texas, and Tampa, Fla. 
• Cities Where Home Prices Are Falling Ahead of Spring Buying: As of February 2025, Kansas City, Kan., Austin, Texas, and Miami recorded the most substantial home price declines.