Housing price declines broaden across major US markets
Analysis of Zillow data reveals that 66 of the 300 largest US housing markets saw year-over-year price declines in September, as elevated mortgage rates and cooling demand weigh on values.
The US housing market is experiencing a broad-based cooling period as year-over-year price growth slowed to 1.0% in September 2025, down from 1.3% in August. Analysis by ResiClub indicates that 22% of the nation’s 300 largest housing markets now report falling home prices, up from 18% just one month prior.
The downturn is particularly concentrated in Sun Belt and Mountain West regions. Many of these areas saw rapid appreciation during the pandemic that outpaced local income growth. Now, faced with mortgage rates exceeding 7.00% and an influx of new home construction, buyers are gaining leverage, leading to price corrections in secondary markets like Tampa and Austin.
In contrast, parts of the Northeast and Midwest remain resilient, supported by inventory levels that have yet to recover to pre-pandemic norms. While 234 major markets still report nominal price gains, many of these increases are failing to keep pace with inflation and wage growth, representing a decline in real housing values.
The widening gap between strong and weak markets underscores a period of significant bifurcation. Industry observers point to local inventory levels as the primary indicator for future price performance as the national market adjusts to the current affordability environment.