Market Watch: Number of U.S. Housing Markets Seeing Home Price Declines Jumps to 110

Jul 18, 2025·By Joe Iuliucci

A growing number of metro housing markets across the country are now experiencing falling home prices year-over-year, signaling a broader regional slowdown in appreciation trends. According to data released this week via the Zillow Home Value Index (ZHVI), 110 of the nation’s 300 largest metro areas posted annual price declines between June 2024 and June 2025—a significant jump from just 31 markets reporting declines back in January.
This trend has been unfolding steadily over the past six months:
*January 2025: 31 markets with falling YoY prices
*February: 42 markets
*March: 60 markets
*April: 80 markets
*May: 96 markets
*June**: 110 markets (36% of the top 300 metros)
(Source: Zillow Home Value Index via reporting by Lance Lambert, *ResiClub*, July 2025)

Shifting Momentum Toward Buyers
This softening is largely driven by affordability constraints, elevated mortgage rates, and a shift in supply-demand dynamics. While many markets in the **Northeast and Midwest** are still holding up—thanks to tight inventory well below pre-2019 levels—others, particularly in **Arizona, Texas, Florida, Colorado, and Louisiana**, are facing modest price corrections as listings rise.
Some of the most notable year-over-year home price declines are happening in major Sun Belt metros, including:
*Austin, TX: -5.8%
*Tampa, FL: -5.7%
*Miami, FL: -3.8%
*Dallas, TX: -3.7%
*Orlando, FL: -3.7%
*Phoenix, AZ : -3.5%
*San Francisco, CA: -3.4%
*San Antonio, T: -3.3%
*Atlanta, GA: -2.9%
*Denver, CO: -2.7%
*San Diego, CA: -2.4%
(Full list: *ZHVI, June 2025*)

What’s Causing the Downshift?
Many of these softening markets saw rapid appreciation during the pandemic-era housing boom, where prices often far outpaced local wage growth. Now, with pandemic migration slowing and interest rates elevated, those inflated values are recalibrating. Compounding the issue is a surge in **new construction inventory** in Sun Belt regions, where builders are more willing to offer price cuts and incentives—cooling the resale market in the process.
Permits & Supply Indicators
Data from July also shows a continued pullback in single-family housing permits, suggesting future supply will be more restrained. Meanwhile, multifamily permits appear to have stabilized after a sharp decline in 2023–2024. While permitting slowed, multifamily completions reached their highest level since 1974 as pandemic-financed projects wrapped up. That pipeline is now tapering off.
(Source: U.S. Census Bureau Housing Starts & Permits Report, July 2025)

What Comes Next?
Experts at ResiClub anticipate the number of metro markets with falling prices could reach 150 out of 300 by late 2025 if current trends persist. Still, it’s important to note that 190 metro areas are still seeing positive year-over-year appreciation, showing just how localized housing performance has become.
Markets with stronger local economies and tighter supply—especially those less affected by investor overreach or rapid in-migration—are generally more insulated from the broader slowdown.
Sources:
Zillow Home Value Index (ZHVI), June 2025
ResiClub reporting by Lance Lambert, July 2025
U.S. Census Bureau, New Residential Construction Report, July 2025

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