US Condo Prices Plunge Up to 33% in 24 Major Markets, Some Back to 2006 Levels

Condo prices in 24 major US markets have dropped by 15% to 33% from their peaks between 2021 and 2024, according to data from the Zillow Home Value Index (ZHVI) analyzed by Wolf Richter for WOLF STREET. In two cities, prices fell over 30%; five others saw declines of 20% to 28%; three dropped 19%. Some markets have returned to levels last seen in 2006, 20 years ago. An additional 44 larger cities experienced drops of 7% to 14%. The data covers seasonally adjusted three-month averages of mid-tier condos and co-ops. The analysis includes cities, three counties, and one metropolitan statistical area (Lakeland-Winter Haven, Florida). Condo prices had soared 180% to 350% over the decade leading to the peak, with some markets seeing 50-70% gains from mid-2020 to mid-2022. Factors driving the bust include high prices, special assessments, rising HOA fees, Fannie Mae blacklists, higher mortgage rates, fewer foreign buyers, and competition from new apartment buildings. The report notes that condos are particularly speculative due to investor and foreign buyer activity.