There are 34 cities nationwide where Zillow forecasts home prices will fall in 2024.
Some of the places home prices may fall were pandemic home-buying hotspots in Texas and Tennessee.
Prices are expected to fall the most in San Jose, California, followed by New Orleans, Louisiana.
Many potential homebuyers hope homes will get less expensive this year — and their wishes might come true.
Zillow predicts home prices will fall in 34 of the 50 largest US cities from November 2023 to November 2024. The forecast is based on Zillow's Home Value Index, which Zillow says represents the "typical home value for a region."
Home prices fall for a variety of reasons. While there is a low supply on the market due to factors like interest rates, the main issue in the US is a lack of demand — or willing buyers. This is starting to push prices down as sellers lower their asking prices to offload their homes.
Relatively high mortgage rates have sidelined people who don't have enough money to buy — as well as those who just don't want to spend the higher amounts required to purchase a home these days. For their part, homeowners who might ordinarily list their homes for sale are reluctant to do so — because they'd then have to find new ones, becoming buyers in a tough environment with high prices and higher rates.
Experts are split on housing-market forecasts for 2024
Top firms have weighed in with various other predictions for the housing market in 2024.
Fannie Mae also predicts that mortgage rates will fall to 6.7% in 2024, and even lower to 6.2% in 2025. The lower rates — which are still relatively high compared to sub-3% rates borrowers got in and around 2020 — may encourage more buyers to make offers. However, LendingTree predicts that because home prices will still remain relatively high, sales will be sluggish.
People from regular homebuyers to big investors track home prices with great interest. Read on for the 34 US cities Zillow said are likely to see home-value declines in 2024, listed in order from least to most.
34. Buffalo, New York
Cheektowaga is a suburban area located in an inner ring suburb of Buffalo, New York.
Getty Images
Percent drop forecasted: -0.2
Zillow's home value in November 2023: $246,677
Zillow's projected home value for November 2024: $246,184
33. Cincinnati, Ohio
The skyline of Cincinnati, Ohio.
Getty Images
Percent drop forecasted: -0.2
Zillow's home value November in 2023: $269,669
Zillow's projected home value for November 2024: $269,130
32. Oklahoma City, Oklahoma
Oklahoma City, Oklahoma.
Sean Pavone/Shutterstock
Percent drop forecasted: -0.3
Zillow's home value in November 2023: $225,977
Zillow's projected home value for November 2024: $225,299
31. Nashville, Tennessee
Nashville, nicknamed “Music City,” is recognized as the country music capital of the world.
Michael Warren/Getty Images
Percent drop forecasted: -0.3
Zillow's home value in November 2023: $429,071
Zillow's projected home value for November 2024: $427,784
30. Richmond, Virgina
Richmond, Virgina.
Sean Pavone/shutterstock
Percent drop forecasted: -0.4
Zillow's home value in November 2023: $349,661
Zillow's projected home value for November 2024: $348,262
29. Cleveland, Ohio
Yuanshuai Si/Getty Images
Percent drop forecasted: -0.4
Zillow's home value in November 2023: $214,136
Zillow's projected home value for November 2024: $213,279
28. Kansas City, Missouri
Kansas City, Missouri.
Mihai_Andritoiu/Shutterstock
Percent drop forecasted: -0.4
Zillow's home value in November 2023: $288,301
Zillow's projected home value for November 2024: $287,148
27. Riverside, California
Riverside, California
Jon Bilous/Shutterstock
Percent drop forecasted: -0.4
Zillow's home value in November 2023: $555,039
Zillow's projected home value for November 2024: $552,819
26. Philadelphia, Pennsylvania
Philadelphia, Pennsylvania
joe daniel price/Getty Images
Percent drop forecasted: -0.7
Zillow's home value in November 2023: $344,731
Zillow's projected home value for November 2024: $342,318
25. Milwaukee, Wisconsin
Murat Taner/Getty Images
Percent drop forecasted: -0.8
Zillow's home value in November 2023: $324,778
Zillow's projected home value for November 2024: $322,180
24. Dallas, Texas
Dallas, Texas.
f11photo/Shutterstock
Percent drop forecasted: -0.8
Zillow's home value in November 2023: $366,326
Zillow's projected home value for November 2024: $363,395
23. Virginia Beach, Virginia
Aerial view of the Virginia Beach oceanfront.
Kyle J Little/Shutterstock
Percent drop forecasted: -1.1
Zillow's home value in November 2023: $334,034
Zillow's projected home value for November 2024: $330,360
22. Detroit, Michigan
Detroit, Michigan skyline.
Sean Pavone/Shutterstock
Percent drop forecasted: -1.1
Zillow's home value in November 2023: $238,284
Zillow's projected home value for November 2024: $235,663
21. Louisville, Kentucky
Home to the annual horse racing tournament the Kentucky Derby, Louisville is located along the Ohio River and is one of the Midwest’s largest cities.
Getty Images
Percent drop forecasted: -1.3
Zillow's home value in November 2023: $245,237
Zillow's projected home value for November 2024: $242,049
20. Las Vegas, Nevada
Las Vegas, Nevada.
Sean Pavone/Shutterstock
Percent drop forecasted: -1.3
Zillow's home value November in 2023: $405,754
Zillow's projected home value for November 2024: $400,479
19. Boston, Massachusetts
Boston, Massachusetts skyline at dusk.
Sean Pavone/Shutterstock
Percent drop forecasted: -1.3
Zillow's home value in November 2023: $652,944
Zillow's projected home value for November 2024: $644,456
18. St. Louis, Missouri
St. Louis, Missouri.
joe daniel price/Getty Images
Percent drop forecasted: -1.4
Zillow's home value in November 2023: $239,310
Zillow's projected home value for November 2024: $235,960
17. Seattle, Washington
Seattle, Washington downtown skyline.
Sean Pavone/Shutterstock
Percent drop forecasted: -1.6
Zillow's home value in November 2023: $698,864
Zillow's projected home value for November 2024: $687,682
16. Denver, Colorado
Denver, Colorado.
f11photo/Shutterstock
Percent drop forecasted: -1.8
Zillow's home value in November 2023: $566,690
Zillow's projected home value for November 2024: $556,490
15. Houston, Texas
The skyline of Houston, Texas, at sunset.
Art Wager/Getty Images
Percent drop forecasted: -2
Zillow's home value in November 2023: $300,667
Zillow's projected home value for November 2024: $294,654
14. Austin, Texas
Austin, Texas
Brandon Bell
Percent drop forecasted: -2.1
Median price in November 2023: $455,424
Median price projected for November 2024: $445,860
13. Pittsburgh, Pennsylvania
Pittsburgh, Pennsylvania.
Sean Pavone/Shutterstock
Percent drop forecasted: -2.1
Zillow's home value in November 2023: $203,260
Zillow's projected home value for November 2024: $198,992
12. San Antonio, Texas
f11photo/Shutterstock
Percent drop forecasted: -2.1
Zillow's home value in November 2023: $284,292
Zillow's projected home value for November 2024: $278,322
11. Chicago, Illinois
Bob Krist/Getty Images
Percent drop forecasted: -2.2
Zillow's home value in November 2023: $303,291
Zillow's projected home value for November 2024: $296,619
10. Los Angeles, California
Los Angeles, California.
Neal Pritchard Photography
Percent drop forecasted: -2.2
Zillow's home value in November 2023: $903,521
Zillow's projected home value for November 2024: $883,644
9. Sacramento, California
Sacramento, California.
Merge Digital Media LLC/Shutterstock
Percent drop forecasted: -2.4
Zillow's home value in November 2023: $559,123
Zillow's projected home value for November 2024: $545,704
8. Portland, Oregon
Portland, Oregon, has grown its the licensed cannabis industry since recreational marijuana was legalized in 2015.
Shutterstock/Sean Pavone
Percent drop forecasted: -2.5
Zillow's home value in November 2023: $531,528
Zillow's projected home value for November 2024: $518,240
7. Washington, District of Columbia
Washington, DC, cityscape with Washington Monument and Jefferson Memorial.
ESB Professional/Shutterstock
Percent drop forecasted: -2.6
Zillow's home value in November 2023: $540,101
Zillow's projected home value for November 2024: $526,058
6. Baltimore, Maryland
Baltimore, Maryland.
Sean Pavone/Shutterstock
Percent drop forecasted: -2.9
Zillow's home value in November 2023: $370,023
Zillow's projected home value for November 2024: $359,292
5. New York, New York
Alexander Spatari/Getty Images
Percent drop forecasted: -2.9
Zillow's home value in November 2023: $624,788
Zillow's projected home value for November 2024: $606,669
4. Minneapolis, Minnesota
Claire Gentile/Getty Images
Percent drop forecasted: -3
Zillow's home value in November 2023: $362,971
Zillow's projected home value for November 2024: $352,083
3. San Francisco, California
Alexander Spatari/Getty Images
Percent drop forecasted: -4.8
Zillow's home value in November 2023: $1,108,117
Zillow's projected home value for November 2024: $1,054,927
2. New Orleans, Louisiana
French Quarter in New Orleans, Louisiana.
Getty Images
Percent drop forecasted: -6
Zillow's home value in November 2023: $235,716
Zillow's projected home value for November 2024: $221,573
1. San Jose, California
Walter Bibikow/Getty Images
Percent drop forecasted: -6.1
Zillow's home value in November 2023: $1,460,533
Zillow's projected home value for November 2024: $1,317,440
