Home Prices Falling Fastest in These U.S. Metros

A new map shows where home prices are declining the most amid rising mortgage rates and economic uncertainty.

Published on Feb. 21, 2026

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Home prices across the U.S. continued to rise in January, but some major metro areas are seeing significant declines. According to data from Redfin, home prices fell month-over-month in 14 of the 50 largest U.S. metros, with the biggest drops in Warren, Michigan; San Antonio, Texas; and Minneapolis. On a year-over-year basis, prices fell the most in Austin, Texas; San Antonio; and Jacksonville, Florida. Experts say the regional differences are due to varying inventory levels, with buyers in markets with more supply able to negotiate better deals.

Why it matters

The diverging home price trends across the country highlight the uneven impact of rising mortgage rates and economic uncertainty on the U.S. housing market. While some historically hot markets like Austin are experiencing brutal price corrections, traditionally stable metros in the Northeast and Midwest continue to see solid price appreciation due to limited inventory and steady demand.

The details

According to the Redfin data, home prices fell month-over-month in 14 of the 50 largest U.S. metro areas in January. The biggest declines were seen in Warren, Michigan (-1.5%), San Antonio, Texas (-1%), Minneapolis (-0.8%), Los Angeles (-0.72%), and Columbus, Ohio (-0.44%). On a year-over-year basis, prices fell the most in Austin, Texas (-4.2%), San Antonio (-3.8%), and Jacksonville, Florida (-3%). In contrast, the biggest month-over-month price increases were in Philadelphia (+2.6%), Providence, Rhode Island (+2.5%), and San Francisco (+2.1%). The year-over-year price gains were led by San Francisco (+14.3%), New York City (+11.1%), and Milwaukee (+9.2%).

  • Home prices fell month-over-month in 14 of the 50 largest U.S. metros in January 2026.
  • Compared to January 2025, home prices had fallen in 16 metros as of January 2026.

The players

Redfin

A real estate brokerage firm that uses the repeat-sales pricing method to calculate seasonally adjusted changes in single-family home prices.

Anthony Smith

A senior economist at Realtor.com who spoke about the regional differences in the U.S. housing market in an interview with Newsweek in December.

Chen Zhao

Redfin's head of economics research, who commented on how slightly lower borrowing costs are helping buyers get off the sidelines of the market.

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What they’re saying

“Mortgage rates have dipped in recent weeks, which has boosted purchasing power for house hunters, but a lot of folks are still waiting to buy until rates drop further.”

— Chen Zhao, Redfin's head of economics research (Redfin)

“These markets 'continue to benefit from tighter resale supply and more stable underlying demand.' 'Lower rates of price reductions and limited inventory turnover are helping support firmer appreciation in these parts of the country.'”

— Anthony Smith, senior economist at Realtor.com (Newsweek)

What’s next

As of November 2025, the latest data available, in 18 out of the 50 largest U.S. metropolitan areas buyers had the upper hand over sellers thanks to growing inventory levels.

The takeaway

The diverging home price trends across the country highlight the uneven impact of rising mortgage rates and economic uncertainty on the U.S. housing market. While some historically hot markets like Austin are experiencing brutal price corrections, traditionally stable metros in the Northeast and Midwest continue to see solid price appreciation due to limited inventory and steady demand.