Why Home Prices Are Rising in Some Cities but Dropping in Others
Depending on where you live, the housing market might feel hot, cold, or somewhere in between—and that’s not your imagination. According to Zillow’s latest data, home values are now rising in about half of the country’s major metros and falling in the other half. What’s behind this split? Mostly, it’s a mix of affordability, supply, and the ability—or inability—to build.
In areas like Cleveland, Hartford, and Detroit, home values are still climbing modestly. Buyers want in, inventory’s tight, and zoning laws often slow down new construction. In other words, demand is running ahead of supply, and prices are inching upward as a result. On the flip side, former boomtowns like Tampa, Austin, and Miami are seeing home prices fall. Those areas saw massive run-ups in value during the pandemic. Now, with affordability stretched and new construction adding to inventory, sellers are finding they need to cut prices to move homes.
Nationally, values are more or less flat—up just 0.2% from last year—but sellers are clearly feeling the pressure. A record 27.4% of listings had a price cut in July, and the median home sat on the market for 60 days, the slowest pace for a July since Zillow started tracking this in 2018. Still, homes that are priced right are moving relatively quickly, typically going under contract in just 24 days. So while buyers have more leverage than they’ve had in recent years, sellers who stay ahead of the market with smart pricing are still getting deals done.
Zillow’s data shows that affordability is slowly improving in the places where builders were able to ramp up. The problem? Most of the country still has a serious shortage of homes. National inventory is up from last year but remains nearly 20% below pre-pandemic levels. Until that gap closes, we’re likely to keep seeing this split market—half pushing forward, half correcting, and everyone trying to figure out where the middle is.