The housing market of 2024 has been marked by soaring home prices, leading to millions of Americans being stuck in place and unable to move due to worsening affordability.
As of November, the median sale price of a typical single-family home in the United States was $429,971. Mortgage rates also remained largely elevated throughout the year, with the contract rate for the 30-year mortgage loan settling at 6.85% in the week ending Dec. 26. Those factors, coupled with a shortage of available homes for sale, pushed many hopeful buyers out of the market.
Fortunately, some housing markets could see their home values plummet by the end of the decade, per an analysis from US News & World Report. The plummeting values would likely be caused by a number of factors, including a decline in population and an oversupply of homes.
Here are the three housing markets that may see home values dip by 2029. Each housing market will also have its median sale price noted, according to data from real estate marketplace Zillow.
Austin, Texas
Average Home Value: $513,622
Year-over-Year Change: -4.0%
Austin homes being listed for sale are now staying on the market longer than they used to. This could be a sign that the housing market could plummet and stabilize. This comes after Austin's housing market skyrocketed during the COVID-19 pandemic due to the influx of workers in the tech industry.
Boise, Idaho
Average Home Value: $482,666
Year-over-Year Change: 3.1%
Homes in Boise are still seeing increasing values, though they are now rising at a much slower pace than in previous years. Like Austin, Boise also saw a housing market boom during the pandemic, with plenty of out-of-state buyers purchasing properties in the state.
Home prices in Boise could dip after home prices exceeded income growth, which made it unsustainable for locals looking to buy properties, according to GoBankingRates, citing real estate expert Grace Chisom.
Orlando, Florida
Average Home Value: $380,216
Year-over-Year Change: 1.6%
As of the latter half of this year, two-thirds of all homes that sold in Orlando were below the list price. The housing market has also lost some demand, leading to an oversupply of homes. Additionally, Orland relies on its tourism sector, which means short-term investors are likely to slash their prices if tourism is slow.
