Summary
Realtor.com predicts that house prices are likely to fall in 22 of the 100 largest U.S. cities in 2026, particularly in the South and West regions. High home prices, along with elevated mortgage rates and other costs, have kept the homeownership rate stable at around 65% in recent years. Despite an expected national price increase of 2.2% in 2026, certain metropolitan areas anticipate declines, with Florida seeing some of the steepest drops.
Key Facts
- Realtor.com predicts house prices will fall next year in 22 major U.S. cities.
- Most of these cities are in the South and West, with several in Florida.
- In October 2023, the median home sale price was $439,869, up 1.3% from the previous year.
- The U.S. homeownership rate was at 65% in the second quarter of 2025, the lowest since 2019.
- Realtor.com expects national home prices to rise by 2.2% in 2026.
- Florida's Cape Coral-Fort Myers area faces the biggest expected drop, with prices possibly falling by 10.2%.
- Other cities with expected price declines include Raleigh, North Carolina, and Denver-Aurora-Lakewood, Colorado.
- Areas in Florida faced high demand during the pandemic, but increased construction has now led to more available homes, lowering prices.
