Split Market: Why Home Prices Are Rising in Some Cities but Falling in Others

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.

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June Housing Trends Show More Listings, But Sellers Aren’t Backing Down

Buyers Are Getting the Edge—but Sellers Aren’t Giving In Just Yet

Buyers Are Getting the Edge—but Sellers Aren’t Giving In Just Yet

According to the Realtor.com June 2025 Monthly Housing Trends Report, buyers have more to look at this summer than they’ve had in years. Active inventory is up 28.9% from a year ago, marking the 20th straight month of gains and the second month in a row with over 1 million listings on the market. The report calls this a “new post-pandemic high”—but inventory is still 12.9% below pre-COVID levels, so it’s not exactly a buyer’s market yet.

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Home Prices Hit Historic High—Why 78% of America’s Counties Are Now Unaffordable

Housing Unaffordable

When it comes to housing affordability, location isn’t just important, it’s crucial. ATTOM Data Solutions’ latest U.S. Home Affordability Report reveals that in the second quarter of 2025, homeownership expenses were unaffordable for typical residents in 77.9% of counties across the country. Nationally, the median home price rose to a historic high of $369,000, requiring average earners to dedicate 33.7% of their income, well above the recommended maximum of 28%,towards housing expenses.

This increasing burden is especially pronounced in populous counties such as Los Angeles County, CA; Cook County, IL (Chicago); and Maricopa County, AZ (Phoenix), where affordability has sharply declined. The report highlights how wages have stagnated compared to rapidly rising home prices: since early 2020, the median home price in the U.S. increased by 55.7%, while average wages rose by just 26.6%.

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