Home Prices Expected to Fall in 22 U.S. Cities in 2025
WASHINGTON – A new Realtor.com analysis projects home price declines in 22 of the 100 largest U.S. cities next year,signaling a shift in the national housing market after a period of relative stagnation. While overall home sales are forecast to reach 4.07 million in 2025, the anticipated price drops represent a meaningful change from the flat transaction rates observed throughout this year.
The cooling trend is particularly pronounced in the Southeast and West, where many markets experienced rapid growth during the COVID-19 pandemic. This forecast arrives as affordability remains a key challenge for prospective homebuyers,and as demand adjusts following the surge fueled by low mortgage rates and the rise of remote work. The analysis considered factors including inventory levels, new construction, wage growth, and unemployment rates to arrive at its projections.
The Cape Coral-Fort Lauderdale, Florida metropolitan area is predicted to see the steepest decline, with home prices expected to fall by 10.2%. The North Port-Sarasota-Bradenton, Florida region follows closely behind, projected for an 8.9% decrease. Seven of Florida’s eight largest cities are forecast to experience price drops, with Miami being the exception.
“These places, among others, saw a huge frenzy during the pandemic, so part of what we are projecting is that demand continuing to come back down to earth,” explained Realtor.com’s Krimmel to CBS News.
Despite these localized declines, prices are expected to rise in the remaining 78 largest U.S. cities, albeit modestly, with a median gain of 4%.Realtor.com’s projections are based on an examination of inventory, new construction, price growth, wage and job growth, and unemployment across the 100 cities analyzed.
