10 real estate markets whose values ​​will collapse by the end of 2024

Many real estate markets in the U.S. are currently on the up, but some are set to drop sharply in value, according to experts. This could be helpful if you’re planning a big move or trying to find a cheaper apartment.

Here’s a look at 10 places where experts say a significant drop in real estate prices is imminent.

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San Francisco

In a city that has long been one of the most expensive places to live in the country, prices are now set to fall, says Ben Johnson, real estate agent and CEO of Big Ben.

“The high cost of living, migration and the trend of most technology companies allowing some workers to work from home have caused the San Francisco real estate market to begin to fall,” he said. “Real estate prices in the city could fall an estimated 5 to 10 percent by year’s end.”

According to Zillow, the current average home price is $1,299,639, down 0.3% from last year.

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new York

“Like San Francisco, New York City has seen a decline in real estate values ​​due to the flexible work style forced by the pandemic and the associated high cost of living,” Johnson said. “The rental market is also weakening due to (weaker) demand for residential real estate.”

The average home price in New York is currently $742,930. Johnson said that figure could fall by 5 to 8 percent by the end of the year.

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Honolulu

The average home price in Honolulu is $794,253, but Johnson said that could drop 4 to 6 percent by the end of the year.

“Honolulu’s real estate market is expected to weaken as the tourism industry – a key pillar of the local economy – remains on hold.”

Miami

The average home price in Miami is $579,125, up 8.7% from last year, but Johnson said environmental factors could cause prices to fall 3% to 5% by the end of this year.

“Miami’s real estate market is threatened by overvaluation and steadily rising sea levels, which many real estate investors … see as a reason to avoid Miami’s real estate market. Further increases in insurance and litigation costs due to climate change are making homes unaffordable.”

Las Vegas

“Given how dependent Las Vegas is on tourism and the entertainment industry, and both sectors have been hit hard by the pandemic, there is a high probability that real estate prices in this area will decline,” Johnson said.

Currently, the average home price is $422,880. Johnson said that price is expected to drop 4 to 7 percent by the end of the year.

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Chicago

Johnson blames high property taxes, crime rates and a lack of population growth for the decline in Chicago’s real estate prices. “Chicago’s real estate market could see a decline as population growth stagnates and the city faces financial challenges.”

The average cost of a home in Chicago is $298,397. By the end of 2024, Johnson said, that could fall by 2 to 4 percent.

Seattle

“Both the high cost of living and the tech industry’s shift to remote work are cooling the Seattle market,” Johnson said. “Real estate prices could drop 3 to 5 percent as more people choose not to live in the city.”

For comparison, the average home price in Seattle is currently $884,828.

Austin, Texas

“A recent increase in inventory and new construction projects has balanced the market between buyers and sellers and cooled home prices,” said Eric Preston, CEO and founder of Agent Launch. “This trend is expected to continue for the rest of the year, especially with mortgage rates on the rise. Austin builders are forecasting a higher number of home sales due to the state of the housing market.”

Preston said the median asking price for a home in Austin was $650,000 in May 2024, and the current median sales price was $567,000, but that number could drop closer to $550,000 or lower by year’s end.

Learn more: Real estate market 2024: The 50 cheapest cities for home buyers

St. Louis

Preston said home prices in St. Louis have fallen 2.2% since last year. The median home price in the city is currently $221,000, and Preston predicts that price will drop to $200,000 by year’s end.

“There are usually several factors why a market cools, but St. Louis is experiencing an affordability crisis due to rising taxes in some communities.”

Washington, DC

According to Preston, Washington’s real estate market is expected to decline 10.2% by 2024. “The main reasons for this are a lack of buyers due to mortgage rates and economic problems.”

He said the median home price is $602,000 and could fall another 3 to 5 percent by the end of the year.

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This article originally appeared on GOBankingRates.com: 10 Real Estate Markets That Will Collapse in Value by the End of 2024