Housing market cools as summer ends, with price reductions and tighter inventory creating new challenges for buyers.
The top cities where renting beats buying by $1,000
Realtor.com data shows the median list price per square foot fell for the 10th straight month in August, dropping 1.8% year over year nationwide.
Thirty‑six of the top 50 metro areas posted lower prices, with Austin leading the decline at 8.1%, followed by Tampa at 5.6% and Memphis at 4.1%.
Realtor.com senior economist Jake Krimmel noted that many of these markets — Austin, Tampa, San Antonio, Denver — were pandemic‑era boomtowns that are now correcting after rapid price gains and increased inventory.
Other metros with notable declines include San Antonio (‑3.6%), Denver (‑3.4%), Baltimore (‑3.2%), San Diego (‑2.7%), Orlando (‑2.6%) and Portland, Oregon (‑2.4%).
San Francisco remains an outlier
San Francisco posted a 3.9% year‑over‑year decline in price per square foot, ranking fourth nationally despite a still‑tight market.
Active listings in the city fell 16.3% in July compared with the prior year, compressing supply while the median listing price held at $908,700, a 5.2% drop from the previous year.
Labor market slowdown adds pressure on first‑time buyers
Slower hiring and rising mortgage rates are squeezing affordability, especially for first‑time buyers.
Fewer small, high‑priced homes remain available in San Francisco’s core, while larger, lower‑priced units are emerging in outer suburbs, shifting buyer focus.
Hot housing markets still on the rise
Despite overall price declines, several metros posted annual gains in list price per square foot, led by Providence, R.I. (+9.3%), Indianapolis (+4.4%) and Chicago (+3.6%).
