3 Underrated Cities Where Home Prices Are Expected To Drop in 2026

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After a flat 2025, Zillow predicts home prices will increase by 2% nationwide in 2026. 

That doesn’t mean every city in the country will see 2% growth, of course. Some could see prices leap by 10%, while other cities could drop 5% in price. 

If you’re thinking about moving to a new city and buying an affordable home in 2026, consider these underrated cities expected to see a short-term dip in prices in 2026. 

Also see 20 housing markets on shaky ground heading into 2026.

San Antonio

Despite enjoying some of the fastest population growth in the U.S., San Antonio overbuilt on housing supply. That has kept its average home value affordable at $245,985 — over 31% lower than the national average of $359,241. 

It could also take another year or so for population growth to catch up with all that new supply, leading to a projected dip in home prices of 0.2% over the next year. Residents who make the move can look forward to its strong local economy, diverse local food scene, warm weather and no state income tax.

Corpus Christi, Texas

Roughly two hours south of San Antonio lies the coastal city of Corpus Christi, with its abundant beaches and waterfront recreation. 

In addition to the year-round warm weather, it features minimal traffic but plenty of big-city amenities. Home prices average just $216,910, and Zillow forecasts them to decline 1.3% over the next 12 months. 

Just beware that the city does see its share of hurricanes — and the homeowners insurance premiums reflect that risk. 

Minneapolis

No one ever accused Minneapolis of having a mild climate, but it offers other charms. The city features a vibrant food and cultural scene, from museums to live music. Residents also enjoy plenty of parks and green spaces for outdoor recreation. 

With an average home price of $316,531, housing remains more affordable than the nationwide average. And Zillow expects those home prices to fall another 0.1% over the next year to boot.

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