If there’s one word that sums up the last five years for the housing market, it’s “eventful.” From a once-in-a-lifetime global pandemic to shifting weather patterns and the impacts of a new presidency, these seismic changes are playing out in real estate, causing some markets to flourish — and many to plummet.
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Below is a list of four housing markets that have fallen drastically in the last five years.
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Austin, Texas
In the early days of the pandemic, Austin seemed like a city that had everything going for it. In 2022, 64 companies moved headquarters or operations to the Texas city, according to Bloomberg, and development soared as 50,000 new residents moved in between 2022 and 2023, continuing Austin’s streak as one of the country’s fastest-growing cities.
“After the pandemic, it felt like Austin really was built overnight as tech companies like Oracle moved in,” said Alex Blackwood, CEO and co-founder of the real estate investment platform Mogul.
With more companies issuing return-to-work mandates, employees and companies started to flee, leaving a surplus of homes not being filled. And it was a trend Blackwood didn’t see lifting any time in the near future.
“Austin just built way too fast, and there’s not enough major companies moving in to sustain that,” he warned. “The city’s going to be hurting for quite some time.”
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Nashville, Tennessee
The Nashville housing market has experienced a similar trajectory, with more housing units built — a 14% increase year-on-year in 2024 — and insufficient demand.
“Many cities and developers thought the pandemic shift was here to stay, and built entire business plans and road maps around those trends,” said Blackwood. “But those trends didn’t remain, and you saw a massive glut in supply on top of increased interest rates.”
In the future, he predicted the market in Nashville leveling out, bolstered in part by the arrival of Oracle, which relocated their headquarters after leaving Austin, and a robust travel and tourism industry.
San Francisco, California
Few riches-to-rags stories have been as pronounced as San Francisco, which has seen condo prices drop significantly from pre-pandemic levels.
“One reason property values came down so significantly in San Francisco is due to the high level of homelessness,” said Gene Eidelman, the cofounder of Azure Printed Homes. He said California accounts for nearly half of unsheltered people across the U.S.
“Even with return-to-office mandates, many people don’t feel safe walking to work in downtown San Francisco,” Eidelman said.
Miami, Florida
Much of Florida has seen a downturn over the last five years, with Miami, which saw a 12.4% drop in home prices year-over-year in 2024, topping the list. Climate change, said Blackwood , has a lot to answer for.
“The fact Miami is getting shellacked with different hurricanes every year is not great, not to mention the fact that it’s receding inline due to the rising ocean line. Insurance costs have gone through the roof,” he explained.
That and Miami has been in a property bubble for years hasn’t helped,” Blackwood added.
“Things got way too unaffordable way too quickly in Miami,” he said. “Even though they’re trying to bolster job growth, it’s not as good as the Houstons or Dallases of this world.”
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Sources:
Bloomberg, “Plunging Home Prices, Fleeing Companies: Austin’s Glow Is Fading.”
AustinTexas.gov, “New Census Data: Austin Metro Slips from Top Spot, Remains One of the Nation’s Fastest Growing Regions.”
Alex Blackwood, Mogul
Gene Eidelman, Azure Printed Homes
This article originally appeared on GOBankingRates.com: 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years
