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All the US Property Markets With Predicted 10%+ Price Declines by 2026

David Garner
David Garner
Published On: June 4th, 2025

 

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📉 12 U.S. Property Markets Where Prices Will Fall More Than 10% by 2026

Get ready for a potential shakeup in the U.S. housing market. According to Zillow’s latest data forecast, 12 metro areas across the country are expected to see home prices decline by more than 10% between March 2025 and March 2026. While the national market is forecast to drop modestly, these specific regions—primarily in Mississippi, Texas, Arkansas, Louisiana, and South Carolina—are facing significant downward pressure.

This may raise alarm bells for homeowners, but it could also signal opportunity for buyers and investors. Let’s break down the forecast, the causes, and what this all means for you.


🧮 A Changing National Outlook

Zillow’s revised national forecast shows a cooling market:

  • January 2025: +2.9% expected appreciation
  • February: +1.1%
  • March: +0.8%
  • Now: -1.7% (as of April 2025)

This isn’t just statistical noise. The consistent revisions suggest a broader market correction is underway.


📉 Markets Expected to Decline the Most by March 2026

The table below shows the top 12 U.S. metro areas forecasted to decline by more than 10%, according to Zillow’s data model:

Market State Projected Price Change (Mar 2025 – Mar 2026)
Greenville MS -14.6%
Pecos TX -12.7%
Cleveland MS -11.9%
Big Spring TX -11.4%
Alice TX -11.3%
Raymondville TX -11.2%
Helena AR -11.0%
Sweetwater TX -10.6%
Hobbs NM -10.5%
Opelousas LA -10.3%
Houma LA -10.1%
Bennettsville SC -10.0%

These markets are mostly smaller cities, often overlooked in national reporting but deeply affected by local economic conditions.


🧠 Why These Markets?

Several interconnected factors likely contribute to the steep projected price declines:

  • Economic Strain: Slower growth or industry-specific downturns may be reducing local housing demand.
  • Population Outflow: Migration patterns show some residents leaving rural or economically challenged areas.
  • Affordability Pressure: Despite being less expensive than major cities, affordability may still be strained for locals.
  • Oversupply: Overbuilding during the pandemic-era boom could now be catching up in markets with weaker demand.
  • Higher Interest Rates: Mortgage costs have risen significantly, particularly affecting lower-income or marginal buyers.
  • Remote Work Reversal: Some markets didn’t benefit much from the remote work boom and may now be losing population or demand.

🏠 What Should Homeowners Do?

If you own a property in one of these markets:

  • Don’t Panic: Most homeowners don’t need to sell immediately. Long-term trends still matter more.
  • Think Locally: Get real insights from local agents—not all neighbourhoods will be equally affected.
  • Stay Put and Improve: If you’re not planning to sell, use this time to improve your property’s value and comfort.

🔍 What About Buyers and Property Investors?

A price correction could create entry points for savvy buyers:

  • Do Your Homework: Understand why the local market is declining before making a move.
  • Evaluate Risks: Weigh falling prices against long-term rental demand and economic conditions.
  • Pre-Qualify First: Know your numbers before you shop in a potentially volatile market.
  • Conservative Underwriting: Make sure your deal cashflow based on current data, and plan for cost increases.
  • Focus on Property Management: Vet tenants thoroughly, and focus on high quality property management.
  • Create a Quality Product: Create the best possible product for the local rental market. Focus on high quality renovations and major capex items upfront to limit vacancies, repairs and capex.

👁 My Perspective: What This Really Means

Market corrections are normal. The key is to focus on fundamentals:

  • Real estate is hyper-local. National trends are useful, but local knowledge is essential.
  • Don’t follow the herd. Fear can create opportunity, and euphoria often leads to poor decisions.
  • Use data and expert advice. Lean on professionals who understand your specific goals and region.

US National Picture Still Stable

Despite these local declines, the national market isn’t crashing. A projected -1.7% dip is far from a bubble burst—it’s more of a modest rebalancing. Housing shortages, inflation-driven building costs, and demographic trends still support long-term value.

There has not been a 10-year period in history when US property prices have not increased. For investors, focus on conservative underwriting and plan to hold for the long-term. The real magic in real estate investing is that the asset pays for itself over time.

Focus on finding quality deals that cashflow, and let time do the heavy lifting for you!


💡 Final Thoughts

The housing market is adjusting. Some areas will feel it more than others. For those living in or investing in these 12 markets, this is a call to pay attention—but not to panic.

Be strategic. Be informed. And remember: opportunities are often found when others are uncertain.

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