Summary
By 2026, home prices in several U.S. cities are predicted to drop, especially in Florida and California. This forecast comes despite a general national increase in home prices. These decreases are mostly expected in areas that saw rapid price rises during the pandemic.
Key Facts
- Four of the top ten cities with expected price drops are in Florida; three are in California.
- Nationally, home prices are expected to rise 2.2% by the end of 2026.
- Cape Coral, Florida, is predicted to have the largest price drop of 10.2%.
- Home prices in 22 U.S. cities are expected to decrease.
- Florida's price drop is linked to slowed migration and rising housing costs.
- California cities expected to see price falls include Stockton, Sacramento, and San Francisco.
- Multi-family housing in Denver contributes to a predicted price drop in that city.
- Rising insurance costs and homeowner fees in coastal Florida affect housing demand.
