10 Southern Cities Where Home Prices Will Plummet by 2026

Across the U.S., home inventory is way up, helping level the playing field — to an extent — for buyers. In the South, inventory was up nearly 30% in June, according to a report by Realtor.com. Thanks in part to the inventory boost, home prices in some Southern areas are softening.

Check Out: 7 Cities With Homes Expected To Plummet in Value in the Second Half of 2025

Read Next: Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why

In May, Zillow economists published their updated 12-month forecast and found that among the 300 largest U.S. metro area housing markets, the South is expected to see the weakest home appreciation between April 2025 and April 2026. These are the 10 cities in the South where home values are anticipated to drop the most over the next eight months.

10. Odessa, Texas

• Average home value in June 2025: $246,357

• Projected decrease in value by April 2026, percentage: -5.3%

• Projected decrease in value, in dollars: $13,057

Learn More: 5 Types of Homes Expected To Plummet in Value by the End of 2025

9. Monroe, Louisiana

• Average home value in June 2025: $148,050

• Projected decrease in value by April 2026, percentage: -5.5%

• Projected decrease in value, in dollars: $8,142

8. Midland, Texas

• Average home value in June 2025: $326,734

• Projected decrease in value by April 2026, percentage: -6.1%

• Projected decrease in value, in dollars: $19,930

7. Beaumont, Texas

• Average home value in June 2025: $163,426

• Projected decrease in value by April 2026, percentage: -6.2%

• Projected decrease in value, in dollars: $10,132

6. Shreveport, Louisiana

• Average home value in June 2025: $135,592  

• Projected decrease in value by April 2026, percentage: -6.9%

• Projected decrease in value, in dollars: $9,356

5. Lafayette, Louisiana

• Average home value in June 2025: $222,435

• Projected decrease in value by April 2026, percentage: -7%

• Projected decrease in value, in dollars: $15,570

4. New Orleans

• Average home value in June 2025: $247,205 

• Projected decrease in value by April 2026, percentage: -7.1%

• Projected decrease in value, in dollars: $17,552

3. Alexandria, Louisiana

• Average home value in June 2025: $134,427

• Projected decrease in value by April 2026, percentage: -7.5%

• Projected decrease in value, in dollars: $10,082

2. Lake Charles, Louisiana

• Average home value in June 2025: $204,918 

• Projected decrease in value by April 2026, percentage: -8.4%

• Projected decrease in value, in dollars: $17,213

1. Houma, Louisiana

• Average home value in June 2025: $190,322

• Projected decrease in value by April 2026, percentage: -10.2%

• Projected decrease in value, in dollars: $19,413

More From GOBankingRates

• 7 McDonald's Toys Worth Way More Today 

• 4 Companies as Much as Tripling Prices Due To Tariffs 

• How Far $750K Plus Social Security Goes in Retirement in Every US Region 

• 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth

This article originally appeared on GOBankingRates.com: 10 Southern Cities Where Home Prices Will Plummet by 2026