W
orried about the housing market? You're in the right place. Home values are forecast to dip 1.4% nationwide, with some cities facing steeper drops. We've analyzed the latest forecasts to identify the 20 riskiest or worst housing markets where prices could tumble or crash between now and May 2026.

    Several factors contribute to potential market corrections:

    * Rising inventory: More homes on the market give buyers leverage to negotiate lower prices.

    * Elevated mortgage rates: High borrowing costs, driven by the Federal Reserve's efforts to combat inflation, make buying a home more expensive and can lead to price drops in areas with stretched affordability.

    * Labor market concerns: Economic uncertainty and potential job losses can make people hesitant to buy homes.

    * Rental market shifts: New construction is driving up vacancy rates and slowing rent growth, which can indirectly affect the housing market.

    The following analysis is based on Zillow's projections for Metropolitan Statistical Areas (MSAs), which are regions with a population of 50,000 or more. Here's a breakdown of the data used:

    * Market: The specific MSA.

    * Area Type: Metropolitan Statistical Area.

    * State: The state where the MSA is located.

    * Base Date: Represents the starting month for price level change.

    * Price Change Projection as of June 30, 2025: Projected price change.

    * Price Change Projection as of August 31, 2025: Projected price change.

    * Price Change Projection as of May 31, 2026: Projected price change.

    Here's the list of the 20 worst housing markets on the verge of a big price decline:

    1. Greenville, MS

     * -2.6% (Jun '25)

     * -5.5% (Aug '25)

     * -15.0% (May '26)

    2. Pecos, TX

     * -1.5%

     * -3.8%

     * -14.2%

    3. Clarksdale, MS

     * -3.1%

     * -7.3%

     * -13.6%

    4. Cleveland, MS

     * -2.0%

     * -5.1%

     * -13.4%

    5. Bennettsville, SC

     * -3.0%

     * -6.0%

     * -12.9%

    Some of these markets are particularly vulnerable due to:

    * Economic dependence on a single industry.

    * Population decline.

    * Limited job opportunities.

    * Affordability issues.

    If you're thinking of buying or selling in one of these markets, be realistic about pricing and consider making improvements to make your home more attractive to buyers. Buyers may have more negotiating power, but should also be mindful of the risks involved in buying in a declining market.

    National trends show a nationwide decline of 1.4% in home values, with existing home sales projected to increase by 1.9%. The rental market is also seeing changes, with single-family rents expected to rise by 2.8% and multi-family rents by 1.6%.

    The housing market is always changing, so it's essential to do your homework, consult with real estate professionals, and make informed decisions based on your individual circumstances.

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