bilanol.i.ua/Depositphotos
The Sun Belt housing story is changing
For years, cities in the Sun Belt were among the hottest housing markets in the country. Buyers rushed to places like Florida, Texas, and Arizona during the pandemic. Prices surged at record speed. Homes often sell within days, sometimes for above the asking price.
That momentum is now slowing. In several major metros, prices are falling, inventory is rising, and sellers are losing leverage. The shift has surprised homeowners who expected continued gains. Market conditions are no longer as predictable.
Shutterstock
Pandemic boom towns are cooling first
Cities that saw the biggest pandemic gains are now leading the slowdown. Tampa, Miami, Phoenix, and Dallas have all posted year-over-year price declines. These markets expanded fast and are now correcting. Rapid growth created pressure on affordability.
What once felt like unstoppable growth is meeting economic reality. Buyers are pulling back as affordability worsens. Higher monthly payments are changing buyer decisions. Demand is no longer keeping pace with supply.
Shutterstock
Home prices are falling in key metros
Recent Case-Shiller data shows price declines across multiple large U.S. cities. In late 2025, at least 11 major metropolitan areas reported annual declines. Tampa recorded one of the steepest pullbacks. Other Sun Belt cities are showing similar trends…