11 US Cities Where Home Prices Are Falling the Most in 2025

Home Prices Fall in Major U.S. Cities: A Shift in the Housing Market

February 8, 2025 — The U.S. housing market is experiencing a notable downturn, with several major cities reporting significant declines in home prices. According to a recent report from Realtor.com, the median home price across the nation dropped to $402,502 in December 2024, down from $410,000 the previous year. This trend is particularly pronounced in cities like San Francisco, where prices plummeted by 10.9% year-over-year.

As the market adjusts, potential homebuyers may find opportunities in these price drops. The decline in home prices is attributed to a combination of high mortgage rates and reduced buyer demand, leading to less competition and longer listing times for homes.

Cities with the Largest Price Drops

The report highlights the following cities as experiencing the steepest declines in home prices:

1. San Francisco, California

   • Median Home Price: $889,500
   • Percentage Change: -10.9%

2. Miami, Florida

   • Median Home Price: $522,500
   • Percentage Change: -9.9%

3. Austin, Texas

   • Median Home Price: $498,500
   • Percentage Change: -7.7%

4. Kansas City, Missouri

   • Median Home Price: $369,995
   • Percentage Change: -7.5%

5. Tampa, Florida

   • Median Home Price: $395,000
   • Percentage Change: -6%

6. Jacksonville, Florida

   • Median Home Price: $384,500
   • Percentage Change: -5.7%

7. Denver, Colorado

   • Median Home Price: $577,350
   • Percentage Change: -5.4%

8. Phoenix, Arizona

   • Median Home Price: $499,995
   • Percentage Change: -5.1%

9. Cincinnati, Ohio

   • Median Home Price: $319,050
   • Percentage Change: -4.8%

10. Orlando, Florida

    • Median Home Price: $419,950
    • Percentage Change: -4.3%

11. Nashville, Tennessee

    • Median Home Price: $537,450
    • Percentage Change: -3.9%

Market Dynamics

The pandemic-driven migration to cities like Miami and Austin has reversed, with many buyers now sidelined due to high financing costs and economic uncertainty. Homes are lingering on the market longer, prompting sellers to lower their prices to attract buyers.

While the overall affordability of homes remains a challenge for many Americans, the current market conditions present a unique opportunity for those looking to purchase. As competition wanes, buyers may find themselves in a more favorable position to negotiate prices.

As the housing market continues to evolve, experts advise potential buyers to stay informed and consider the shifting landscape as they navigate their home-buying journey.