Home Values Plunge in Over Half of US as Housing Market Normalizes

According to the latest Zillow data, home values are falling for more than 53% of homes across the United States as of October 2025. This represents the biggest share of depreciating properties in over a decade, when the country was still recovering from the Great Recession.

While home price appreciation has been roughly flat nationally, there are significant regional disparities. Many one-time pandemic boomtowns and areas that aggressively expanded housing supply in recent years are now seeing steep declines. In Denver, 91% of home values have dropped from their peaks, followed by 89% in Austin, Texas, and 88% in Sacramento, California. Over 80% of homes in the Florida cities of Jacksonville, Orlando, and Tampa have also lost value, along with 87% in Dallas and 86% in San Antonio.

Despite the widespread cooling, most homeowners are still sitting on substantial equity gains. The median increase in home value over the past six years is 67%, according to Zillow. Experts say the current market is experiencing a "normalization" rather than a full-blown crash, with the average drop from peak valuations at 9.7% - far less severe than the 27% plunge seen during the last major housing downturn.