9 Midwest Cities Where Home Prices Are Expected To Drop in 2026
Written by
Lydia Kibet
Edited by
Jenna Klaverweiden
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If you’ve been following the U.S. housing market closely, it’s fair to wonder what 2026 will look like. Mortgage rates are lower than they were at their recent peak. According to Freddie Mac, the average rate for a 30-year fixed mortgage was 6.16% as of Jan. 8, and many are wondering where they’ll go for the remainder of 2026. But what will happen to home prices?
Zillow’s latest outlook forecasts a modest rise of about 1.2% in home values, citing steady buyer demand and improved affordability. With that in mind, here are some cities in the Midwest where home values are expected to drop in 2026.
Midwest Cities Where Home Prices Are Likely To Decline
The Midwest is growing popular among Americans looking to become homeowners. The region is recognized for its affordability. In fact, Zillow noted that the Midwest dominates its top 10 ranking of most popular housing markets as more shoppers prioritize affordability over costly coastal metros. Most of the top 10 Midwest markets have home prices averaging under $350,000 with growing communities and job access.Â
However, these cities’ home prices are expected to decline this year, according to Zillow’s latest housing data.
1. Kennett, Missouri
- Projected change: -3.7%
2. Sikeston, Missouri
- Projected change: -1.3%
3. Macomb, Illinois
- Projected change: -1.3%
4. Fort Madison, Iowa
- Projected change: -0.9%
5. Burlington, Iowa
- Projected change: -0.5%
6. Williston, North Dakota
- Projected change: -0.5%
7. Jacksonville, Illinois
- Projected change: -0.3%
8. Jamestown, North Dakota
- Projected change: -0.2%
9. Minneapolis
- Projected change: -0.1%
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