The red-hot housing market? It’s Ice cold in some cities.
Whether it’s a post-pandemic correction or just too much hype, home prices in some metros are falling fast—and in a few cases, crashing.
From tech hubs to tourist towns, here’s where the bubble is deflating hardest in 2025.
Austin, TX
Austin’s housing market was the poster child for pandemic-era booms. Now? It’s down bad. Prices have plunged over 21% from their peak, making it the sharpest drop in the country. High inventory, stretched buyers, and a post-tech bust reality are pulling prices back to Earth.
Oakland, CA
Home values in Oakland have tanked nearly 20%. Rising crime, remote work, and a brutal Bay Area exodus have driven buyers out. Add soaring interest rates and you’ve got a market that’s gone from red-hot to radioactive.
New Orleans, LA
The Big Easy isn’t immune. Prices are down almost 17% from their highs. Insurance costs, flood risk, and an uneven economy are driving buyers away—and pushing sellers to slash prices just to get offers.
San Francisco, CA
It used to be one of the priciest markets in America. Now? A 15% drop from peak pricing. Tech layoffs and remote work have crushed demand, and the city’s sky-high cost of living isn’t helping its bounce-back chances.
Washington, DC
DC’s housing market hasn’t escaped the broader correction. Prices are down more than 10% since the highs. With remote work sticking around and affordability stretched, even the capital isn’t looking recession-proof.
Phoenix, AZ
Phoenix was a magnet for pandemic buyers, but the sizzle is gone. Prices have dropped more than 8%, with nearly a third of listings now seeing price cuts. Inventory is up, demand is cooling, and sellers are blinking first.
Portland, OR
Portland’s home prices have slid over 8% from their peak. Slower job growth and rising crime perception have made it a less appealing bet. Demand’s faded, and the correction is still underway.
Denver, CO
Denver’s housing market is deflating—down 8.1% from its top. Buyers are balking at high prices and higher rates. That Rocky Mountain high? It’s looking more like a hangover.
Fort Worth, TX
North Texas is cooling fast. Fort Worth home prices have slipped 7.3% below peak, and sellers are cutting prices aggressively to compete with new construction popping up all over the metro area.
San Antonio, TX
San Antonio rounds out the list with a 7.1% dip. The city saw big pandemic growth, but the math isn’t adding up for buyers anymore. Demand is drying up, and sellers are starting to panic.
