Realtors Predict House Prices Will Plummet in These 6 Popular Big Cities

There are many reasons why city living is so popular: life in these locales is walkable, diversity tends to be higher, jobs are often plentiful, and there's never a shortage of restaurants to visit and activities to enjoy.

If you want the perks of urban dwelling but need to lower your financial stress, moving to one of these popular cities can give you the best of both worlds, by way of decreasing home prices.

In some destinations prices could drop dramatically, while in others, mortgage broker Mike Roberts, Co-Founder of City Creek Mortgage in Draper, Utah has a more measured approach.

“I won’t exactly say plummet, but there are cities where the market dynamics are shifting to favor buyers a bit more,” he says. So what’s the scoop? Keep reading to find out.

When you examine the data, it looks like big changes are already happening in Baton Rouge, according to real estate agent Ryan Dossey, co-founder of SoldFast, a real estate brokerage in Los Angeles.

“According to data from Redfin, 72% of listed homes have reduced their asking price, days on the market are up to 80 (it was 45), and new home sales are down 13%,” he says. “Property values in Baton Rouge went up by 18.5% in just a year.”

That could mean a significant drop in home prices is imminent.

While Realtor Nadia Khan, Founder of Nadia Khan Estates at eXp Realty doesn’t see a plummet on the horizon for the greater D.C. area, uncertainty in the region means it’s one to watch as home and rental prices could decrease.

“There are too many contributing factors to say for certain what will happen, e.g. tariff laws, labor shortages, federal layoffs, and reversing remote work,” she says. “I think that rental prices may come down because many federal workers rent; however, the private sector may absorb some of these folks and they could stay in the area.”

Who stays and who goes will determine how heavy the market may swing.

This perennial Sunbelt favorite draws home buyers seeking sunnier skies, but according to Roberts, the tide appears to be shifting.

“Phoenix saw a massive influx of people and investment during the pandemic, driving prices way up,” he says. “But construction also ramped up, and now we’re seeing more homes on the market.”

Unless demand increases, prices could drop to try and move that inventory.

Atlanta, with its thriving job market, is a diverse and relatively affordable metro compared to many others.

“However, all that attention has spurred a ton of new construction, especially in the suburbs,” Roberts says. “If the pace of construction outstrips the rate of people moving in, we could see downward pressure on prices.”

That means investing in The Big Peach could be a savvy move if that trend comes to pass.

Home prices fell in several Florida markets throughout 2024, including Miami, Tampa, Jacksonville, and Orlando. Real estate developer Paul Herskovitz, CEO and Founder of Discount Lots, a private buyer group in Florida, predicts the trend will continue in the latter.

“Given a surplus of luxury homes, Orlando was a favorite spot for vacation leases and Airbnbs, but prices are ready to drop,” he says.

It remains to be seen if new condo regulations will continue to impact home prices in Orlando and beyond in the Sunshine State.

With its many outdoor activities, beautiful scenery, and bustling economy, Denver real estate was beyond thriving, as noted by Roberts.

“Denver's another market that got superheated; now, we're seeing inventory levels rise,” he says. “Naturally, buyers will have more choices and won't be forced to overbid as much.”

That means the dream of homeownership in Denver is alive and well.

Purchasing real estate can be a great way to tap into a new source of income, providing you do the work required to turn your purchase into an investment.

Even if you plan to live in the home rather than sell it for a profit, you’re still building equity when you’re an owner. Just make sure you buy at the right time and be prepared to play a long game.