Cities Where Housing Prices are Decreasing Post-Pandemic
The COVID-19 pandemic brought about a significant shift in migration patterns, with many Americans leaving big cities in favor of smaller, more affordable locations where they could work remotely. These so-called “Zoom towns” experienced a surge in population and housing prices during the height of the pandemic. However, a few years post-pandemic, some of these once-booming cities are now seeing a decline in housing prices.
According to a recent report by Moody’s Analytics economist Matthew Walsh, the national housing market remains overvalued, with prices exceeding their estimated fundamental value by more than 12% in February. This overvaluation has decreased since the spring of 2021, with house prices decreasing in 17 states in February. The strongest performance has been seen in the Midwest, where house prices are more affordable.
Here are some of the cities where housing prices are currently decreasing:
1. Miami, Florida: The median listing home price in Miami is $635,000, down -2.3% year-over-year.
2. Provo, Utah: The projected annualized home price appreciation through August 2026 is -6.11%, with a median listing home price of $495,000.
3. Lake Havasu City, Arizona: The projected annualized home price appreciation through August 2026 is -6.15%, despite a current median listing home price of $550,000.
4. Oklahoma City, Oklahoma: The median listing home price in Oklahoma City is $299,000, trending down -6% year-over-year.
5. San Antonio, Texas: The median listing home price in San Antonio is $300,000.
6. San Jose, California: The median listing home price in San Jose is a staggering $1.3 million.
7. Pocatello, Idaho: The median listing home price in Pocatello is $377,400, trending down -3% year-over-year. The projected annualized home price appreciation through August 2026 is -7.85%.
As the housing market continues to evolve post-pandemic, these cities are experiencing a shift in pricing trends, with some seeing a decline in housing prices despite their previous popularity among remote workers.
