Eric McConnell
4 min read
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America's housing affordability crisis has shackled would-be buyers for several years, but some relief may be on the horizon. A recent profile of the housing market by Newsweek shows that home values have declined in 27 out of 50 states since January. Newsweek cited a Zillow housing report, which recorded the largest monthly declines between March and April.
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Housing market observers speculate that this downward movement in home values could signal a nationwide tilt toward a buyer's market. The markets with the largest declines in value were:
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Colorado
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Washington, D.C.
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California
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Florida
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Washington
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Arizona
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Louisiana
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Texas
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Georgia
Florida home values are down by 0.55% statewide, making it the biggest loser in terms of home values. That's quite a 180-degree turn because Florida's real estate market was booming as recently as 2023. Buyers flocked to the state during and after the pandemic, which made Florida one of the country's hottest real estate markets.
The buying boom resulted in a price spike, but buyers didn't necessarily feel its effects until the Fed began raising interest rates to curtail inflation. Unfortunately for many would-be buyers, and sellers too, the run-up in interest rates coincided with an insurance crisis that saw premiums and deductibles skyrocket. The high interest rates and finance costs are a perfect recipe for cooling off the housing market.
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Nick Gerli, CEO of the Reventure real estate app, is particularly bearish on Florida real estate. "I don’t think people understand what’s happening in the housing market right now," Gerli posted on X, "Florida now has 177,00 listings. Highest level on record. Entire Northeast U.S. has 79,000 listings. Lowest level on record. People are leaving Florida. And moving back north."
He also described it as "A structural trend that will likely last years, and cause Florida’s housing market to decline for an extended period." Florida is not alone in dealing with a housing slowdown brought about by high financing and insurance costs. California and Texas residents have been grappling with those same issues, which probably explains their presence on the list of states with the largest declines in home value.
