80 Markets Where Home Prices Are Falling the Most

The number of markets experiencing home-price declines has grown in recent years, with 80—or 27%—of the 300 largest housing markets currently experiencing year-over-year price drops. By comparison, 31, or about 10%, of the nation’s 300 largest housing markets recorded year-over-year decreases in January 2025, according to the ResiClub blog.

Austin, Texas, posted the largest year-over-year decline in April, with prices falling by 5.1%. Tampa, Fla. followed closely with a 5% drop. San Antonio, Dallas, and Phoenix also saw declines of 3.2%, 3%, and 2.8%, respectively.

The 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 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 deals.