10 Cities Where Home Prices Are Expected to Drop the Most in 2025

The U.S. housing market is currently experiencing one of its worst downturns in over 30 years, with historically low home turnover in 2024. However, there are opportunities on the horizon. Using data from multiple sources, GOBankingRates has identified 10 cities where home prices are expected to drop the most in 2025. Midsize cities held the majority of spots on the list, including, Hobbs, N.M., where prices are expected to drop by 10%; Lake Charles, La., where it's anticipated that prices will drop by 9.6%; and Houma, La., where prices should drop by 7.8%.

It’s no secret that the American housing market is in a deep slump, with The New York Times recently reporting that the country is locked in an unprecedented housing crisis that is the worst in decades. In fact, CNN has reported that only 2.5% of homes in the United States were sold from the previous homeowner to a new one in the first eight months of 2024, which adds up to the absolute lowest home turnover rate in the last 30 years. Read more