Major U.S. cities saw a rise in home prices in 2024, except for these four cities in Texas and Florida.

Although borrowing costs were high, home prices in major U.S. cities increased in 2024, except for a few metros in Texas and Florida, where prices decreased.

According to Redfin's online broker listings data from Nov. 2024, only four major cities experienced year-over-year price declines among the top 50 metros. Here's a breakdown of which cities experienced price drops and the extent of their decline based on changes in median home prices.

• Austin, Texas: -3.7%
• Tampa, Florida: -3.5%
• San Antonio, Texas: -3.0%
• Fort Lauderdale, Florida: -1.6%

Austin, Texas, has experienced a significant reversal in home prices, becoming a leading example of pandemic boomtowns facing a sharp decline. Home prices, which reached a peak of $667,000 in 2022, have since dropped to $548,500, according to Redfin's latest data. Despite still being higher than the national median of $429,971, this drop marks a significant shift from the city's pandemic-era growth.

In the years 2020 to 2022, Americans migrated to warmer regions and more affordable cities, such as Austin, resulting in an increase in demand for housing in Texas and Florida. This trend coincided with a construction boom, which helped restore pre-pandemic housing supply levels in both states.

In contrast to the national average, major cities in Texas and Florida are experiencing slower price growth due to migration slowing and new homes entering the market. While some cities in these states recorded price declines, others, such as Orlando and West Palm Beach in Florida, along with Fort Worth in Texas, experienced only modest gains of under 2%, significantly below the national average of 5.4%, according to Redfin.

The high percentage of unsold homes in Austin, Fort Lauderdale, and San Antonio for over 60 days is contributing to the decline in prices, as reported by Redfin in November.

Besides the challenges faced by Florida's housing market, other factors such as natural disasters and rising construction costs are causing insurance premiums to increase. Additionally, surging HOA fees are making homes less affordable for buyers.

In contrast to the majority of the country, where a shortage of inventory is predicted to increase home prices.

"Redfin senior economist Sheharyar Bokhari predicts that home prices will continue to rise steadily in 2025 at a similar pace to this year, with elevated mortgage rates causing many homeowners to hold onto their homes and low rates they have locked in. This will result in a low number of homes available for buyers to compete over, keeping prices consistent."

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