Texas, December 11, 2025
Recent analyses show a significant drop in home values across major Texas metropolitan areas, with Austin suffering the steepest decline. Approximately 89.5% of metro homes lost value over the past year, reflecting trends seen in Dallas, San Antonio, and Houston as well. The overall housing market is showing signs of cooling, affected by increased housing inventory and rising climate risks. As the market shifts, potential buyers and homeowners are encouraged to stay informed about these developments.
Texas Metropolitan Areas See Significant Home Value Declines
Recent analyses indicate a significant decrease in home values across major Texas metropolitan areas, with Austin experiencing the steepest decline among major U.S. cities.
Austin’s Home Values Plummet
In Austin, 89.5% of metro homes lost value over the past year, marking the highest percentage since at least 2012 and second only to Denver nationwide. On average, Austin home values have dropped 20.5% since their peak during the pandemic, the steepest decline among major U.S. metros. Additionally, 12.6% of Austin homes are now listed below their previous sale prices.
Other Texas Metros Affected
Similar trends are evident in other Texas cities. In Dallas, 86.7% of homes have lost value; in San Antonio, 86.3%; and in Houston, 79.6%. These declines reflect a broader regional trend across the West and South, where increased housing inventory and rising climate risks have cooled once white-hot markets.
Factors Contributing to the Decline
The downturn in home values is largely a function of the big run-up during the pandemic. The majority of people in Austin are not going to see that swing in their home values, since they bought before the pandemic.
National Market Shift
Nationally, the market now favors buyers, with a record 37% more sellers than buyers, according to Redfin.
Local Market Indicators
Statewide, Texas had 31,398 monthly sales in July 2025, a 3.3% year-over-year increase, with a median price of $340,000. Dallas-Fort Worth-Arlington led in monthly sales with 8,806, and a median price of $400,000. Houston-Pasadena-The Woodlands followed with 8,308 sales. Other metros showed varied performance, with Odessa seeing a sharp decline of 27.3% year-over-year, while Tyler experienced a 31.1% increase.
Conclusion
The significant decline in home values across Texas metropolitan areas underscores a broader trend affecting the housing market in the West and South. Homeowners and potential buyers should stay informed about these developments to make well-informed decisions in the evolving real estate landscape.
Frequently Asked Questions (FAQ)
What is the current state of home values in Texas metropolitan areas?
Recent analyses indicate a significant decrease in home values across major Texas metropolitan areas, with Austin experiencing the steepest decline among major U.S. cities.
Which Texas cities have seen the most significant declines in home values?
In Austin, 89.5% of metro homes lost value over the past year, marking the highest percentage since at least 2012 and second only to Denver nationwide. On average, Austin home values have dropped 20.5% since their peak during the pandemic, the steepest decline among major U.S. metros. Additionally, 12.6% of Austin homes are now listed below their previous sale prices.
What factors are contributing to the decline in home values?
The downturn in home values is largely a function of the big run-up during the pandemic. The majority of people in Austin are not going to see that swing in their home values, since they bought before the pandemic.
How is the national housing market trending?
Nationally, the market now favors buyers, with a record 37% more sellers than buyers, according to Redfin.
What are the latest local market indicators in Texas?
Statewide, Texas had 31,398 monthly sales in July 2025, a 3.3% year-over-year increase, with a median price of $340,000. Dallas-Fort Worth-Arlington led in monthly sales with 8,806, and a median price of $400,000. Houston-Pasadena-The Woodlands followed with 8,308 sales. Other metros showed varied performance, with Odessa seeing a sharp decline of 27.3% year-over-year, while Tyler experienced a 31.1% increase.
What should homeowners and potential buyers consider in light of these trends?
The significant decline in home values across Texas metropolitan areas underscores a broader trend affecting the housing market in the West and South. Homeowners and potential buyers should stay informed about these developments to make well-informed decisions in the evolving real estate landscape.
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