15 Housing Markets That Could Plummet This Year
Real estate is supposed to be one of the best returns on alternative investments you can put money into. Sure, you have to save quite a bit just to drop anywhere from 5% to 20% as a down payment, but once you do, you can stop paying rent and start watching your property appreciate, right? Well, not necessarily so fast.
Unfortunately, there are still plenty of housing markets across the country where you might actually see your property value plummet. In fact, according to MoneyLion’s new research, buying a home in 2026 isn’t a sure-fire, stable investment.
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Depending on where you are looking to move or buy a place, 14 out of the 15 markets on this list of potential buyer’s remorse are in southern states. Texas has the most representation with four cities in this ranking, proving that everything may be bigger in Texas except for the appreciation in your home’s value.
Here are the 15 housing markets in the U.S. that could take a serious dip this year (ranked according to expected drop in value).
1. Greenville, Mississippi
Average home value in December 2025: $45,538
Average home value in January 2026: $44,900
Average home value in March 2026: $44,217
Estimated value in December 2026: $39,026
Value drop in one year: -14.30%
2. Helena, Arkansas
Average home value in December 2025: $48,721
Average home value in January 2026: $48,185
Average home value in March 2026: $47,454
Estimated value in December 2026: $43,995
Value drop in one year: -9.70%
3. Clarksdale, Mississippi
Average home value in December 2025: $43,448
Average home value in January 2026: $43,187
Average home value in March 2026: $42,796
Estimated value in December 2026: $39,320
Value drop in one year: -9.50%
4. Pecos, Texas
Average home value in December 2025: $160,014
Average home value in January 2026: $160,014
Average home value in March 2026: $158,573
Estimated value in December 2026: $144,812
Value drop in one year: -9.50%
5. Middlesborough, Kentucky
Average home value in December 2025: $84,232
Average home value in January 2026: $83,306
Average home value in March 2026: $82,716
Estimated value in December 2026: $77,325
Value drop in one year: -8.20%
6. Cleveland, Mississippi
Average home value in December 2025: $116,887
Average home value in January 2026: $116,302
Average home value in March 2026: $116,068
Estimated value in December 2026: $107,653
Value drop in one year: -7.90%
7. Zapata, Texas
Average home value in December 2025: $120,997
Average home value in January 2026: $121,118
Average home value in March 2026: $120,029
Estimated value in December 2026: $112,043
Value drop in one year: -7.40%
8. Opelousas, Louisiana
Average home value in December 2025: $128,935
Average home value in January 2026: $128,162
Average home value in March 2026: $127,775
Estimated value in December 2026: $119,781
Value drop in one year: -7.10%
9. Hobbs, New Mexico
Average home value in December 2025: $185,385
Average home value in January 2026: $186,127
Average home value in March 2026: $184,829
Estimated value in December 2026: $172,223
Value drop in one year: -7.10%
10. Bennettsville, South Carolina
Average home value in December 2025: $99,104
Average home value in January 2026: $99,303
Average home value in March 2026: $98,411
Estimated value in December 2026: $92,365
Value drop in one year: -6.80%
11. Alice, Texas
Average home value in December 2025: $123,069
Average home value in January 2026: $122,700
Average home value in March 2026: $122,700
Estimated value in December 2026: $114,947
Value drop in one year: -6.60%
12. Big Spring, Texas
Average home value in December 2025: $136,964
Average home value in January 2026: $137,785
Average home value in March 2026: $137,785
Estimated value in December 2026: $128,609
Value drop in one year: -6.10%
13. DeRidder, Louisiana
Average home value in December 2025: $182,860
Average home value in January 2026: $182,860
Average home value in March 2026: $181,946
Estimated value in December 2026: $172,620
Value drop in one year: -5.60%
14. Houma, Louisiana
Average home value in December 2025: $176,503
Average home value in January 2026: $176,327
Average home value in March 2026: $175,974
Estimated value in December 2026: $166,795
Value drop in one year: -5.50%
15. Johnston, Pennsylvania
Average home value in December 2025: $102,465
Average home value in January 2026: $102,568
Average home value in March 2026: $102,158
Estimated value in December 2026: $96,830
Value drop in one year: -5.50%
Methodology: For this study, MoneyLion analyzed housing markets to find the estimated average single-family home value in one year. Using data from the Zillow Home Value Index, the average home value for December 2025 was identified for each housing market. Using data from Zillow Home Value Forecast, the estimated percent change in home value for one month, three months, and one year was identified for each housing market. Using the current average home value and the percent change in home values, the estimated average home value change in one month, three months, and one year was calculated for each housing market. The housing markets were sorted to show the largest decline in estimated average home value after one year. All data is up to date as of Feb. 13, 2025.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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