15 housing markets with the biggest home price declines since the pandemic boom ended

"Federal Reserve researchers estimate "new construction would have had to increase by roughly 300% to absorb the pandemic-era surge in demand." Unlike housing demand, housing stock isn't as elastic and can't quickly ramp up. As a result, the heightened demand drained the market of active inventory and caused home prices to overheat, with U.S. home prices in June 2022 sitting at a staggering 43.2% above March 2020 levels."

"The run-up was even greater in some metro markets, including Naples, Florida (+73%); Austin, Texas (+73%); Punta Gorda, Florida (+71%); Cape Coral-Fort Myers, Florida (+70%); and North Port-Bradenton-Sarasota, Florida (+69%). Not long after mortgage rates spiked in 2022, the pandemic housing boom fizzled out."

"Since June 2022, the nationally aggregated housing market has been going through a period of recalibration-with U.S. home prices in March 2026 up just 2.2% above June 2022 levels, while weekly U.S. worker earnings during that same window jumped 14.7%. However, some markets' so-called recalibration window has gone further, and they've passed through a home price correction."

"Among the nation's 300 largest metro-area housing markets, these 15 markets have home prices this spring at least 10% below their local 2022 peak, according to ResiClub 's analysis of the Zillow Home Value Index: Austin-Round Rock-Georgetown, TX → -27.8%; Punta Gorda, FL → -25.4%; Cape Coral-Fort Myers, FL → -18.9%; North Port-Sarasota-Bradenton, FL → -17.5%; New Orleans-Metairie, LA → -13.8%."

Ultralow interest rates, stimulus, and remote work drove a rapid surge in housing demand during the pandemic. Federal Reserve researchers estimated that new construction would have needed to rise by roughly 300% to absorb the demand. Housing stock could not adjust quickly, so active inventory fell and home prices overheated. U.S. home prices in June 2022 were 43.2% above March 2020 levels, with larger run-ups in several metros such as Naples, Austin, and multiple Florida markets. After mortgage rates spiked in 2022, the boom ended and prices began recalibrating. Nationally, March 2026 home prices were only 2.2% above June 2022, while worker earnings rose 14.7%. In 15 large metro markets, home prices are at least 10% below local 2022 peaks.

Read at Fast Company