Home prices are dropping in one-third of U.S. cities. Here's where.
Median home sale prices declined in 39 of the largest 129 U.S. cities in the first quarter of 2026, with many located in Florida, California, and Southwestern states. The biggest decline was in Florida's Cape Coral-Fort Myers region, where the median home sale price dropped 9% to $341,250.
The U.S. real estate market is experiencing a reset, with median sale prices falling in about one-third of major cities in the first quarter of 2026. According to ATTOM, 39 out of 129 major cities saw a decline, with many in Florida, California, and Southwestern states. The Cape Coral-Fort Myers region in Florida had the biggest decline, with a 9% drop to $341,250. Cities that saw big price increases during the pandemic, such as Austin, Texas, are now experiencing declines. Rising homeowners' insurance and property taxes are also contributing to the decline. Florida homeowners have paid the highest insurance rates in the country for several years, with the average rate jumping 18% to $8,292 last year.
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