Real Estate

Declining Housing Markets: Discover 7 U.S. Cities Where Home Prices Are Set to Plunge

Seven U.S. housing markets face double-digit price drops due to economic factors and industry struggles.

byAndres Castro

November 1, 2025, 3:41 PM

A row of traditional American suburban houses with porches and green lawns, with a US flag flying overhead.

A classic residential street lined with traditional houses and a large American flag flying high. By MDL.

Executive Summary

Seven specific U.S. housing markets are projected to experience double-digit price declines exceeding 10% over the next 12 months.

These localized downturns are attributed to specific economic factors including industry struggles, population shifts, and limited economic diversification in the affected regions.

The national housing market is expected to remain relatively stable with flat growth in 2025, with modest increases in existing home sales and cooling rent growth balancing out the localized declines.

The Trajectory So Far

The projected double-digit housing price declines in specific U.S. markets are primarily driven by underlying economic struggles, including reliance on volatile or declining traditional industries, significant population shifts as younger residents seek opportunities elsewhere, and a lack of economic diversification, making these regions particularly vulnerable to market downturns.

Assessing Risk and Value

Investors should note the significant divergence between the projected national housing market stability and the substantial localized risks, with seven specific markets forecast to experience double-digit price declines exceeding 10%. This presents potential buying opportunities for investors seeking lower entry points in these distressed locales, but it also signals considerable risk for existing homeowners or those looking to sell in these particular regions. Consequently, thorough due diligence into the long-term economic health, industry diversification, and demographic trends of specific markets is critical for assessing true value and mitigating risk, rather than relying on broader national trends.

Expert Predictions and Forecasts

Seven specific U.S. housing markets are projected to experience double-digit price declines, exceeding 10%, over the next 12 months, due to factors like industry struggles, population shifts, and limited economic diversification.

The national housing market is expected to remain relatively stable with flat growth in 2025, followed by a slight recovery in 2026, while rent growth is projected to cool significantly and new listings are anticipated to outpace sales, improving inventory levels.

Seven specific U.S. housing markets are projected to experience double-digit price declines, exceeding 10%, over the next 12 months, according to recent data and market observations. While the national housing market is expected to remain relatively stable with flat growth in 2025, these localized downturns are attributed to a confluence of economic factors, including industry struggles, population shifts, and limited economic diversification in the affected regions.

Markets Facing Significant Declines

These forecasts, drawing on Zillow data and expert insights, pinpoint several metropolitan areas expected to see more than a 10% price decline by September 2026. This represents a substantial shift for homeowners and a potential opportunity for buyers in these specific locales.

Greenville, MS: Projected to decline by 17.8%, facing challenges in economic diversification, population shifts, and historically slower appreciation.
Pecos, TX: Expected to drop by 12.5%, largely due to reliance on the volatile energy sector and potential out-migration for job prospects.
Helena, AR: A projected decline of 11.6%, similar to other smaller Southern markets grappling with economic shifts and demographic trends unfavorable to housing demand.
Middlesborough, KY: Forecasted to decrease by 10.9%, battling struggles in traditional industries, limited job creation, and a shrinking younger population.
Bennettsville, SC: Anticipated to fall by 10.7%, with an economic base reliant on sectors facing headwinds, requiring significant investment for new industries.
Cleveland, MS: Expected to decline by 10.6%, continuing economic challenges within the Mississippi Delta region impacting housing demand.
Clarksdale, MS: Projected to see a 10.3% drop, part of the broader Delta region experiencing similar economic pressures and population dynamics.

A 10% drop means a home valued at $200,000 today could be worth $180,000 in approximately two years, signifying a considerable change for local real estate stakeholders.

Underlying Economic Factors

The projected declines in these markets are not random but stem from fundamental economic forces. Many areas, particularly those in the Mississippi Delta like Greenville, Cleveland, and Clarksdale, have economies historically tied to agriculture or specific industries that are now evolving or declining, leading to reduced housing demand as job opportunities dwindle.

Pecos, TX, exemplifies a market heavily influenced by the cyclical oil and gas industry. Fluctuations in energy prices or national demand can cause immediate local economic hits, resulting in job losses and a subsequent drop in housing demand and prices.

Across these smaller cities, a consistent trend involves younger populations relocating to larger urban centers offering more opportunities. This demographic shift often leads to decreased overall housing market demand and a surplus of existing homes, further depressing prices. The lack of economic diversification in these regions makes them more vulnerable to price declines when broader economic conditions tighten.

Broader National Context

Despite these localized downturns, Zillow’s national forecast suggests a relatively flat year for home prices in 2025, followed by a slight recovery in 2026. This indicates that while some areas will experience declines, others will likely maintain stability or see modest gains, balancing the national average.

The national forecast anticipates approximately 4.07 million existing home sales in 2025, a modest increase from 2024, indicating continued market activity. New listings growth is expected to cool but still outpace sales, which should help improve inventory levels that were critically low during the pandemic. Rent growth is also projected to cool significantly, with single-family rents rising 2.8% and multifamily rents at 1.1% in 2025, signaling a more balanced rental market after years of rapid increases.

Implications for Buyers and Sellers

For homeowners in the identified markets, it is prudent to set realistic expectations regarding home values and consider how current economic conditions might influence selling timelines and prices. Understanding these potential declines is crucial for competitive pricing.

Conversely, these projected price declines could present significant opportunities for buyers, allowing them to enter homeownership at more accessible price points. However, thorough due diligence on the local economy and job market of any area under consideration is essential, especially in these more vulnerable regions, to understand the long-term prospects beyond the immediate price tag.