New Zillow data reveals that 53% of U.S. homes have lost value over the past year—the largest share since 2012, when the housing market bottomed out post-Great Recession. The national average appears stable, but regional disparities are stark, with declines concentrated in the South and West due to increased inventory, buyer caution from recession worries and mortgage rates above 6%, and sellers' reluctance to lower prices.
Hardest-Hit Markets
Pandemic-era boomtowns are seeing the sharpest reversals:
Denver: 91% of homes below peak value.
Austin: 89%.
Sacramento: 88%.
Florida cities: Over 80% in Jacksonville, Orlando, and Tampa.
Texas cities: More than 85% in Dallas and San Antonio.
This aligns with S&P CoreLogic Case-Shiller data, showing price drops in 9 of the top 20 metros. A referenced map highlights metros with the highest shares of declining homes, including Tampa's "steep correction" after rapid price surges.
Zillow's Treh Manhertz describes this as "normalization, not a crash," with an average peak-to-current drop of 9.7%—far milder than the 27% plunge post-2008. Most homeowners remain equity-rich: The national median gain since last sale is 67%, and in stable markets like Buffalo, San Jose, Providence, Columbus, and San Diego, values have doubled. Longer owner tenures in these areas accelerate equity growth, keeping underwater mortgages rare despite the cooldown.
https://www.dailymail.co.uk/real-estate/article-15299957/us-home-values-drop-great-recession.html
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