Zillow’s home value estimate is now dropping in 24 states on a month-over-month basis, and in 15 states on a year-over-year basis, as of their August 2025 update. More broadly – home values are going down in half of the U.S. Housing Market, with the Sun Belt and West region experiencing declines. Access the data on home values for your area at https://www.reventure.app.
But will home prices crash in these states where values are dropping? And will we see the price downturn spread to other areas? Data on Reventure App projects that home values across the U.S. housing market will decline by -1.3% over the next 12 months, with some states dropping as much as -6.5%. Indicating widespread weakness spreading across the housing market, but that an outright crash nationally in the next 12 months is unlikely.
States such as Florida, Texas, and Arizona have the biggest decline in values over the last year, as well as the biggest downward forecast. While states lik New York and Connecticut still have an upward lift on home prices.
Interestingly, Zillow has revised up their 2026 home value forecast to +1.2%, due to a shortage of new listings hitting hte market.