The US housing market is experiencing a stark contrast between two regions. In half of the country, home prices are still rising, while in the other half, they’re falling. The main reason for this divide is supply.
In areas with shortages of available homes and less new construction, such as Texas and Florida, prices are holding up. However, these states have seen a decrease in new home sales due to high insurance costs and climate risks. Existing homeowners are also putting their homes on the market, adding to the supply.
Conversely, regions like the Northeast and Midwest with limited space and strict zoning laws are seeing rising home prices. New York City, Chicago, and Minneapolis are among the top-performing markets.
Experts attribute the difference in supply to the region’s construction landscape. In states like Texas, builders can complete new homes quickly, while existing homeowners can wait for a better market before selling. This has led to a “boom” in South, where prices are still increasing.
However, even if home prices are down in your area, they’re likely higher than pre-pandemic levels. According to Zillow, typical home values nationwide sit 46% above their pre-pandemic levels. As the summer’s top housing markets emerge, mid-size metros in the Midwest and Northeast are expected to continue their upward trend due to affordability and climate resiliency.
Source: https://www.axios.com/2025/08/01/real-estate-home-prices-nyc-florida