10 Southern Cities Where Home Prices Will Plummet by 2026

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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. 

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. 

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

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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