Housing Market Analysis Shows Price Declines in 27 Major US Cities, Gains in Five

In March 2026, mid-tier home prices declined from previous peaks in 27 of 33 major expensive U.S. cities, with Austin, Oakland, and New Orleans experiencing the steepest drops. Five cities—New York City, Chicago, Philadelphia, Minneapolis, and Omaha—reached new highs, though growth has slowed compared to 2021-2022. San Francisco's housing market reflects a 'mansion shortage' driven by highly paid AI sector employees, pushing up mid-tier prices despite overall employment declines. The analysis uses Zillow's Home Value Index, requiring cities to have reached at least $300,000 in mid-tier home values. Boston's March data remained inconclusive, with prices slightly below April 2025's peak. Earlier price surges, such as Austin's 62% increase between mid-2021 and mid-2022, were fueled by Federal Reserve policies and low mortgage rates. Los Angeles prices have returned to March 2022 levels after three years of fluctuation.