1. Coeur d’Alene, Idaho
This scenic resort town became an unlikely pandemic housing boomtown, with home prices doubling between 2020 and mid-2022. Buyers came from across the country, drawn by the lakes, mountains, and small-town charm. But now prices have fallen more than 15%, one of the steepest drops for any small market, according to Brandon Kochkodin of Forbes. And inventory is piling up quickly.
Local incomes couldn’t support the price surge, and out-of-towners have largely stopped buying. Many who purchased at the peak are now stuck with negative equity. It’s a stark reminder that not every boomtown stays booming. Coeur d’Alene’s rapid rise turned out to be a mirage for many hopeful buyers.
2. Austin, Texas
Austin got red-hot during the pandemic thanks to an influx of tech companies and transplants, especially from California. Home prices ballooned by more than 60% from early 2020 to mid-2022. But once mortgage rates spiked and the tech sector began layoffs, the air came out fast, according to Giulia Carbonaro of Newsweek. As of late 2023, Austin’s home prices had fallen by nearly 14% from their peak, one of the sharpest drops in the nation.
Inventory more than doubled year over year, giving buyers more leverage for the first time in years. Sellers who overpaid or overbuilt are feeling the pain. Austin’s fundamentals are still strong long term, but short-term corrections are making headlines. Investors who jumped in late are now facing tough choices.
3. Phoenix, Arizona
Phoenix saw its home prices surge by nearly 60% during the COVID housing frenzy, as buyers from California and the Midwest looked for cheaper, sunnier options. Low interest rates and limited supply added rocket fuel to the market. But when rates jumped and affordability tanked, the decline came quickly, Giulia Carbonaro of Newsweek explains. By the end of 2023, prices had dropped about 8–10%, with more adjustments underway.
Phoenix also faces the challenge of rising insurance costs and water supply concerns, which are starting to weigh on buyer sentiment. Flippers and investors who rushed in during the boom are retreating. Many sellers have been forced to cut asking prices multiple times. It’s a classic case of too far, too fast.
4. Sacramento, California
Sacramento became a popular escape hatch for Bay Area residents during the pandemic, pushing prices up over 45% in just two years. But now that return-to-office mandates are creeping back in and mortgage rates are pinching, the demand wave has receded, according to Kurtis Ming and Kevin Wing of CBS News. Home prices in Sacramento have dropped about 9% since peaking in 2022. Sales volume has also fallen steeply, showing buyer fatigue.
Inventory is creeping back up, and homes are sitting longer. Sellers who hoped to ride the Bay Area ripple effect are getting a wake-up call. Many of the remote workers who moved in are now facing decisions about whether to stay or go. It’s no longer the no-brainer alternative it once was.
5. Salt Lake City, Utah
Salt Lake City was another rising star during the early pandemic years, with home values rising nearly 50% from 2020 through 2022. It attracted buyers looking for a lower cost of living and outdoor lifestyle, particularly from California. But as affordability eroded and rates increased, the market cooled fast. By early 2024, prices had slipped about 10% from their highs.
Builders also overextended, leading to an inventory glut in some areas. While job growth is still healthy, it’s not enough to absorb all the new listings. Many homes are now lingering on the market for months. What looked like a sure bet has become a cautionary tale.
6. Las Vegas, Nevada
Las Vegas saw one of the sharpest upswings in the country, with prices jumping 50% between mid-2020 and mid-2022. Investors poured in, second-home buyers snapped up listings, and demand outpaced supply by a mile. But the market’s volatility made it especially vulnerable to rising interest rates. Prices have since dropped about 8–11%, and the correction may not be done yet.
Foreclosures are also ticking up again—something we haven’t seen in a while. The city’s economy, tied closely to tourism and hospitality, makes it extra sensitive to macro shifts. Some buyers who bought at the top are trying to offload with steep losses. It’s a deja vu moment for a city still haunted by the 2008 crash.
7. Nashville, Tennessee
Nashville became a pandemic boomtown thanks to its low taxes, country charm, and business-friendly appeal. Home prices surged over 45% from early 2020 to mid-2022. But in 2023, price growth slowed dramatically, and the city saw declines of around 7–9%. Inventory shot up as new construction outpaced demand.
With mortgage rates higher, the appeal of buying into Nashville has dimmed for many would-be newcomers. The market is now seeing price cuts become the norm rather than the exception. Sellers are realizing the frenzy has passed. And the days of 20-offer bidding wars are over.
8. Denver, Colorado
Denver’s housing market rose quickly on the back of strong job growth and pandemic-era migration. From early 2020 to 2022, home prices increased more than 40%. But since then, high interest rates and inflation have cooled the buyer pool. Prices in 2023 dropped by around 6–8%, and listings are lingering longer.
Denver also faces affordability issues, with incomes failing to keep up with housing costs. Many local buyers have been priced out or are waiting on the sidelines. Builders have pulled back slightly, but the inventory wave from earlier projects is still washing ashore. The city’s market is resetting in real time.
9. Tampa, Florida
Tampa exploded in popularity during the pandemic, fueled by retirees, remote workers, and a flood of out-of-state cash buyers. Prices spiked by over 60% in just two years—making it one of the hottest markets in the country. But now, home prices are down around 8% from the peak, and monthly price declines have become routine. The party, it seems, is over.
The area is also grappling with skyrocketing homeowners insurance and climate-related concerns, especially after recent hurricanes. These added costs are eating into affordability fast. Investors who bought with the hope of big Airbnb returns are also pulling back. Tampa is learning the hard way that demand can be fleeting.
10. Raleigh, North Carolina
Raleigh had all the right ingredients for a boom: tech jobs, affordability (compared to the coasts), and a surge of newcomers. Prices climbed roughly 45% between 2020 and 2022. But by mid-2023, price growth slowed sharply, and by early 2024, values were down about 6–7%. The market has shifted into neutral—or even reverse.
Many buyers who moved in recently are now finding themselves with homes worth less than they paid. Price reductions are common, especially in newer developments. As inventory builds and rates stay elevated, competition has fizzled. It’s still a desirable city—but now more on buyers’ terms.
11. San Jose, California
San Jose, the heart of Silicon Valley, saw prices spike early and fast during the pandemic, with a nearly 30% jump in under two years. But the tech slowdown hit hard in 2023, and housing took a hit. Median prices dropped over 12% in the span of 12 months. The combination of sky-high costs and layoffs created a perfect storm.
Many high-income buyers who propped up the market have pulled back or left altogether. Homes that once sold in days are now sitting for weeks. Even price cuts of $200K aren’t uncommon. It’s a dramatic shift for one of the nation’s most expensive zip codes.
12. Seattle, Washington
Seattle was another tech-fueled rocket ship, with home prices rising nearly 40% from early 2020 to 2022. But as interest rates rose and tech companies tightened belts, demand slipped fast. By late 2023, home prices had fallen roughly 10–12% from their highs. That’s a big move for such a high-priced market.
Office return mandates and layoffs from giants like Amazon and Meta haven’t helped. Many would-be buyers are waiting it out or looking elsewhere. Meanwhile, sellers are adjusting expectations after years of easy gains. It’s a whole new ballgame in the Emerald City.
13. Boise, Idaho
Boise was one of the darlings of the pandemic housing boom, with home prices soaring over 50% between mid-2020 and mid-2022. Remote work lured tech workers from California and Seattle, pushing demand through the roof. The city became one of the most overvalued housing markets in the country, according to Moody’s Analytics. But that rapid rise set it up for a steep fall—prices dropped around 10–12% in 2023 and are still correcting.
Many buyers who rushed in are now underwater on their mortgages. Inventory has started climbing, and sellers are slashing prices to attract interest. With affordability stretched and population growth slowing, the market has lost momentum. It’s a sobering reversal for a city that once looked unstoppable.
