Home Prices Decline in 35% of US Metros

Nationwide, home prices saw minimal growth in September. According to ResiClub blog, home prices grew by just 0.1% year-over-year between September 2024 and September 2025, a decline from the 2.4% growth rate recorded from the same monthly comparison between 2023 and 2024. 

In addition, 35% (or 105) of the 300 largest U.S. metro areas saw home prices decline. This is an increase from January 2025, when just 10% (or 31) of the largest metro areas experienced falling home prices. Last month, 109 of the nation’s 300 largest housing markets experienced declining home prices.

Home prices are still climbing in many regions where active inventory remains well below pre-pandemic 2019 levels, such as pockets of the Northeast and Midwest. In contrast, some pockets in states like Arizona, Texas, Florida, and Colorado—where active inventory exceeds pre-pandemic 2019 levels—are seeing modest home price pullbacks.

Many of the housing markets seeing the most softness, where homebuyers have gained the most leverage, are primarily located in Sun Belt regions, particularly the Gulf Coast and Mountain West. Many of these areas saw major price surges during the Pandemic Housing Boom, with home price growth outpacing local income levels. As pandemic-driven domestic migration slowed and mortgage rates rose, markets like Tampa and Austin faced challenges, relying on local income levels to support frothy home prices.

This softening trend is further compounded by an abundance of new home supply in the Sun Belt. Builders are often willing to lower prices or offer affordability incentives to maintain sales, which also has a cooling effect on the resale market. Some buyers, who would have previously considered existing homes, are now opting for new homes with more favorable homebuilder deals.