--- title: 10 Cities Where the Housing Costs Are Cooling Off Fast description: Home prices remain inflated, but that's starting to change, with monthly costs dropping in housing markets like Austin and Seattle. authors: - name: Brenden Rearick role: Reporter url: https://money.com/author/brenden-rearick/ bio: Brenden Rearick is a former news reporter at Money who specialized in mortgages, real estate, and personal finance topics. education: University of Pittsburgh, BA at_money_since: 2023 articles: 133 covers: - Housing - Banking - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology former_staff: true editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2023-05-03T14:07:10.000Z' modified: '2024-01-10T14:46:58.000Z' section: Housing tags: - News word_count: 553 canonical: https://money.com/cities-housing-market-costs-cooling/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Picture of Seattle](https://img.money.com/2023/05/News-10-cities-cheaper-homes.jpg) *Seattle, Washington* No one would say the [housing market](https://money.com/buyers-sellers-housing-market-pessimism/) is full of deals at the moment. Home prices and [mortgage rates](https://money.com/current-mortgage-rates/) alike are high enough to make buyers' eyes water. But in some major markets, costs are finally retreating and buyers are able to pay less than they would have a year ago. A new [study](https://www.redfin.com/news/homes-cost-less-than-year-ago-2023/) from real estate brokerage Redfin shows that the median home price in the U.S. saw a year-over-year decline of over 3% in March. Yet thanks to today's mortgage rates, the typical monthly payment for a home purchase is [unaffordable for many buyers](https://money.com/housing-affordability-lowest-level-in-history/) — so they aren’t really noticing the cooling. However, the research also points to several markets where costs are deflating at a much faster pace. Redfin's study shows that housing prices — and costs in general — are starting to come down in many markets. The analysis compares housing prices and mortgages in March 2023 with estimates calculated using price per square foot trends and mortgage rates from March of 2022. The research shows median home prices declined 3.3% year-over-year in March 2023, which the company says is the largest annual decline in over a decade. However, there are a number of outliers that are seeing much faster cooling than the average — mainly in pandemic boomtowns and coastal cities where home prices soared from 2020 to 2022. Austin, Texas, which saw [massive real estate price spikes](https://money.com/cities-remote-workers-increase-home-prices/) in the wake of the pandemic, tops Redfin's list with almost 26% of house listings selling at lower monthly costs than last year. Here are the 10 cities ranked by the percentage of houses listed for lower monthly costs than last year, according to Redfin: 1. Austin, Texas 2. [Seattle, Washington](https://money.com/best-places-to-travel/seattle-washington/) 3. San Francisco, California 4. New York, New York 5. Pittsburgh, Pennsylvania 6. Philadelphia, Pennsylvania 7. Memphis, Tennessee 8. Cape Coral, Florida 9. Oakland, California 10. San Jose, California ## Affordability still a problem for many buyers As Redfin is quick to note in its report, “‘more affordable’ doesn’t mean ‘affordable.’’ In five of the top 10 markets listed, median listing prices exceed $500,000, and in coastal hubs like San Jose and San Francisco, median prices are still well over $1 million. Moreover, the data shows that one major contributing factor to these price trends are luxury home prices being lowered. Across the luxury home market, 17% of listings have seen lowered monthly payment costs since last year, as compared to just 5.2% of homes in the $250,000 to $500,000 range. So, buyers on tighter budgets may not be noticing the price declines nearly as much as the wealthiest potential buyers. In some ways, the report does allow homebuyers to breathe a sigh of relief. Housing prices are slowly but surely on the decline. However, there’s still a [dearth of home listings](https://money.com/mortgage-rates-few-homes-for-sale/) on the market that these buyers must reckon with. That's largely because of the [Fed’s interest rate hikes](https://money.com/mortgage-rates-affect-housing-market-seasonality/) driving mortgage rates far above the favorable pandemic-era rates many homeowners are loath to let go of. And many buyers will be slow to move even on this low inventory of houses because in many cities, slightly smaller prices aren’t low enough to offset persistently high mortgage rates. [Here's Where Home Prices Are Heading This Summer, According to Experts](https://money.com/where-home-prices-heading-summer-2023/) [9 Best Home Equity Loans of May 2023](https://money.com/best-home-equity-loans/) [Current Mortgage Rates are Still Rising](https://money.com/current-mortgage-rates/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/cities-housing-market-costs-cooling/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Prices", "item": "https://money.com/home-prices/" }, { "@type": "ListItem", "position": 4, "name": "10 Cities Where the Housing Costs Are Cooling Off Fast" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/cities-housing-market-costs-cooling/#webpage", "url": "https://money.com/cities-housing-market-costs-cooling/", "name": "10 Cities Where the Housing Costs Are Cooling Off Fast", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-05-03T14:07:10.000Z", "mainEntity": { "@id": "https://money.com/cities-housing-market-costs-cooling/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/cities-housing-market-costs-cooling/#breadcrumb" }, "dateModified": "2024-01-10T14:46:58.000Z" }, { "@type": "NewsArticle", "headline": "10 Cities Where the Housing Costs Are Cooling Off Fast", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/05/News-10-cities-cheaper-homes.jpg", "width": 2880, "height": 1920, "caption": "News-10-cities-cheaper-homes" } ], "author": [ { "@type": "Person", "name": "Brenden Rearick", "url": "https://money.com/author/brenden-rearick/", "@id": "https://money.com/author/brenden-rearick/#author", "description": "Brenden Rearick is a former news reporter at Money who specialized in mortgages, real estate, and personal finance topics.\r\n\r\n", "email": "brenden.rearick@money.com", "alumniOf": "University of Pittsburgh, BA" } ], "publisher": "https://money.com/#organization", "datePublished": "2023-05-03T14:07:10.000Z", "description": "Home prices remain inflated, but that's starting to change, with monthly costs dropping in housing markets like Austin and Seattle.", "abstract": "Home prices remain inflated, but that's starting to change, with monthly costs dropping in housing markets like Austin and Seattle.", "@id": "https://money.com/cities-housing-market-costs-cooling/", "inLanguage": "en-US", "dateModified": "2024-01-10T14:46:58.000Z", "editor": [ { "@type": "Person", "name": "Brad Tuttle", "url": "https://money.com/author/brad-tuttle/", "@id": "https://money.com/author/brad-tuttle/#author", "description": "Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals.\r\n\r\n", "image": "https://img.money.com/2014/01/Brad-Tuttle.png?w=226&h=247&crop=1", "alumniOf": "Columbia University School of Journalism, MS", "sameAs": [ "https://twitter.com/bradrtuttle", "https://linkedin.com/in/brad-tuttle-834b225" ] } ], "wordCount": 553, "keywords": [ "News" ], "about": [ { "@type": "Thing", "name": "Housing in the United States", "sameAs": [ "https://en.wikipedia.org/wiki/Housing_in_the_United_States" ] }, { "@type": "Thing", "name": "Real estate economics", "sameAs": [ "https://en.wikipedia.org/wiki/Real_estate_economics" ] }, { "@type": "Thing", "name": "Housing market", "sameAs": [ "https://en.wikipedia.org/wiki/Housing_market" ] } ] } ] } ```