In this article, we will be covering the 20 cities where home prices are falling the most in the US. If you wish to skip our detailed analysis, you can move directly to the 5Cities Where Home Prices Are Falling Most in the US.
Housing Prices Amidst Expected Rebound
As reported by the National Association of Realtors, home prices increased in more than 85% of US metros during the fourth quarter of 2023. Some of the US metros with the largest year-over-year median price increases include Dayton, Trenton, Newark, and Johnson City. You can also take a look at other US metros with the highest median list prices. Simultaneously, the national median single-family existing home price experienced a growth of 3.5% as compared to 2022. With respect to home sales, the highest single-family existing-home sales were recorded in the South. The South witnessed a 3.2% year-over-year growth in home prices. Home prices increased by 7.3% in the Northeast and 4.7% in the Midwest. The West recorded a growth of 4.2%.
On the other hand, 32 out of 221 US metro markets saw a decline in home prices in 2023’s fourth quarter. This accounts for less than one-fifth of the total market. During the same period, housing affordability became less of a concern. This was backed up by the 30-year fixed mortgage rate dropping from 7.79% to 6.61%. Typically, families used 26.1% of their income for mortgage payments which was 26.7% less as compared to the third quarter of 2023. Affordable housing markets in the US in 2023 have been previously covered.
Amidst improving market conditions by the end of 2023, first-time homebuyers still encountered housing issues. Other than a shortage of houses in the market, the monthly mortgage payment on a typical house was 9.8% higher than in 2022. An income of at least $100,000 was required to make a 10% down payment on a mortgage in 47.1% of US housing markets.
Finally, a housing market rebound has been forecasted for 2024. Apart from the cooling mortgage rates, the builder sentiment has also improved thereby indicating better conditions for future construction. The coming spring homebuying season is expected to be favorable while new listings have increased in the market. During February, 14.8% more homes were seen actively for sale as compared to the same period in 2023.
Homebuilders Providing Affordable Real Estate Options
LGI Homes, Inc. (NASDAQ:LGIH), Lennar Corporation (NYSE:LEN), and KB Home (NYSE:KBH) offer a diverse range of housing options across the nation that are affordable. Let’s take a look at some of the most recent initiatives taken by these firms in their respective businesses.
LGI Homes, Inc. (NASDAQ:LGIH) engages in the design, construction, and sale of homes across 36 markets in 21 states. The company has closed more than 65,000 homes in its history. On March 1, LGI Homes, Inc. (NASDAQ:LGIH) announced its new community in the Atlanta market. The community ‘Bold Springs Farm’ offers recreational opportunities for fishing and picnicking. Family-friendly amenities include a playground, pickleball court, and basketball court. Students in the community can seek quality education in the Gwinnet County School District. Prices for the move-in ready homes at Bold Springs Farm begin in the $380,000s.
Lennar Corporation (NYSE:LEN) is an American home construction company that constructs affordable, move-up, and active adult homes. It also engages in the development of high-quality multifamily rental properties. On March 12, Lennar Corporation (NYSE:LEN) reported that the company initiated sales at a new community in Plant City, Florida. The community ‘Park East’ is close to downtown Tampa and boasts amenities including a swimming pool, cabana, and fully equipped playground. Pricing of homes at Park East starts in the low $300,000s.
KB Home (NYSE: KBH) is one of the largest homebuilders in the United States. The firm builds quality homes that are customized as per the buyer’s preference and available budget. On March 12, KB Home (NYSE: KBH) reported the grand opening of its newest master-plan community in Justin, Texas. The community ‘The Preserve’ provides amenities such as a pool with clubhouse, sports fields, and playgrounds. Residents can conveniently access Fort Worth, Denton, Westlake, and Grapevine while staying in the community. The Preserve is also located close to Downtown Justin and Denton Town Square. Pricing for new homes starts from the $320,000s.
You can also view some of the largest homebuilders in the US. Now that we have navigated through real estate in the US, let’s move to the 25 cities where home prices are falling most in the country.
20 Cities Where Home Prices Are Falling Most in the US
20 Cities Where Home Prices Are Falling Most in the US
Our Methodology:
In order to compile our list of 25 cities where home prices are falling most in the US, we sourced data from the latest quarterly report by the National Association of Realtors (NAR). We shortlisted the cities based on the year-over-year decline in median prices of single-family homes. The cities have been ranked in ascending order of the year-over-year decline in their median home prices as of the fourth quarter of 2023.
20 Cities Where Home Prices Are Falling Most in the US
20. Eugene, Oregon
YoY Change in Median Home Price:-2%
Home prices are falling in Eugene which is a city situated in Oregon’s Lane County. Since the fourth quarter of 2022, the median home price in Eugene has decreased by 2% year over year. As of 2023’s fourth quarter, the city boasts a median home price of $450,400.
19. Memphis, Tennessee
YoY Change in Median Home Price: -2.2%
As recorded in 2023’s fourth quarter, the median home price in Memphis was $248,400. This price went down by 2.2% year-over-year and ranks the city among the 20 US cities where home prices are falling the most in the US.
18. Little Rock, Arkansas
YoY Change in Median Home Price:-2.3%
Little Rock serves as the capital of Arkansas. The year-over-year change in the city’s median home prices was recorded at -2.3% which implies that the home prices are falling in the city.
17. Crestview, Florida
YoY Change in Median Home Price: -2.3%
The Okaloosa County in Florida hosts the US city of Crestview which is witnessing decreasing home prices. The city’s median home price in Q4 2023 was $394,600. The price decreased by 2.3% year-over-year.
16. Owensboro, Kentucky
YoY Change in Median Home Price:-2.4%
Owensboro is situated in the Daviess County, Kentucky. The city’s median home price experienced a year-over-year decline of 2.4% in the fourth quarter of 2023. Hence, Owensboro is another US city where home prices are declining.
15. Austin, Texas
YoY Change in Median Home Price:-2.6%
Austin is the capital of Texas and ranks among US cities where home prices are falling the most. In 2023’s fourth quarter, the median home price in the city was recorded at $466,400. This price decreased by 2.6% year-over-year.
14. Myrtle Beach, South Carolina
YoY Change in Median Home Price: -2.9%
Myrtle Beach is a known resort city in the US. Home prices seem to be declining in the city. The city’s median home price decreased by 2.9% year-over-year, as recorded in the fourth quarter of 2023.
13. Chico, California
YoY Change in Median Home Price:-3%
In 2023’s fourth quarter, the median home price in Chico was $407,000. According to the National Association of Realtors, this price witnessed a year-over-year decrease of 3%. Therefore, Chico ranks among cities where home prices are falling most in the US.
12. Cape Coral, Florida
YoY Change in Median Home Price:-3.5%
The 20 cities where home prices are falling most in the US rank Cape Coral as well. The city is positioned in the Lee County in the US state of Florida. In the fourth quarter of 2023, the city’s median home price was $400,000 which decreased by 3.5% year-over-year.
11. Beaumont, Texas
YoY Change in Median Home Price:-3.8%
The median home price in Beaumont in 2023's fourth quarter was recorded at $199,400. This price decreased by 3.8% since 2022 thereby ranking the city among the cities where home prices are falling most in the US.
10. Sarasota, Florida
YoY Change in Median Home Price:-3.9%
Sarasota is a US city situated in Southwest Florida. Home prices are falling in the city since the year-over-year decrease in median home prices was recorded at 3.9% during the fourth quarter of 2023.
9. Elmira, New York
YoY Change in Median Home Price:-4.2%
Located in Chemung County in the US state of New York, Elmira is another city where home prices are declining the most. The city’s median home price was recorded at $142,700 in Q4 2023. This price went down by 4.2% since the same period in 2022.
8. San Antonio, Texas
YoY Change in Median Home Price:-4.3%
San Antonio is a populous city in Texas where home prices are falling most. In the fourth quarter of 2023, the median home price in the city was $315,700. The year-over-year decline in this price was reported to be 4.3%.
7. New Orleans, Louisiana
YoY Change in Median Home Price:-4.6%
The city of New Orleans is situated along the Mississippi River in southeastern Louisiana. As recorded in 2023’s fourth quarter, the year-over-year decline in the city’s median home price was 4.6%. Hence, New Orleans is another city with falling home prices.
6. Provo, Utah
YoY Change in Median Home Price:-4.8%
The Utah-based city of Provo boasts falling home prices. The median price in the city was recorded at $500,900 in the fourth quarter of 2023. This price went down by 4.8% year-over-year.
