10 Housing Markets Where Prices Are Plummeting The Most

While 85% of markets saw positive price growth between Q4 2022 and Q4 2023, a few markets saw falling home prices, and some drops were steep.

Some of these markets needed correction as they saw substantial 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.

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

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

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.

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.

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 and new builds may result in even further home price declines.

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.

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.

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 now looking to less expensive locales to spend their winter months.

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.

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.

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.

While some markets have seen a slight cool-down, the overall demand for housing in the U.S. stays healthy. This could present a buying opportunity for those who are financially prepared. 

Remember, a home purchase is a significant investment. So before diving in, carefully consider your job security, finances, loan options, and overall financial fitness.