Where U.S. Home Prices Are Actually Falling (2026)
Most of the country is still rising, but a growing set of markets has tipped into decline. The falling map as of Q2 2026.
Key findings
- As of Q2 2026, home prices were falling year over year in 4 states and the District of Columbia combined, and in 26 of the 100 largest metros.
- The steepest state decline was New Mexico at -1.2%; the steepest metro decline was Everett, WA at -3.9%.
- The declines cluster in markets that overshot during the pandemic, especially in the Mountain West and parts of the Sun Belt and Pacific coast.
- A falling index means repeat-sale prices are lower than a year earlier; it measures price change, not the dollar level of homes.
After years of near-universal price gains, parts of the country have tipped into decline. This lists every state and large metro where the FHFA purchase-only index was lower than a year earlier as of Q2 2026. Most of the map is still rising, but the pockets of decline mark where the pandemic run-up has started to unwind. An index tracks price change relative to a base period, not dollar price levels.
Falling markets, Q2 2026
Metros where prices fell the most
| Year-over-year change | Year-over-year change |
|---|---|
| Everett, WA | -3.88% |
| San Antonio-New Braunfels, TX | -2.96% |
| Bakersfield-Delano, CA | -2.54% |
| Seattle-Bellevue-Kent, WA | -2.52% |
| Tucson, AZ | -2.44% |
| San Francisco-San Mateo-Redwood City, CA | -2.35% |
| San Jose-Sunnyvale-Santa Clara, CA | -1.99% |
| Albuquerque, NM | -1.71% |
| Washington, DC-MD | -1.12% |
| Denver-Aurora-Centennial, CO | -1.06% |
| Colorado Springs, CO | -0.86% |
| Riverside-San Bernardino-Ontario, CA | -0.8% |
States with falling prices
| State | Year-over-year |
|---|---|
| New Mexico | -1.2% |
| Washington | -1.0% |
| Colorado | -0.6% |
| California | -0.3% |
FHFA purchase-only quarterly index, states and DC with negative year-over-year change. Index percent change, not dollar prices.
Data Sources & Methodology
The figures on this page are computed directly from the source data below. Narrative text accompanies the figures but never generates them.
FHFA House Price Index (HPI)
- Publisher:
- Federal Housing Finance Agency
- Vintage:
- 2026
- Access:
- BigQuery
- Cadence:
- monthly
The Federal Housing Finance Agency House Price Index measures changes in single-family home values using a repeat-sales method on mortgages acquired by Fannie Mae and Freddie Mac. The master file carries every published series: monthly indexes for the nation and the nine Census divisions, and quarterly indexes for states and metropolitan areas, in multiple index types, back to the 1970s.
The HPI is a weighted repeat-sales index: it tracks price changes on the same homes over time using mortgage transactions acquired or guaranteed by Fannie Mae and Freddie Mac. Values are index levels relative to a base period, not dollar prices.
Monthly indexes are published for the United States and the nine Census divisions; state and metropolitan-area indexes are quarterly. Both seasonally adjusted and not-seasonally-adjusted series are provided.
Price growth is computed as the percent change in the index between two periods. Because it is an index, comparisons are about rate of change, not absolute price levels between places.
- The purchase-only and standard indexes cover only homes with Fannie Mae or Freddie Mac mortgages, so cash sales and homes financed outside the enterprises are not included.
- It is an index of price change, not a measure of dollar price levels, so two places with the same index are not equally expensive.
- Monthly detail exists only for the nation and Census divisions; state and metro series are quarterly.
- Recent periods can be revised as more transactions are reported.
How these figures were produced
- Estimate type:
- Repeat-sales price index (not a count or dollar level)
- Weighting:
- Repeat-sales weighting of enterprise-acquired mortgages
Suggested citation
Federal Housing Finance Agency, House Price Index, 2026. Analysis by Matt George, itsmattgeorge.com. Retrieved 2026-10-24.