Number of housing markets with falling home prices jumps to 110—up from 31 in January

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National home prices rose +0.2% year-over-year between June 2024 and June 2025, according to the Zillow Home Value Index reading published this week—a decelerated rate from the +3.2% year-over-year rate between June 2023 and June 2024.

And more metro area housing markets are seeing declines.

—> 31 of the nation’s 300 largest housing markets (i.e., 10% of markets) had a falling year-over-year reading in the January 2024 to January 2025 window.

—> 42 of the nation’s 300 largest housing markets (i.e., 14% of markets) had a falling year-over-year reading in the February 2024 to February 2025 window.

—> 60 of the nation’s 300 largest housing markets (i.e., 20% of markets) had a falling year-over-year reading in the March 2024 to March 2025 window.

—> 80 of the nation’s 300 largest housing markets (i.e., 27% of markets) had a falling year-over-year reading in the April 2024 to April 2025 window.

—> 96 of the nation’s 300 largest housing markets (i.e., 32% of markets) had a falling year-over-year reading in the May 2024 to May 2025 window.

—> 110 of the nation’s 300 largest housing markets (i.e., 36% of markets) had a falling year-over-year reading in the June 2024 to June 2025 window.

While 36% of the 300 largest housing markets are currently experiencing year-over-year home price declines, that share is gradually increasing as the supply-demand balance continues to shift directionally toward buyers in this affordability-constrained and post-housing boom environment.

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, Colorado, and Louisiana—where active inventory exceeds pre-pandemic 2019 levels—are seeing modest home price corrections.

Year-over-year home value declines, using the Zillow Home Value Index, are evident in major metros such as Austin (-5.8%); Tampa (-5.7%); Miami (-3.8%); Dallas (-3.7%); Orlando (-3.7%); Phoenix (-3.5%); San Francisco (-3.4%); San Antonio (-3.3%); Jacksonville, Florida (-3.2%); Atlanta (-2.9%); Denver (-2.7%); San Diego (-2.4%); Raleigh (-2.1%); Sacramento (-1.8%); Houston (-1.8%); Riverside (-1.5%); New Orleans (-1.2%); Charlotte (-1.0%); Memphis (-1.0%); San Jose (-0.9%); Portland, Ore. (-0.4%); Seattle (-0.1%); Los Angeles (-0.4%); and Birmingham (-0.1%).

Click here for an interactive version of the chart below

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.

Click here to view an interactive version of the map below

Given the shift in active housing inventory and months of supply, along with the soft level of appreciation in more markets this spring, ResiClub expects the number of metro areas with year-over-year home price declines in the Zillow Home Value Index to continue ticking up in the coming months.

Speaking on a podcast back in January, I predicted that the current trajectory would see the count rise to around 150 of these 300 largest metro area housing markets with negative year-over-year growth at some point in the second half of 2025. That still appears to be the trajectory.

This softening and regional variation should not surprise ResiClub PRO members—we’ve been closely documenting it. [ResiClub PRO members can view our latest analysis of home prices across +800 metros and +3,000 counties here.]

Of course, while 110 of the nation’s 300 largest metro area housing markets are seeing home price declines, another 190 are still seeing year-over-year home price increases.

Where are home prices still up on a year-over-year basis? See the map below.

Click here to view an interactive of the map below

Today, we got the latest permits and housing starts data.

It shows that single-family permits continue to soften, while multifamily permits are holding steady—perhaps passing through a trough—following a sharp pullback in 2023-2024.

Keep in mind that permits (and starts) lead completions. While multifamily permits fell sharply in 2023-2024, multifamily completions reached their highest levels since 1974, as projects financed during the ultralow pandemic rates came online. Now, multifamily completions are rolling over.