As the U.S. housing market continues to shift, experts predict that certain areas may face significant declines in property values before the end of 2025. While many regions have seen steady growth over the years, evolving economic factors could lead to reduced demand and falling prices in specific markets.
Why This Matters
For buyers, a decrease in housing prices could present an opportunity to snag a favorable deal, increasing negotiating power with sellers. Conversely, sellers may need to act swiftly, either listing their homes before further value depreciation or holding out for market stabilization.
Here are five housing markets that experts anticipate will lose value in the coming years:
- Austin, Texas
Once a booming tech hub, Austin is experiencing rising interest rates and a shift toward remote work, leading to decreased demand. As a result, property values may plummet as buyers reconsider the affordability of living in the area. - San Antonio, Texas
Although San Antonio has historically been strong, an oversaturation of new builds combined with slowed economic growth may lead to a decrease in home values. The once vibrant market could see a correction as supply begins to outstrip demand. - Phoenix, Arizona
With rapid expansion over the past decade, Phoenix faces potential overvaluation. The city’s housing market could suffer as interest rates rise, prompting buyers to pull back, which may leave sellers with diminished offers. - Raleigh, North Carolina
Raleigh’s recent growth has attracted many newcomers, but the influx may not be sustainable. As interest rates climb and job growth stabilizes, the market could experience a downturn, impacting home prices. - Boise, Idaho
Once a darling for remote workers seeking space and affordability, Boise may see values decline as rising costs of living deter potential buyers. The shift in demand could lead to a significant adjustment in the market.