From Boom to “Reality Check”: 39 Cities See Falling Home Prices in 2026
- Home prices declined in 39 out of 129 major U.S. cities in early 2026.
- Florida markets saw some of the biggest drops, led by Cape Coral-Fort Myers.
- Rising insurance costs and taxes are pushing homeowners to sell.
- Experts say the market is shifting toward buyers after years of high prices.
Cape Coral, Florida — The U.S. housing market is showing signs of a major shift in 2026, as home prices begin to fall across dozens of large cities, signaling what experts describe as a long-awaited “reset” after years of rapid growth.
Home Prices Decline Across Major Cities
According to a report by real estate data company ATTOM, median sale prices dropped in 39 of the 129 largest U.S. cities during the first quarter of 2026. Many of the hardest-hit areas are located in Florida, California, and the Southwest, regions that previously experienced sharp price increases during the pandemic housing boom.
The most significant drop was recorded in Cape Coral-Fort Myers, Florida, where home prices fell 9% year-over-year to $341,250. This sharp decline reflects a broader cooling trend in markets that had once been among the hottest in the country.
Pandemic Boom Cities Now Seeing Correction
Experts say many of the cities now facing price drops were also among those that saw massive valuation spikes during the pandemic, including places like Austin, Texas.
“If we want to just focus on the ones that are struggling and declining, it’s going to be, for the most part, metros in the south and the west, and Florida has been one in particular,” said Jake Krimmel, senior economist at Realtor.com…