7 Cities Where Home Values Are Expected to Drop by the End of 2025
With rapid population growth seen during the pandemic now over, local housing markets are seeing dynamics change. Due to increased inventory and changes in where people want to live, some cities are seeing significant declines in home values. With this in mind, GOBankingRates analyzed data from major housing markets across the U.S. to identify which ones are most likely to see home values drop in the second half of 2025. These cities include San Francisco; Austin, Texas; Phoenix, Tampa, Fla; and Boise, Idaho, among several others.
Experts agree the biggest risks lie in cities that grew too fast or depended too heavily on one sector.
Add in the Federal Reserve’s rate policy, persistent affordability issues and softening demand, and it’s clear that some local markets are in for a rocky ride.