Based on our analysis of the Zillow Home Value Index, U.S. home prices are up just +0.4% year-over-year between January 2025 and January 2026. That marks a deceleration from the +2.1% growth rate a year earlier—though national price growth has recently stabilized, ticking a tad higher from a low of -0.01% in August 2025.
In the first half of 2025, the number of major metro area housing markets seeing year-over-year declines climbed. That count has since stopped ticking up.
- 31 of the nation’s 300 largest housing markets (i.e., 10% of markets) had a falling year-over-year reading in the Jan. 2024 to Jan. 2025 window.
- 42 of the nation’s 300 largest housing markets (i.e., 14% of markets) had a falling year-over-year reading in the Feb. 2024 to Feb. 2025 window.
- 60 of the nation’s 300 largest housing markets (i.e., 20% of markets) had a falling year-over-year reading in the March 2024 to March 2025 window.
- 80 of the nation’s 300 largest housing markets (i.e., 27% of markets) had a falling year-over-year reading in the April 2024 to April 2025 window.
- 96 of the nation’s 300 largest housing markets (i.e., 32% of markets) had a falling year-over-year reading in the May 2024 to May 2025 window.
- 110 of the nation’s 300 largest housing markets (i.e., 36% of markets) had a falling year-over-year reading in the June 2024 to June 2025 window.
- 105 of the nation’s 300 largest housing markets (i.e., 36% of markets) had a falling year-over-year reading in the July 2024 to July 2025 window.
- 109 of the nation’s 300 largest housing markets (i.e., 35% of markets) had a falling year-over-year reading in the Aug. 2024 to Aug. 2025 window.
- 105 of the nation’s 300 largest housing markets (i.e., 35% of markets) had a falling year-over-year reading in the Sept. 2024 to Sept. 2025 window.
- 105 of the nation’s 300 largest housing markets (i.e., 35% of markets) had a falling year-over-year reading in the Oct. 2024 to Oct. 2025 window.
- 98 of the nation’s 300 largest housing markets (i.e., 33% of markets) had a falling year-over-year reading in the Nov. 2024 to Nov. 2025 window.
- 106 of the nation’s 300 largest housing markets (i.e., 35% of markets) had a falling year-over-year reading in the Dec. 2024 to Dec. 2025 window.
- 100 of the nation’s 300 largest housing markets (i.e., 33% of markets) had a falling year-over-year reading in the Jan. 2025 to Jan. 2026 window.
- 99 of the nation’s 300 largest housing markets (i.e., 33% of markets) had a falling year-over-year reading in the Feb. 2025 to Feb. 2026 window.
As you can see above, in the first half of 2025, there was a notable increase in the number of housing markets slipping into year-over-year price declines as the supply–demand equilibrium (as measured by inventory) shifted more quickly toward homebuyers. Over the past seven months, however, the list of declining markets has begun to stabilize and inventory growth has also decelerated.
Home prices are still climbing a little year-over-year 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 Texas, Florida, and Colorado—where active inventory exceeds pre-pandemic 2019 levels by a solid clip—are seeing modest home price pullbacks or flat pricing.
Click here for an interactive version of the chart below
Many of the housing markets seeing the most softness, where homebuyers have gained the most leverage, are primarily located in Sun Belt regions, particularly the Gulf Coast and Mountain West.
