Across the U.S., home inventory is way up, helping level the playing field — to an extent — for buyers. In the South, inventory was up nearly 30% in June, according to a report by Realtor.com. Thanks in part to the inventory boost, home prices in some Southern areas are softening.
Check Out: 7 Cities With Homes Expected To Plummet in Value in the Second Half of 2025
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In May, Zillow economists published their updated 12-month forecast and found that among the 300 largest U.S. metro area housing markets, the South is expected to see the weakest home appreciation between April 2025 and April 2026. These are the 10 cities in the South where home values are anticipated to drop the most over the next eight months.
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10. Odessa, Texas
Average home value in June 2025: $246,357
Projected decrease in value by April 2026, percentage: -5.3%
Projected decrease in value, in dollars: $13,057
Learn More: 5 Types of Homes Expected To Plummet in Value by the End of 2025
9. Monroe, Louisiana
Average home value in June 2025: $148,050
Projected decrease in value by April 2026, percentage: -5.5%
Projected decrease in value, in dollars: $8,142
8. Midland, Texas
Average home value in June 2025: $326,734
Projected decrease in value by April 2026, percentage: -6.1%
Projected decrease in value, in dollars: $19,930
7. Beaumont, Texas
Average home value in June 2025: $163,426
Projected decrease in value by April 2026, percentage: -6.2%
Projected decrease in value, in dollars: $10,132
6. Shreveport, Louisiana
Average home value in June 2025: $135,592
Projected decrease in value by April 2026, percentage: -6.9%
Projected decrease in value, in dollars: $9,356
5. Lafayette, Louisiana
Average home value in June 2025: $222,435
Projected decrease in value by April 2026, percentage: -7%
Projected decrease in value, in dollars: $15,570
4. New Orleans
Average home value in June 2025: $247,205
Projected decrease in value by April 2026, percentage: -7.1%
Projected decrease in value, in dollars: $17,552
3. Alexandria, Louisiana
Average home value in June 2025: $134,427
Projected decrease in value by April 2026, percentage: -7.5%
Projected decrease in value, in dollars: $10,082
2. Lake Charles, Louisiana
Average home value in June 2025: $204,918
Projected decrease in value by April 2026, percentage: -8.4%
Projected decrease in value, in dollars: $17,213
1. Houma, Louisiana
Average home value in June 2025: $190,322
Projected decrease in value by April 2026, percentage: -10.2%
Projected decrease in value, in dollars: $19,413
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This article originally appeared on GOBankingRates.com: 10 Southern Cities Where Home Prices Will Plummet by 2026
