Home values are rising in half the country, falling in the other

Aug 18 2025 13:00 BST

Buyers gain negotiating leverage, but high costs keep many on the sidelines

Buyers continue to gain leverage. Now, 27 major metros are in buyers' favor or neutral, up from 24 last month.
Listings are lingering: The median for-sale home has been listed for 60 days, the longest of any July in Zillow data.
Sellers cut prices on 27.4% of listings, a record high in Zillow data that stretches through 2018.

SEATTLE , Aug. 18, 2025 /PRNewswire/ -- Home values fell in half of the nation's largest markets over the past year, according to the latest market report¹ from Zillow®. Buyers are gaining leverage across the country, with more markets tipping toward balance, and sellers cutting prices at record rates to compete. But while buyers are making gains in the battle of negotiating power, they're losing the war on affordability.

Home values rose over last year in 25 major markets, mostly in the Midwest and Northeast. Demand is high — especially in affordable areas — but building restrictions have put a damper on new and higher-density projects. Sellers have few options to move up to, and existing inventory is still below pre-pandemic averages in many metros.

Meanwhile, home values have fallen year over year in 25 markets — most of them situated in the South or West — restoring a tiny chunk of affordability lost in the early pandemic run-up in prices. In the South, builders have kept up with demand better, easing price pressure and giving homeowners options to move into. Buyers are likely still running into affordability walls in expensive western coastal metros like San Francisco and San Diego.

"Perhaps more than ever, whether it's a good time to buy depends on where you live," said Kara Ng, senior economist at Zillow. "A defining trait of this market is that buyers are gaining leverage that most of them can't use, because cost barriers are too high. Buyers forced to the sidelines means less competition for those who can still afford it. Affordability is gradually improving where builders have been able to keep up with demand, showing why continuing to build is so critical. It's not just about giving buyers power, it's enabling them to use it."

Price-growth divide linked to recent success of builders
Home value appreciation is nearly flat at the national average, rising just 0.2% over the past year. Lower interest rates and low price growth have slightly improved affordability; monthly mortgage costs² are down $19 over the past year. But that mortgage payment is still nearly $1,000 more per month than it was before the pandemic.

Among the 50 largest U.S. metros, home values rose the most in the past year in Cleveland (4.7%), Hartford (4.5%), Louisville (3.9%), Detroit (3.8%) and Buffalo (3.7%). However, even these gains are modest compared to the rampant double-digit growth seen three or four years ago.

Florida and Texas, both former hot spots for housing demand and skyrocketing prices, are home to the major metros seeing home values fall the fastest. Annual declines in typical home values are largest in Tampa (-6.2%), Austin (-6%), Miami (-4.6%), Orlando (-4.3%) and Dallas (-3.9%).

Metros where price corrections are steepest are among those with the largest increase in inventory compared to before the pandemic. All of these metros except Miami rank among the top 10 for home building permits from 2020 to 2024. When demand for homes surged, builders were able to respond fastest in areas with fewer land-use restrictions. That gave buyers more options and sellers more homes to move into, freeing up existing supply.

New construction is slowing the growth of a nationwide housing deficit, but a gap of 4.7 million units persists. The underlying demand for homes is out there — at lower price levels.

Price cuts reach record high
Sellers cut prices on 27.4% of listings in July, the highest share since Zillow began tracking this metric in 2018. Cuts are more common in the South and the Mountain region, and are less widespread in markets more favorable to sellers in the Northeast and on the West Coast.

Zillow's market heat index shows competition among buyers continues to decline nationwide, reaching the lowest point for any July since at least 2018. Now, 27 major markets are either balanced or in the buyer's favor — three more than last month, and nine more than last July.

Listings linger unless priced right
Homes are taking longer to sell than in recent summers, and the gap between attractive listings that sell and others that linger is growing. Listings that sold in July did so in 24 days, six days slower than last year but just one day longer than the pre-pandemic average for July. However, the median lifespan of all listings on Zillow is 60 days, four more than the pre-pandemic average. The gap between those two figures is the largest for any July in Zillow data, which began being collected in 2018.

Sellers will need to make their listing irresistible to shoppers to succeed in this fast-changing market. Today's buyers shop online first. Features such as interactive floor plans and 3D tours help them get a better feel for the home before deciding to see it in person.

Metro Area*	Zillow Home Value Index (ZHVI)	ZHVI Year over Year (YoY)	Share of Listings With a Price Cut	Market Favors (Zillow Market Heat Index)	Inventory Change Since Before the Pandemic	Median Days to Pending	Median Age of Inventory
United States	$367,965	0.2 %	27.4 %	Neutral	-19 %	24	60
New York, NY	$713,066	3.7 %	15.9 %	Neutral	-49 %	31	56
Los Angeles, CA	$959,206	-0.8 %	25.1 %	Seller	-12 %	26	51
Chicago, IL	$346,252	3.5 %	27.7 %	Seller	-53 %	11	34
Dallas, TX	$369,096	-3.9 %	36.8 %	Neutral	11 %	35	63
Houston, TX	$310,886	-1.9 %	33.0 %	Neutral	12 %	38	71
Washington, DC	$584,722	1.2 %	28.8 %	Seller	-24 %	16	39
Philadelphia, PA	$386,721	3.6 %	24.4 %	Seller	-43 %	12	35
Miami, FL	$472,814	-4.6 %	21.6 %	Buyer	7 %	62	109
Atlanta, GA	$384,607	-3.1 %	33.3 %	Buyer	4 %	40	65
Boston, MA	$731,359	1.3 %	22.1 %	Seller	-30 %	13	36
Phoenix, AZ	$448,513	-3.5 %	33.5 %	Neutral	-1 %	44	70
San Francisco, CA	$1,127,650	-3.8 %	22.0 %	Strong Seller	10 %	26	45
Riverside, CA	$585,417	-2.1 %	25.6 %	Seller	-17 %	34	69
Detroit, MI	$268,642	3.8 %	26.8 %	Neutral	-32 %	11	34
Seattle, WA	$751,156	-0.8 %	30.5 %	Neutral	-5 %	19	41
Minneapolis, MN	$391,089	2.2 %	27.0 %	Seller	-30 %	23	34
San Diego, CA	$925,599	-2.6 %	31.0 %	Seller	-19 %	27	49
Tampa, FL	$361,115	-6.2 %	33.0 %	Buyer	29 %	43	80
Denver, CO	$580,664	-2.9 %	38.2 %	Neutral	23 %	32	58
Baltimore, MD	$403,552	2.3 %	29.2 %	Seller	-40 %	13	35
St. Louis, MO	$271,010	2.3 %	26.1 %	Seller	-45 %	7	31
Orlando, FL	$389,304	-4.3 %	30.9 %	Neutral	32 %	42	81
Charlotte, NC	$388,523	-0.9 %	31.0 %	Neutral	12 %	32	56
San Antonio, TX	$283,286	-3.1 %	32.6 %	Neutral	27 %	43	80
Portland, OR	$553,771	-0.8 %	32.6 %	Neutral	-12 %	25	55
Sacramento, CA	$582,942	-2.2 %	30.6 %	Seller	-15 %	25	49
Pittsburgh, PA	$232,771	1.8 %	28.7 %	Neutral	-37 %	13	44
Cincinnati, OH	$302,039	2.8 %	31.5 %	Seller	-29 %	9	28
Austin, TX	$437,456	-6.0 %	32.4 %	Buyer	57 %	58	76
Las Vegas, NV	$436,129	-0.03 %	30.4 %	Neutral	-1 %	35	70
Kansas City, MO	$321,289	2.3 %	30.8 %	Seller	-37 %	11	34
Columbus, OH	$330,779	1.5 %	34.4 %	Neutral	-18 %	9	32
Indianapolis, IN	$292,165	1.8 %	36.0 %	Neutral	-9 %	15	38
Cleveland, OH	$248,038	4.7 %	25.3 %	Seller	-52 %	8	26
San Jose, CA	$1,582,065	-1.6 %	21.7 %	Seller	-12 %	21	38
Nashville, TN	$455,758	-0.2 %	35.9 %	Neutral	7 %	29	60
Virginia Beach, VA	$365,519	2.0 %	26.0 %	Seller	-40 %	27	40
Providence, RI	$511,889	2.9 %	22.4 %	Strong Seller	-54 %	14	31
Jacksonville, FL	$352,549	-3.4 %	32.3 %	Buyer	22 %	60	83
Milwaukee, WI	$376,538	3.2 %	18.0 %	Strong Seller	-32 %	18	34
Oklahoma City, OK	$242,586	1.0 %	30.6 %	Neutral	-3 %	24	55
Raleigh, NC	$444,585	-2.2 %	37.5 %	Neutral	17 %	27	48
Memphis, TN	$244,072	-0.7 %	29.7 %	Buyer	6 %	26	59
Richmond, VA	$388,023	1.3 %	27.8 %	Seller	-35 %	11	28
Louisville, KY	$271,943	3.9 %	31.3 %	Neutral	-21 %	10	34
New Orleans, LA	$256,244	-1.0 %	25.6 %	Buyer	48 %	47	93
Salt Lake City, UT	$560,958	1.7 %	36.6 %	Neutral	2 %	27	49
Hartford, CT	$393,092	4.5 %	18.6 %	Strong Seller	-66 %	8	15
Buffalo, NY	$283,377	3.7 %	20.6 %	Strong Seller	-40 %	11	17
Birmingham, AL	$257,127	0.1 %	25.4 %	Neutral	-14 %	22	56

*Table ordered by market size

¹The Zillow market report is a monthly overview of the national and local real estate markets. The report is compiled by Zillow Research. For more information, visit zillow.com/research.

²The monthly cost of a mortgage payment when using a 20% down payment to purchase a home priced at the Zillow Home Value Index, using the monthly average mortgage rate for a 30-year fixed rate loan.

About Zillow Group

Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

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Home values are rising in half the country, falling in the other