77 of the nation's 300 largest housing markets — approximately 26 percent — recorded year-over-year home price declines in the period from May 2025 to May 2026, while 223 markets continued to post annual gains, according to ResiClub Analytics data published in June 2026. The declining markets are concentrated heavily in Florida, other Sun Belt metros, and select mountain and coastal markets that experienced outsized pandemic-era appreciation.
Where Prices Are Falling
The markets seeing the largest year-over-year price declines are overwhelmingly concentrated in Florida and pandemic-era boom markets in the South and Mountain West:
| Market | State | YoY Price Change |
|---|---|---|
| Punta Gorda | Florida | -7.9% |
| London | Kentucky | -7.1% |
| Cape Coral | Florida | -6.1% |
| Austin | Texas | -5.7% |
| North Port | Florida | -5.3% |
| Kahului | Hawaii | -4.6% |
| Naples | Florida | -4.4% |
Florida markets dominate the decline list. Punta Gorda, Cape Coral, North Port, and Naples — all Gulf Coast Florida markets — collectively represent four of the seven steepest declines among the 77 markets tracked. Austin, Texas, at -5.7 percent is the most prominent Texas market in the decline group and the only major Texas metro appearing in the top seven.
The pattern aligns with the Realtor.com June 2026 report showing Austin at -8.2 percent per square foot in list price — the steepest decline among the top 50 metro areas nationally.
Why Sun Belt Markets Are Falling Furthest
The Sun Belt and Gulf Coast markets that are declining most sharply share a common history: they experienced the steepest appreciation during 2020-2022, often doubling in value within 18-24 months. That appreciation was driven by a combination of remote-work migration, investor demand, and historically low mortgage rates that amplified purchasing power.
When mortgage rates moved from 3 percent to 7 percent between early 2022 and late 2023, the buyer pool for Sun Belt markets — which had been drawn from the entire country — contracted sharply. Local income levels in Punta Gorda and Cape Coral cannot support the prices that were set by in-migration demand at 3 percent rates. The correction is the market returning to what local buyers can actually afford.
Florida specifically faces compounding headwinds: property insurance premiums have surged dramatically following multiple hurricane seasons, and homeowners association fees in many coastal communities have risen sharply in response to new reserve requirements under Florida's post-Surfside condo legislation.
The 223 Markets Still Gaining
The majority of the nation's 300 largest markets — 223 of them, or 74 percent — are still posting year-over-year home price gains. These markets tend to be in the Northeast, parts of the Midwest, and markets that did not experience the same magnitude of pandemic-era price acceleration.
ResiClub notes that over the past 11 months, the list of declining markets has begun to stabilize rather than expand — a sign that the Sun Belt correction may be working through the most overvalued inventory rather than spreading to healthier markets.
What This Means for Homeowners
The geographic concentration of price declines has direct implications for how sellers should assess their position:
In Florida Gulf Coast markets: Sellers are competing in markets down 5-8 percent year over year with elevated inventory and rising carrying costs (insurance, HOA fees, property taxes). The correction has not fully run its course. Waiting to sell in hopes of price recovery in the near term conflicts with the compounding carrying cost math.
In Austin and Texas: Austin at -5.7 percent reflects a post-boom correction in a high-priced market. The Dallas-Fort Worth metro, by contrast, is not on the steepest-decline list — DFW's more measured appreciation cycle and population-driven demand provide more stability than the Austin market.
In the 223 gaining markets: Homeowners in Northeast and Midwest markets should not assume that the national price correction headline applies to them — their local market may be stronger than the aggregate data suggests.
77 of 300 major U.S. housing markets recorded year-over-year home price declines in May 2025 to May 2026. Florida's Gulf Coast dominates the decline list. — ResiClub Analytics, June 2026
The Bottom Line
26 percent of major housing markets are now seeing falling prices — concentrated in markets that overshot during the pandemic and are correcting back toward locally-supportable values. For homeowners in those declining markets, the carrying cost of waiting (taxes, insurance, HOA fees, mortgage interest) runs against the probability that prices recover in the near term.
Related: Asking Prices Post Record Annual Drop Nationally → · 1.2 Million Homeowners Underwater Nationally → · What Is a Fair Cash Offer? →
Sources: ResiClub Analytics — 77 Major Markets with Falling Prices · Fast Company — Housing Markets with Falling Prices