64 major housing markets where home prices are falling

A recent analysis using the Zillow Home Value Index reveals that 64 of the nation's 300 largest housing markets experienced falling home prices between July 2025 and July 2026. This represents 21% of the markets, a slight increase from the 17.3% (64 markets) that saw declines between July 2024 and July 2025.

During the previous window of a year ago, back in July 2025, only 4 of the largest 300 housing markets were in decline. Furthermore, only 1 market saw a year-over-year price drop between July 2019 and July 2020, 4 markets in the July 2020 to July 2021 window, and 4 more in the July 2022 to July 2023 period.

Most of the declining markets are concentrated in the Sun Belt and Mountain West regions, where home prices surged significantly during the pandemic boom. Factors such as oversupply, falling inventory, and rising mortgage rates have contributed to the soften housing market. However, the number of markets witnessing price declines has begun to stabilize, with inventory growth decelerating over the past 12 months.