Realtors Predict House Prices Will Plummet in These 8 Cities by 2027

For anyone considering a move to a new city next year, staying on top of local real estate trends is a smart homeowner move. That's especially true for retirees or soon-to-be retirees seeking out a more affordable locale. Luckily, housing prices in some cities might fall by 2027.

This guide explores which cities might see falling housing prices by 2027, according to real estate agents.

Editor's note: All housing data comes from Zillow, unless otherwise stated.

Austin, Texas

Average home price: $511,264

Austin has built a reputation as a lively city full of live music and quirky food options. While it may remain a great place to live, home prices might be set to take a tumble soon.

"The market already started correcting, and I think there's still downside left if tech hiring stays weak and inventory continues building," says Andrew Gardner, founder of Sell to Leap, a real estate company in the Houston area.

Phoenix, Arizona

Average home price: $411,323

Phoenix saw an influx of residents in recent years, pushing home prices higher. But the explosion of home prices might not be sustainable, according to Gardner.

"Markets that rise that quickly usually do not flatten gently," Gardner noted.

Houston, Texas

Average home price: $265,062

"People may be surprised to hear Houston on the list, but I actually think certain outer-ring Houston suburbs could soften meaningfully by 2027," Gardner remarked.

Generally, Houston has a rather resilient economy, in part due to job diversity and relatively affordable housing. But as in many cities, the relatively low interest rates of a few years ago allowed more homebuyers to enter the market, pushing prices up.

But in areas popular with long-distance commuters or with a big increase in the housing supply through speculative building, housing prices might trend downward soon.

Boise, Idaho

Average home price: $504,894

"Boise became the poster child for pandemic migration pricing," says Gardner. "The issue is that local wages never really caught up to home values."

With high home prices relative to the average income, homeownership was pushed out of reach for many locals. Since migration to the city is slowing, housing prices may begin to adjust downward to reflect local wages.

Cape Coral, Florida

Average home price: $339,638

With a string of damaging hurricanes in recent years, it's not too surprising to see Cape Coral on this list. Additionally, the fact that many residents are deciding to pull up stakes, leaving a trail of vacant homes in their wake, likely isn't helping the housing market in this once idyllic retirement destination.

"Insurance costs are becoming a second mortgage for some homeowners," Gardner commented.

Omaha, Nebraska

Average home price: $297,017

Although Omaha has boasted a relatively stable market for years, home affordability is becoming an issue here, according to Wyatt Simon, owner and founder of Omaha Home Advisors.

"In case wages do not rise and inventory remains high, then Omaha may experience price correction in the coming years of 2027, particularly those areas that saw rapid increases in price since 2020," says Simon.

Denver, Colorado

Average home price: $541,899

Sky-high housing prices in the Mile High City might see a correction in the coming months.

"I think certain parts of the Denver market may see noticeable price declines by 2027, especially in neighborhoods where buyers pushed affordability to the limit during the ultra-low rate years," says Brett Johnson, real estate investor and owner of New Era Home Buyers. "A lot of sellers still seem anchored to 2021 and early 2022 pricing, even though the math for buyers looks completely different today."

Tampa, Florida

Average home price: $376,530

The bite of rising insurance premiums is becoming an issue for homeowners across the Sunshine State, including those in Tampa.

"Flood insurance costs across NFIP and private markets have doubled, tripled, even quadrupled in many locations," according to Blaz Korosec, licensed realtor and founder of Investorade.

The rising overall cost of owning a home here is putting downward pressure on home prices as fewer buyers are prepared to enter the market.

Bottom line

For anyone seeking a more affordable place to call home, the cities on this list might be more affordable by 2027. While moving to a cheaper place offers one way to save money, it's not the only way. Before jumping into a big move, consider spending at least a week or two in the new city to confirm you could see yourself enjoying it in the long term.