The U.S. housing market has seen major changes over the past 25 years, from the housing boom of the early 2000s to the Great Recession crash and record price surges during the COVID-19 pandemic. While some areas have seen dramatic price swings, others have managed to remain stable over the years. Construction Coverage analyzed major housing markets across the U.S. to determine which areas have remained the most stable despite varying economic conditions.
On a statewide basis, South Dakota, Oklahoma, Alaska, Iowa, and Vermont came out on top, having never experienced a median home price drop of more than 5% in the past 25 years. Among the largest metros, however, Buffalo, N.Y., Oklahoma City, Okla., and Pittsburgh have been the most stable, never experiencing a 5% or greater price drop since 2000.
The contrast between Buffalo, NY, and Las Vegas, NV highlights how housing markets can differ dramatically in their stability and susceptibility to price swings. Buffalo has been the most stable large metro in the U.S., with a 0% chance of a homebuyer experiencing a price drop greater than 5% since 2000. The area’s largest recorded decline was just 2.9% ($3,659), and home prices have steadily appreciated by 203% over the past 25 years, reaching a median price of $258,121 today. Buffalo’s stability is likely driven by slow but steady economic growth, lower housing demand volatility, and less speculative investing compared to other metros.
In stark contrast, Las Vegas has been the most volatile large metro, with a 48.5% probability of a 5% or greater price drop and a 63.9% peak-to-trough decline, amounting to a staggering $210,860 loss in home value. Read more