Zillow has just released its updated U.S. home value data for June 2025, marking the halfway point of the calendar year, and the results are eye-opening. According to the Zillow Home Value Index, the typical home value now stands at $369,147, up just 0.45% YoY, indicating a broader cooling trend in the housing market.
But beneath that national average, some local markets have seen sharp declines. This article will explore the Top 10 cities where home prices have dropped the most, with surprising entries from Florida and Texas, where rising inventory is tipping the balance. If you’re watching the market for bargains or warning signs, these cities are where the shift is happening fastest.
Top 10 Metros with the Lowest YoY Home Value Growth
The housing market in several major U.S. metros has cooled significantly, with some areas experiencing steep year-over-year (YoY) declines in typical home values. Using Zillow’s “Typical Home Value” metric for metros with populations over 750,000, here are the 10 cities that have seen the largest price drops out of the top 100 metros as of June 2025.
1. Cape Coral, FL – -9.0%
Cape Coral leads the nation in home price declines, with typical home values falling -9.0% YoY to $355,474. This sharp drop reflects a post-pandemic correction in Florida’s once-booming coastal housing markets, as rising insurance costs and higher mortgage rates cool buyer demand.
2. North Port, FL – -8.2%
North Port has seen values slide -8.2% to $416,874. The area experienced rapid appreciation during 2020–2022, driven by in-migration and remote work trends. That growth has now reversed as affordability challenges and increased inventory shift the balance toward buyers.
3. Austin, TX – -5.4%
Austin’s tech-fueled boom has lost steam, with prices down to -5.4% to $449,110. After years of double-digit gains, high interest rates, and a cooling job market have prompted sellers to adjusted expectations, leading to more competitive pricing.
4. Tampa, FL – -5.2%
Tampa’s typical home value has dropped to $365,683, a -5.2% YoY decline. The market’s slowdown comes after one of the hottest growth periods in the country, with elevated inventory and buyer pushback on high prices driving the correction.
5. Lakeland, FL – -3.9%
Lakeland’s values have slipped -3.9% to $304,558. Positioned between Tampa and Orlando, the market benefited from pandemic-era migration but is now feeling the impact of higher financing costs and a more balanced supply-demand dynamic.
Cape Coral, Florida, has the highest home value growth YoY drop in 2025, reaching -9%. Access the above table here. [Link]
6. Phoenix, AZ – -3.2%
Phoenix saw typical home values decline to $456,017, down -3.2% YoY. After explosive growth in 2020–2022, affordability challenges and rising listings are softening prices. The slowdown mirrors trends in other Sun Belt metros that saw rapid appreciation.
7. Dallas, TX – -3.2%
Dallas shares the same -3.2% drop as Phoenix, with values now at $375,293. Inventory growth and a slowdown in corporate relocations have contributed to easing price pressures.
8. San Antonio, TX – -3.2%
San Antonio also recorded a -3.2% decline to $286,339. The city remains one of Texas’s more affordable large markets, but the combination of high borrowing costs and slower in-migration has moderated demand.
9. Orlando, FL – -3.0%
Orlando’s values are down -3.0% to $392,916. While tourism and job growth remain strong, higher homeownership costs are discouraging some buyers, particularly first-time purchasers.
10. Miami, FL – -2.9%
Miami rounds out the list with a -2.9% drop to $480,873. Rising property taxes, insurance premiums, and affordability concerns have tempered demand in a market that had seen record-breaking gains just two years ago.
These trends reveal how quickly local dynamics, like rising inventory, affordability pressure, and longer time on market, can shift buyer-seller power balances. Even in large, economically diverse metros, home values aren’t guaranteed to rise. For buyers, especially those priced out in recent years, this shift could mark a long-awaited opening.
To help make sense of these shifts at a more granular level, Reventure App offers home value data all the way down to the ZIP code for just $39/ month. Localized insight from Reventure App empowers buyers to spot undervalued neighborhoods. It also helps sellers align with current market realities, making it easier to make smarter, better-timed decisions in a cooling, yet still competitive, housing market.
