Despite high borrowing costs, home prices in major U.S. cities continued to climb in 2024 — except for a handful of metros in Texas and Florida, where prices bucked the trend and declined.
Out of the largest 50 metros, only four major cities recorded year-over-year price declines as of Nov. 2024, according to listings data from the online broker Redfin. Here's a look at which cities had price drops and how much they fell, based on the change in median home prices.
- Austin, Texas: -3.7%
- Tampa, Florida: -3.5%
- San Antonio, Texas: -3.0%
- Fort Lauderdale, Florida: -1.6%
With the steepest drop in home prices, Austin, Texas, has become a leading example of pandemic boomtowns facing a sharp reversal. After home prices soared to a peak of $667,000 in 2022, they have since dropped to $548,500, according to Redfin's latest data. While still higher than the national median of $429,971, the drop marks a significant shift from the city's pandemic-era growth.
From 2020 to 2022, Americans flocked to warmer climates and more affordable cities like Austin, driving up demand for housing in Texas and Florida. This surge in interest coincided with a construction boom, bringing housing supply back to pre-pandemic levels in both states.
Now, with migration slowing and new homes entering the market, major cities in Texas and Florida are seeing slower price growth compared to the national average. While some cities in these states posted price declines, others — such as Orlando and West Palm Beach in Florida, along with Fort Worth in Texas — recorded only modest gains of under 2%, far below the national average of 5.4%, according to Redfin.
Rising levels of "stale inventory" — homes sitting on the market for over 60 days — are weighing on prices. In November, more than 60% of listings in Austin, Fort Lauderdale and San Antonio remained unsold for two months or longer, among the highest shares in the country, according to Redfin.
Money Report
Florida's housing market faces other challenges as well. Natural disasters and rising construction costs are driving up insurance premiums, while surging HOA fees are also making homes increasingly unaffordable for buyers.
These metros stand in contrast to much of the country, where tight inventory is expected to push home prices higher.
"Home prices are likely to keep rising steadily throughout 2025 at a similar pace to this year," writes Redfin senior economist Sheharyar Bokhari in a recent analysis. "Elevated mortgage rates will cause many homeowners to hang onto their homes — and the low rates they have locked in. That means there will be enough buyers competing over a relatively low number of homes to keep prices ticking up consistently."
Want to make extra money outside of your day job? Sign up for CNBC's online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories.
Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life.
