15 Housing Markets Where Home Prices Have Fallen the Most Since the Pandemic Boom Ended

The pandemic housing boom was nothing short of historic. Between March 2020 and June 2022, U.S. home prices surged by 43.2%, fueled by ultralow interest rates, government stimulus, and the explosion of remote work. The Federal Reserve has estimated that to absorb that level of demand, new construction would have had to increase by roughly 300%—a virtual impossibility given the inelastic nature of housing stock.

But what goes up doesn’t always stay up. Since the peak of that boom in mid-2022, a clear correction has taken hold in certain markets. While national home prices have remained relatively resilient, some metro areas—particularly those that saw the wildest run-ups—are now experiencing significant declines.

In this article, we break down the 15 housing markets with the biggest home price drops since the pandemic boom ended. We rely on the latest data from ResiClub, led by housing analyst Lance Lambert, and look at how these markets are recalibrating after the frenzy.

Why Some Markets Are Falling Faster Than Others

Not all housing markets are created equal. During the pandemic, certain metros saw home prices skyrocket by 70% or more, far outpacing the national average. These markets typically had a few things in common: high amenity appeal (think warm weather, beaches, or mountain views), rapid population inflows, and a heavy reliance on second-home buyers and remote workers.

When mortgage rates more than doubled and the economy began to cool, those same markets became the most vulnerable. Buyers pulled back, inventory started to pile up, and prices began to slide.

The 15 markets on this list represent the sharpest corrections from the pandemic peak. All data points come directly from ResiClub’s analysis.

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1. Naples, Florida – The Biggest Drop of All

• Peak-to-current price decline: One of the steepest in the nation
• Pandemic run-up: +73% (among the highest nationally)

Naples, the Gulf Coast haven for retirees and luxury buyers, saw its home prices explode by 73% during the boom. That was more than double the national average. But since the peak, Naples has also posted the largest price decline of any major U.S. metro. The combination of inflated prices, rising insurance costs, and a slowdown in second-home demand is driving the correction.

2. Austin, Texas – The Tech Hub Correction

• Peak-to-current price decline: Significant, among the top five nationally
• Pandemic run-up: +73%

Austin was the poster child of the pandemic boom. Remote workers flooded in from California and the Northeast, pushing prices into the stratosphere. But as interest rates rose and tech layoffs mounted, the momentum reversed. Austin’s home prices have fallen sharply from their mid-2022 peak, though they remain well above pre-pandemic levels.

3. Punta Gorda, Florida – A Smaller Market Hit Hard

• Peak-to-current price decline: Among the steepest in the nation
• Pandemic run-up: Exceeded 70%

Punta Gorda is a smaller market on Florida’s Gulf Coast that saw a massive run-up during the boom. The area’s affordability (relative to Naples or Sarasota) attracted a wave of buyers. But the correction has been just as dramatic, with prices dropping faster than many larger metros.

4. Boise, Idaho – The Overheated Inland West

• Peak-to-current price decline: Double-digit percentage drop
• Pandemic run-up: Roughly 60–70%

Boise became a pandemic darling for remote workers seeking lower costs and mountain access. Prices soared. But as rates rose and competition cooled, Boise’s market turned. The city now ranks as one of the most corrected markets in the country.

5. Phoenix, Arizona – The Sun Belt Slowdown

• Peak-to-current price decline: Notable, among the top 10 nationally
• Pandemic run-up: Around 50–60%

Phoenix was another major beneficiary of the pandemic migration boom. Prices shot up, and the market became one of the hottest in the country. Now, the correction is underway, though Phoenix’s larger economy and population base have cushioned the fall slightly compared to smaller markets.

6. Las Vegas, Nevada – From Boom to Bust Cycle

• Peak-to-current price decline: Significant
• Pandemic run-up: Around 45–55%

Las Vegas has historically been one of the most volatile housing markets in the U.S. The pandemic boom was no exception. Prices surged, then began to fall as interest rates climbed. The market remains vulnerable to further declines if the economy weakens further.

7. Tampa, Florida – The Gulf Coast Correction Spreads

• Peak-to-current price decline: Noticeable, in the top 15
• Pandemic run-up: Around 50–60%

Tampa’s housing market was red-hot during the pandemic, driven by out-of-state buyers and a strong job market. But as the boom faded, prices started to slide. The region is now seeing more inventory and longer days on market.

8. Salt Lake City, Utah – The Mountain West Adjusts

• Peak-to-current price decline: Double-digit percentage drop
• Pandemic run-up: Around 50–60%

Salt Lake City experienced a massive price surge as remote workers moved to the Wasatch Front. But rising mortgage rates and a cooling economy have brought prices down. The market is still higher than before the pandemic, but the correction has been sharp.

9. Denver, Colorado – The Front Range Pullback

• Peak-to-current price decline: Moderate but notable
• Pandemic run-up: Around 40–50%

Denver’s housing market has long been expensive relative to local incomes. The pandemic added fuel to the fire. Now, prices are falling, though Denver’s strong economy and population growth are helping to prevent a steeper decline.

10. Sacramento, California – The Inland Affordability Play

• Peak-to-current price decline: In the top 15 nationally
• Pandemic run-up: Around 40–50%

Sacramento became a popular alternative to the Bay Area during the pandemic, as remote workers sought lower housing costs. But the correction has hit the area, with prices falling from their peak. The market remains more affordable than coastal California, but the decline has been noticeable.

11. Orlando, Florida – Theme Park Turmoil?

• Peak-to-current price decline: Among the top 15
• Pandemic run-up: Around 40–50%

Orlando’s housing market benefited from both domestic migration and a rebound in tourism. But as the boom ended, prices began to slip. The city’s reliance on the hospitality sector makes it more sensitive to economic slowdowns.

12. Raleigh, North Carolina – The Research Triangle Retreat

• Peak-to-current price decline: Moderate but in the top 20
• Pandemic run-up: Around 40–50%

Raleigh was a major beneficiary of the tech and life sciences boom, with companies expanding into the region. But the housing market correction has caught up, with prices falling from their peak. The area’s strong job market is helping to limit the damage.

13. Nashville, Tennessee – Music City Hits a Sour Note

• Peak-to-current price decline: Noticeable
• Pandemic run-up: Around 45–55%

Nashville’s housing market boomed during the pandemic, driven by in-migration and a hot economy. But as rates rose, prices fell. The city remains a popular destination, but the correction has been real.

14. Charlotte, North Carolina – The Banking Hub Slowdown

• Peak-to-current price decline: In the top 20
• Pandemic run-up: Around 40–50%

Charlotte’s housing market has been one of the strongest in the Southeast for years. The pandemic accelerated price growth, but the correction has now arrived. The city’s diversified economy is helping to soften the blow.

15. Atlanta, Georgia – The Southeast Giant Adjusts

• Peak-to-current price decline: Notable but less severe than Florida or Texas
• Pandemic run-up: Around 35–45%

Atlanta’s massive housing market saw significant price gains during the pandemic. While the correction has been less dramatic than in some smaller markets, prices have still fallen from their peak. The region’s strong job growth and affordability relative to the coasts are providing support.

What This Means for Buyers and Sellers

For Buyers

If you’re looking to buy in one of these corrected markets, you may find more negotiating power and less competition than a year ago. Inventory is rising, and price cuts are becoming more common. However, mortgage rates remain elevated, so affordability is still a challenge.

For Sellers

If you’re selling in a market that has seen significant price declines, you’ll need to be realistic about pricing. Stale listings that overstay their welcome are becoming more common. Working with an agent who understands the local correction dynamics is critical.

For Investors

Markets like Naples, Austin, and Boise were among the hottest during the boom. Now, they’re offering potential entry points for long-term investors. But don’t expect a quick bounceback. The correction may take another year or more to fully play out.

The Bottom Line

The pandemic housing boom was unprecedented in its speed and magnitude. The correction we’re seeing now is also notable—particularly in the markets that overheated the most.

Nationally, U.S. home prices remain well above pre-pandemic levels. But in these 15 markets, the correction is real, and in some cases, steep. For buyers, it may be an opportunity. For sellers, it’s a reality check.

Keep an eye on these markets in 2025 and beyond. If interest rates come down, demand could return. But if the economy weakens further, we could see even more price declines.

Want more data-driven insights on housing trends? Subscribe to ResiClub for Lance Lambert’s ongoing analysis of the U.S. housing market.