Falling or flatlining home values can mean different things, good or bad, depending who you are. Either way, it’s happening in the Sunbelt, the Southwestern region known for its warm climate and prosperous economic growth. But the area everyone loves to talk about could return to its former glory, if one economics research firm’s prediction comes to fruition.
“House price inflation is 6% nationally, but that masks a lot of regional variation,” Capital Economics economist Thomas Ryan wrote in an analysis earlier this week. Metropolitan areas such as Allentown, Phila.; Bridgeport, Conn.; Rochester, N.Y.; San Diego; and Los Angeles have all seen their home values rise by double digits (with the exception of the latter, although it’s pretty close). “Conversely, price growth is lackluster, or in some cases even negative in the Sunbelt markets which thrived after the pandemic,” he continued, pointing to Cape Coral, Fla.; New Orleans; and Austin.
