Multiple US Housing Markets See Significant Price Declines

Recent housing market data reveals a nationwide decline in affordability and home price growth, particularly impacting lower-income urban areas such as Columbus, Ohio, where home prices have grown substantially faster than incomes. Nationally, home prices rose only 0.5% year-over-year between May 2024 and May 2025, a significant slowdown from prior years, with an increasing number of major metro areas experiencing year-over-year price declines—32% of the 300 largest markets saw falling prices by May 2025, including cities like Austin, Tampa, Dallas, and Phoenix. This cooling is reflected in cities such as Oakland, Jacksonville, and Dallas, where home sale prices have dropped notably, shifting negotiating power toward buyers amid rising inventory and slower sales. Concurrently, new home construction has slowed, with building permits and housing starts at five-year lows, further influencing market dynamics. In rental markets, however, some high-cost areas like Jersey City are seeing rents ease due to a surge in new apartment construction, which is increasing competition among landlords and leading to lower rental prices despite ongoing strong demand. These trends collectively indicate a housing market transitioning from a seller's to a more balanced or buyer-favorable environment, with affordability challenges persisting especially for lower-income urban residents.