U.S. Housing Market Sees Highest Share of Home Value Declines Since 2012
Over half of U.S. homes lost value in the past year, marking the highest rate of depreciation since the aftermath of the 2008 housing crash. Zillow reports 53% of properties declined—a stark jump from 14% a year ago—with values down 9.7% on average from their peak.
Regional disparities dominate the trend. Midwestern and Northeastern cities bucked the downturn with rising prices, while Southeastern and Western markets dragged the national appreciation rate to NEAR zero. Despite the slump, long-term homeowners retain substantial equity, with median gains at 67% over 8.5 years.
The correction coincides with a 30-year mortgage rate retreat since June and swelling inventory. Notably, 4.1% of homes now trade below their last sale price—a warning sign for recent buyers but a potential entry point for crypto investors diversifying into tangible assets during market volatility.
