Housing markets that looked unstoppable during the pandemic are now revealing cracks, and some are entering 2026 on especially shaky ground. I focus here on 20 cities repeatedly flagged in recent reporting as vulnerable to corrections or even crashes, highlighting why each market is at risk and what that means for buyers, sellers, and investors trying to navigate the next cycle.
1) Austin, Texas
Austin, Texas, is frequently cited among the 20 housing markets on shaky ground heading into 2026, with concerns centering on how far prices ran ahead of local incomes during the tech-fueled boom. The core reporting on shaky markets identifies Austin as vulnerable because rapid construction and aggressive bidding wars left little margin for error once demand cooled. As new supply hits the market, sellers who bought at peak valuations may find themselves competing on price, especially in outer suburbs where speculative building was most intense.
For homeowners, that raises the risk of flat or negative equity if job growth slows or mortgage rates stay elevated. Investors who counted on double-digit appreciation could instead face longer vacancies and thinner cash flow. I see Austin’s fundamentals as stronger than many Sun Belt peers, but the city’s recent run-up means even a modest economic stumble could translate into noticeable price corrections by 2026.
2) Boise, Idaho
Boise, Idaho, surged during the pandemic as remote workers chased affordability, but the market’s momentum has clearly shifted. Local data show that a continued rise in inventory is signaling a summer reset in the Boise real estate market, with more options and more selective buyers, according to a detailed look at the Boise housing market. That reset aligns with Boise’s inclusion among housing markets on shaky ground heading into 2026, where elevated prices now meet a more cautious pool of buyers.
At the same time, other reporting notes that Boise’s housing market is starting to change in a different way and investors are starting to put money back into the Boise market, as highlighted in a video titled Why Investors Are Rushing Back to BOISE, Idaho in 2025. Inventory trends have not moved in a straight line, with one analysis stating that Inventory levels have trended downward in 2025, once more increasing competition among buyers. I read these mixed signals as evidence of a market in transition, where volatility rather than steady growth is the likeliest path into 2026.
3) Phoenix, Arizona
Phoenix, Arizona, is another Sun Belt standout now flagged among the 20 housing markets on shaky ground heading into 2026. The same framework that captures Austin and Boise points to Phoenix’s sensitivity to interest rate shocks, since so much of its demand came from investors and first-time buyers stretching to afford rapidly rising prices. When borrowing costs climbed, that marginal demand thinned out quickly, leaving some newly built subdivisions with slower absorption and more aggressive incentives…