10 Housing Markets Where Prices are Crashing Through the Floor

Explore why these real estate oddballs have plummeting prices.

couple signing purchase agreement buying first home together
Updated May 28, 2024
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While 85% of markets saw positive price growth between Q4 2022 and Q4 2023, a few markets saw falling home prices, and some of the drops were steep.

Some of these markets needed correction as they saw strong gains during the pandemic years.

The demand for housing remains strong nationally, so the dips in these markets may represent a good time to make smart money moves and potentially buy a home.

Here are the 10 markets that showed the strongest decline in the past year and by how much.

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10. Beaumont-Port Arthur, Texas – 3.8%

gchapel/Adobe aerial view of beaumont texas

Texas represents a unique housing market, as it saw a huge bump from Californians and New Yorkers who fled the big cities during the remote work of the pandemic.

Now that inbound migration has slowed down and more new homes are being built, the prices in markets like Beaumont have ebbed.

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9. North Port-Sarasota-Bradenton, Florida – 3.9%

SeanPavonePhoto/Adobe Sarasota Florida USA

Home prices exploded between 2013 and 2023, rising 148% during that decade.

However, homeowner insurance is more expensive in Florida than in any other state, which could dampen how much homebuyers are willing to spend on a mortgage and how long it will take them to pay off that mortgage.

8. Elmira, New York – 4.2%

Jacob/Adobe Arial view of Elmira upstate NY

The age of the housing stock may be partly to blame for the price decline in this area of western New York.

About 80% of Chemung County homes were built prior to 2000. Affordability is low for both renters and buyers, resulting in many would-be homebuyers sitting on the sidelines, which puts downward pressure on pricing.

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7. San Antonio-New Braunfels, Texas – 4.3%

Reagan/Adobe cars driving around roundabout in new braunfels during day time

After years of climbing prices, Alamo City is finally seeing housing prices pull back. Economists predict that the lock-in effect of low mortgage rates will eventually fade, and more Texans will put their homes on the market. The increased inventory, along with new builds, may result in even further home price declines.

6. New Orleans-Metairie, Louisiana – 4.6%

Kovcs/Adobe beautiful view of New Orleans, Louisiana,Skyline at sunset

Affordability has hampered home sales in The Big Easy. Many homebuyers are sitting on the sidelines.

People are finding themselves hampered by high interest rates and homeowners insurance prices that have reached crisis levels, causing home prices to weigh down slightly, even in high-dollar neighborhoods.

5. Provo-Orem, Utah – 4.8%

SeanPavonePhoto/Adobe Provo Utah USA downtown on center street

Many housing markets in Utah saw significant gains during the pandemic years, thanks to their proximity to Silicon Slopes — a tech hub home to dozens of employers happy to keep workers close while letting them work from home.

However, runaway prices have started to go backward in markets like Provo, as there is currently a large gap between income and home prices.

4. Punta Gorda, Florida – 5.5%

David Sussman/Adobe sunrise southwest florida at punta gorda

Like in North Port/Sarasota, the homeowner insurance crisis has also put downward pressure on home prices in Punta Gorda.

The increased cost of housing has sapped demand from would-be snowbirds who are now looking to less expensive locales to spend their winter months.

3. Akron, Ohio – 5.6%

SeanPavonePhoto/Adobe Akron, Ohio

Akron was once one of the hottest real estate markets in the nation. Those red-hot prices have since decreased.

Despite Akron’s rise and subsequent fall in housing prices, it remains an affordable place to buy a home.

2. Naples-Immokalee-Marco Island, Florida – 5.9%

SeanPavonePhoto/Adobe naples florida

Also on the Gulf Coast, the Naples area has suffered the same fate as some other Florida housing markets.

The area's increase in inventory could account for some of the drop in pricing.

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1. Jackson, Mississippi – 14.1%

SeanPavonePhoto/Adobe jackson mississippi skyline

Jackson is the only market that fell double digits from Q4 2022 to Q4 2023.

Like many other markets on this list, Jackson experienced a surge in housing prices during the pandemic, rising almost 50%.

Prices have since corrected, especially as Jackson is not as prime a target for out-of-state migration from hot markets like New York or California.

Bottom line

Monkey Business/Adobe female realtor showing couple interested in buying around house

The demand for housing remains strong throughout the U.S. in general, so while these areas have seen declines in the last year, that doesn’t mean they aren’t desirable places to live.

In fact, a small dip could be an advantageous time for people to consider buying a home. As with any major financial decision, whether buying a home in any of these markets is the right decision will be influenced by many factors, such as job outlook, pricing, financing, and more.

Check out your financial fitness before buying a home, regardless of what the market is doing.

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Author Details

Jenny Cohen

Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and FoxSports.com.