Housing-market prediction for 2024: 34 spots with falling home prices – Business Insider

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Home prices are forecast to fall in these 34 cities

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Homes in Seattle.

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  • There are 34 cities nationwide where, Zillow forecasts, home prices will fall in 2024.
  • Some of the places were pandemic-homebuying hot spots in Texas and Tennessee.
  • Prices are expected to fall the most in San Jose, California, followed by New Orleans.
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Many potential homebuyers hope homes will get less expensive this year — and their wishes may come true.

Zillow predicts home prices will fall in 34 of the 50 largest US cities from November 2023 to November 2024. The forecast is based on Zillow’s Home Value Index, which Zillow says represents the “typical home value for a region.”

Home prices fall for a variety of reasons. While there’s a low supply on the market due to factors such as interest rates, the main issue in the US is a lack of demand — or willing buyers. This is starting to push prices down as sellers lower their asking prices to offload their homes.

Relatively high mortgage rates have sidelined people who don’t have enough money to buy — as well as those who just don’t want to spend the higher amounts required to purchase a home these days. For their part, homeowners who may ordinarily list their homes for sale are reluctant to do so — because they’d then have to find new ones, becoming buyers in a tough environment with high prices and higher rates.

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Experts are split on housing-market forecasts for 2024

Top firms have weighed in with various other predictions for the housing market in 2024.

Zillow forecasts that home prices nationwide will, on average, stay level. Fannie Mae expects home prices to rise by the end of the year.

Fannie Mae also predicts mortgage rates will fall to 6.7% in 2024 and even lower to 6.2% in 2025. The lower rates — which are still relatively high compared with sub-3% rates borrowers got in and around 2020 — may encourage more buyers to make offers. But LendingTree predicts that because home prices will still remain relatively high, sales will be sluggish.

From regular homebuyers to big investors, people track home prices with great interest. Read on for the 34 US cities Zillow said were likely to see home-value declines in 2024, listed in order from least to most.

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34. Buffalo, New York

Residental buildings in Buffalo, New York.

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Cheektowaga is a suburban area located in an inner-ring suburb of Buffalo, New York.

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  • Percent drop forecasted: -0.2

  • Zillow’s home value in November 2023: $246,677

  • Zillow’s projected home value for November 2024: $246,184

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33. Cincinnati

Skyline  Cincinnati Ohio

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The skyline of Cincinnati.

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  • Percent drop forecasted: -0.2

  • Zillow’s home value November in 2023: $269,669

  • Zillow’s projected home value for November 2024: $269,130

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32. Oklahoma City

Oklahoma City, Oklahoma, downtown skyline in the late afternoon.

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Oklahoma City.

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  • Percent drop forecasted: -0.3

  • Zillow’s home value in November 2023: $225,977

  • Zillow’s projected home value for November 2024: $225,299

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31. Nashville

Nashville, Tennessee

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Nashville, nicknamed “Music City,” is recognized as the country music capital of the world.

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  • Percent drop forecasted: -0.3

  • Zillow’s home value in November 2023: $429,071

  • Zillow’s projected home value for November 2024: $427,784

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30. Richmond, Virginia

Richmond

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Richmond, Virginia.


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  • Percent drop forecasted: -0.4

  • Zillow’s home value in November 2023: $349,661

  • Zillow’s projected home value for November 2024: $348,262

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29. Cleveland

Cleveland, Ohio

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  • Percent drop forecasted: -0.4

  • Zillow’s home value in November 2023: $214,136

  • Zillow’s projected home value for November 2024: $213,279

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28. Kansas City, Missouri

Aerial view of Kansas City skyline at dusk, viewed from Penn Valley Park.

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Kansas City, Missouri.

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  • Percent drop forecasted: -0.4

  • Zillow’s home value in November 2023: $288,301

  • Zillow’s projected home value for November 2024: $287,148

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27. Riverside, California

Riverside California

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Riverside, California

Jon Bilous/Shutterstock


  • Percent drop forecasted: -0.4

  • Zillow’s home value in November 2023: $555,039

  • Zillow’s projected home value for November 2024: $552,819

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26. Philadelphia

Philadelphia, Pennsylvania

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Philadelphia

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  • Percent drop forecasted: -0.7

  • Zillow’s home value in November 2023: $344,731

  • Zillow’s projected home value for November 2024: $342,318

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25. Milwaukee

Milwaukee, Wisconsin

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Murat Taner/Getty Images


  • Percent drop forecasted: -0.8

  • Zillow’s home value in November 2023: $324,778

  • Zillow’s projected home value for November 2024: $322,180

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24. Dallas

Dallas, Texas cityscape with blue sky at sunset, Texas

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Dallas.

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  • Percent drop forecasted: -0.8

  • Zillow’s home value in November 2023: $366,326

  • Zillow’s projected home value for November 2024: $363,395

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23. Virginia Beach, Virginia

Aerial view of the Virginia Beach oceanfront.

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Aerial view of the Virginia Beach oceanfront.

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  • Percent drop forecasted: -1.1

  • Zillow’s home value in November 2023: $334,034

  • Zillow’s projected home value for November 2024: $330,360

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22. Detroit

Detroit, Michigan downtown skyline

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The Detroit skyline.

Sean Pavone/Shutterstock


  • Percent drop forecasted: -1.1

  • Zillow’s home value in November 2023: $238,284

  • Zillow’s projected home value for November 2024: $235,663

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21. Louisville, Kentucky

Downtown Louisville, Kentucky.

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Home to the annual horse racing tournament the Kentucky Derby, Louisville is along the Ohio River and is one of the Midwest’s largest cities.

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  • Percent drop forecasted: -1.3

  • Zillow’s home value in November 2023: $245,237

  • Zillow’s projected home value for November 2024: $242,049

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20. Las Vegas

Las Vegas, Nevada.

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Las Vegas.

Sean Pavone/Shutterstock


  • Percent drop forecasted: -1.3

  • Zillow’s home value November in 2023: $405,754

  • Zillow’s projected home value for November 2024: $400,479

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19. Boston

Boston, Massachusetts skyline at dusk.

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The Boston skyline at dusk.

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  • Percent drop forecasted: -1.3

  • Zillow’s home value in November 2023: $652,944

  • Zillow’s projected home value for November 2024: $644,456

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18. St. Louis

St Louis, Missouri

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St. Louis.

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  • Percent drop forecasted: -1.4

  • Zillow’s home value in November 2023: $239,310

  • Zillow’s projected home value for November 2024: $235,960

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17. Seattle

Seattle, Washington downtown skyline.

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Seattle’s downtown skyline.

Sean Pavone/Shutterstock


  • Percent drop forecasted: -1.6

  • Zillow’s home value in November 2023: $698,864

  • Zillow’s projected home value for November 2024: $687,682

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16. Denver

Denver, Colorado.

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Denver.

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  • Percent drop forecasted: -1.8

  • Zillow’s home value in November 2023: $566,690

  • Zillow’s projected home value for November 2024: $556,490

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15. Houston

The skyline of Houston, Texas, at sunset.

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The skyline of Houston at sunset.

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  • Percent drop forecasted: -2

  • Zillow’s home value in November 2023: $300,667

  • Zillow’s projected home value for November 2024: $294,654

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14. Austin

An aerial view of Austin, Texas.

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Austin

Brandon Bell


  • Percent drop forecasted: -2.1

  • Median price in November 2023: $455,424

  • Median price projected for November 2024: $445,860

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13. Pittsburgh

Pittsburgh, Pennsylvania.

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Pittsburgh.

Sean Pavone/Shutterstock


  • Percent drop forecasted: -2.1

  • Zillow’s home value in November 2023: $203,260

  • Zillow’s projected home value for November 2024: $198,992

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12. San Antonio

San Antonio Texas

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  • Percent drop forecasted: -2.1

  • Zillow’s home value in November 2023: $284,292

  • Zillow’s projected home value for November 2024: $278,322

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11. Chicago

Navy Pier in Chicago, Illinois

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Bob Krist/Getty Images


  • Percent drop forecasted: -2.2

  • Zillow’s home value in November 2023: $303,291

  • Zillow’s projected home value for November 2024: $296,619

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10. Los Angeles

Overview of Los Angeles, California.

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Los Angeles.

Neal Pritchard Photography


  • Percent drop forecasted: -2.2

  • Zillow’s home value in November 2023: $903,521

  • Zillow’s projected home value for November 2024: $883,644

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9. Sacramento, California

Sacramento, California.

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Sacramento, California.

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  • Percent drop forecasted: -2.4

  • Zillow’s home value in November 2023: $559,123

  • Zillow’s projected home value for November 2024: $545,704

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8. Portland, Oregon

Portland Oregon skyline city

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Portland, Oregon.

Shutterstock/Sean Pavone


  • Percent drop forecasted: -2.5

  • Zillow’s home value in November 2023: $531,528

  • Zillow’s projected home value for November 2024: $518,240

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7. Washington, DC

Washington, DC

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The Washington, DC, cityscape with the Washington Monument and Jefferson Memorial.

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  • Percent drop forecasted: -2.6

  • Zillow’s home value in November 2023: $540,101

  • Zillow’s projected home value for November 2024: $526,058

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6. Baltimore

Baltimore, Maryland, downtown cityscape at dusk.

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Baltimore.

Sean Pavone/Shutterstock


  • Percent drop forecasted: -2.9

  • Zillow’s home value in November 2023: $370,023

  • Zillow’s projected home value for November 2024: $359,292

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5. New York City

New York

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Alexander Spatari/Getty Images


  • Percent drop forecasted: -2.9

  • Zillow’s home value in November 2023: $624,788

  • Zillow’s projected home value for November 2024: $606,669

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4. Minneapolis

Minneapolis, Minnesota

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Claire Gentile/Getty Images


  • Percent drop forecasted: -3

  • Zillow’s home value in November 2023: $362,971

  • Zillow’s projected home value for November 2024: $352,083

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3. San Francisco

San Francisco, California

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Alexander Spatari/Getty Images


  • Percent drop forecasted: -4.8

  • Zillow’s home value in November 2023: $1,108,117

  • Zillow’s projected home value for November 2024: $1,054,927

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2. New Orleans

New Orleans french quarter

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French Quarter in New Orleans.

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  • Percent drop forecasted: -6

  • Zillow’s home value in November 2023: $235,716

  • Zillow’s projected home value for November 2024: $221,573

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1. San Jose, California

San Jose, California

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Walter Bibikow/Getty Images


  • Percent drop forecasted: -6.1

  • Zillow’s home value in November 2023: $1,460,533

  • Zillow’s projected home value for November 2024: $1,317,440

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