54 Housing Markets Saw Falling Home Prices Year-Over-Year

Nationally aggregated U.S. home prices increased by 1.3% year-over-year between August 2025 and August 2026, according to an analysis of the Zillow Home Value Index by Lance Lambert's ResiClub. This national year-over-year growth rate is described as "soft" but represents a slight increase from the previous year, when the national year-over-year home price shift rate was -0.01% at the end of August 2025. The data highlights a significant shift in local market performance, with 54 of the nation's 300 largest housing markets, representing 18% of these markets, experiencing a year-over-year decline in home prices during the August 2025 to August 2026 period. This figure is a notable decrease from the preceding year, when 109 markets (36%) saw falling prices, and also lower than the 39 markets (13%) that experienced declines between August 2023 and August 2024. The trend of increasing year-over-year price declines in housing markets was particularly pronounced in much of 2024 and the first half of 2025, a period characterized by a notable rise in markets slipping into negative price growth. Prior to this recent surge, the number of markets with falling prices was considerably lower. For instance, between August 2022 and August 2023, 78 of the 300 largest markets (26%) recorded year-over-year price decreases. The preceding years showed even fewer markets in decline: 12 markets (4%) between August 2018 and August 2019, 6 markets (2%) between August 2017 and August 2018, 2 markets (<1%) between August 2019 and August 2020, and 2 markets (<1%) between August 2021 and August 2022. Notably, no markets (0%) experienced year-over-year price declines between August 2020 and August 2021, indicating a period of widespread home price appreciation. The analysis suggests that while the national market continues to see modest growth, a significant portion of individual large metropolitan areas have experienced a reversal in home price trends. The data from the Zillow Home Value Index provides a granular view of these localized market dynamics, contrasting with the broader national figures. The ResiClub newsletter offers further insights into housing market trends.