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National home prices rose 0.01% year over year from September 2024 to September 2025, according to the Zillow Home Value Index reading published on October 16—decelerated from the 2.4% year-over-year rate from September 2023 to September 2024.
This year, the number of major metro-area housing markets seeing year-over-year declines has climbed.
—> 31 of the nation’s 300 largest housing markets (10% of markets) had a falling year-over-year reading from January 2024 to January 2025.
—> 42 of the nation’s 300 largest housing markets (14%) had a falling year-over-year reading from February 2024 to February 2025.
—> 60 of the nation’s 300 largest housing markets (20%) had a falling year-over-year reading from March 2024 to March 2025.
—> 80 of the nation’s 300 largest housing markets (27%) had a falling year-over-year reading from April 2024 to April 2025.
—> 96 of the nation’s 300 largest housing markets (32%) had a falling year-over-year reading from May 2024 to May 2025.
—> 110 of the nation’s 300 largest housing markets (36%) had a falling year-over-year reading from June 2024 to June 2025.
—> 105 of the nation’s 300 largest housing markets (36%) had a falling year-over-year reading from July 2024 to July 2025.
—> 109 of the nation’s 300 largest housing markets (35%) had a falling year-over-year reading from August 2024 to August 2025.
—> 105 of the nation’s 300 largest housing markets (35%) had a falling year-over-year reading from September 2024 to September 2025.
Earlier this year, an increasing number of housing markets slipped into year-over-year price declines as the supply-demand balance gradually tilted more toward buyers. But in recent months, the list of declining markets has begun to stabilize as inventory growth has stalled.
Home prices are still climbing in many regions where active inventory remains well below pre-pandemic 2019 levels, such as pockets of the Northeast and Midwest. In contrast, some pockets in states like Arizona, Texas, Florida, and Colorado—where active inventory exceeds pre-pandemic 2019 levels—are seeing modest home price pullbacks.
Many of the housing markets seeing the most softness, where homebuyers have gained the most leverage, are primarily located in Sunbelt regions, particularly the Gulf Coast and Mountain West.
Many of these areas saw major price surges during the Pandemic Housing Boom, with home price growth outpacing local income levels. As pandemic-driven domestic migration slowed and mortgage rates rose, markets like Tampa and Austin faced challenges, relying on local income levels to support frothy home prices.
This softening trend is further compounded by an abundance of new-home supply in the Sunbelt. Builders are often willing to lower prices or offer affordability incentives to maintain sales, which also has a cooling effect on the resale market. Some buyers who would have previously considered existing homes are now opting for new homes with more favorable homebuilder deals.
Of course, while 105 of the nation’s 300 largest metro-area housing markets are seeing year-over-year home price declines, another 195 are still seeing year-over-year home price increases.
Where are home prices still up on a year-over-year basis? See the map below.
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