Home prices climbed in 167 of 235 U.S. metro areas, though regional disparities widened sharply. The West experienced the steepest slowdown, with affordability crises pushing buyers out of traditionally hot markets like California and the Pacific Northwest.
The data reveals a market split into winners and losers. Affordable regions in the Midwest and South continue absorbing migration from coastal metros where prices have outpaced local incomes. Markets like Austin, Nashville, and Charlotte saw sustained demand, though appreciation rates moderated from pandemic peaks.
Western metros hit a wall. Cumulative price gains from the last five years left homes unaffordable for median-income households even as mortgage rates stabilized. Buyers exhausted down payment savings or moved to states with lower entry prices and tax advantages. This geographic shift benefited secondary markets while draining buyer activity from expensive coasts.
The split matters for different groups. For sellers in appreciating markets, inventory remains tight. List prices hold firm in 71% of metros. But sellers in stalled Western markets face longer selling timelines and modest price declines after years of double-digit gains.
Buyers encounter opposing conditions. In affordable Sunbelt and Midwest markets, competition remains fierce despite slower price growth. Properties sell quickly but at high multiples of local incomes. Western buyers face an unusual advantage: more inventory and less bidding wars. Prices haven't fallen sharply, but buyers gained negotiating room absent elsewhere.
Renters see less benefit. As owner-occupants flooded secondary markets, investor demand shifted too. Apartment rents in secondary metros like Memphis and Boise pushed higher, offsetting any savings renters might find by leaving expensive cities. The migration simply recreated affordability challenges in new locations.
Landlords in secondary markets profited from the trend. Investor demand for single-family homes and