11 big cities where home prices are falling the most (2024)

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Real Estate

Alcynna Lloyd

2024-06-27T09:37:02Z

11 big cities where home prices are falling the most (1)

The median home price in May was $442,500, up from $441,000 in 2023, according to Realtor.com.
Still, several big US cities saw home prices drop in May compared to the same time period in 2023.
Miami saw the biggest decline — home prices fell by 11.2% year-over-year to $439,000.

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The adage "what goes up must come down" is especially true in the real-estate market, where a slowdown in homebuying has led to price declines in cities across the country.

The median sales price for the entire US actually went up a bit — to $442,500 — in May from the previous May, which means buying a home hasn't become significantly more affordable for the typical American since last year.

However, with would-be buyers holding back, leading to less competition for homes, home prices in several major US metros have dropped by thousands of dollars, according to a new report from Realtor.com.

It comes down to consistently high mortgage rates and an overall increase in home financing costs, which have sidelined many prospective buyers.

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"Higher mortgage rates compared with last May increased the monthly cost of financing 80% of the median home by roughly $158 compared with a year ago," said Danielle Hale, Redfin's chief economist. "This increased the required household income to purchase the median-priced home by $6,400, to $119,700, after also accounting for the cost of tax and insurance."

While this locks many Americans out of the market, it's good news for those who can still afford to buy a home in their area.

In pandemic boomtowns like Miami and Austin, which drew thousands of homebuyers looking for relatively affordable homes and more space, a pullback in demand has caused homes to stay on the market longer, prompting many sellers to reduce their prices.

In May, home prices in Miami and Austin dropped by 11.2% and 3.1%, respectively, compared to the same period in 2023, according to the report.

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Realtor.com analyzed data from 50 of the largest US metros to calculate which ones saw the largest home-price declines in May.

Below are the 11 big cities with the largest price drops.

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