Cooling Trends: Where U.S. Home Prices Are Dropping First
Bryan Miller
Published Sep 10, 2026
Nationally, the median listing price per square foot fell 1.8% year over year in August, marking 10 consecutive months of annual price-drop adjustments.
Regional data shows price declines were led by the Northeast (-3.6%), followed by the South (-2.6%) and the West (-2.1%), while prices in the Midwest remained unchanged.
Elevated mortgage rates and expanding housing supply have created a market dynamic where sellers must price properties competitively to attract budget-conscious buyers.
Economists note that many metro areas experiencing the steepest drops are former pandemic boomtowns that are now relinquishing some of their rapid 2020–2022 price gains.
Metros with the Largest Price-Per-Square-Foot Declines
- Austin-Round Rock-San Marcos, TX: -8.1%
- Tampa-St. Petersburg-Clearwater, FL: -5.6%
- Memphis, TN-MS-AR: -4.1%
- San Francisco-Oakland-Fremont, CA: -3.9%
- San Antonio-New Braunfels, TX: -3.6%
- Denver-Aurora-Centennial, CO: -3.4%
- Baltimore-Columbia-Towson, MD: -3.2%
- San Diego-Chula Vista-Carlsbad, CA: -2.7%
- Orlando-Kissimmee-Sanford, FL: -2.6%
- Portland-Vancouver-Hillsboro, OR-WA: -2.4%
In contrast, several local markets bucked the broader national cooling trend and continued to post price increases.
Leading gains nationwide were Providence, Rhode Island, with a 9.3% increase, followed by Indianapolis (+4.4%) and Chicago (+3.6%).
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