Real Estate

The Housing Slowdown Is Hitting These Cities Hardest

Downtown Seattle, Pier 66; both the city proper and the metro area of Seattle have been significantly impacted by the slowing housing market.


Across the U.S., housing markets have been gripped by a general cooling-off after years of surging home values and sales. Such a development is only natural, but it often impacts cities very unevenly, with some housing markets feeling the slowdown to a much more serious degree than others.

By looking at year-over-year changes in home values from Zillow and available for-sale inventory from Redfin, we identified the cities most affected by the recent cool-down. Find out which cities have been most severely impacted by the recent housing slowdown.


The city of Seattle and the metro overall have been particularly hard hit by the slowing housing market. According to Redfin data, available housing inventory in Seattle rose from 1,064 in May 2018 to 2,175 in May 2019, an increase of over 100%. For the Seattle metro area overall, the increase in inventory is smaller, though substantial: from 5,257 available homes for sale in May 2018 to 7,675 in May 2019, an increase of 46% year-over-year.

Meanwhile, home values, according to Zillow, dropped by 4.5% over the last year, and are projected to fall by 3.8% in the next year.

Cities throughout the Seattle metro area have been adversely affected, some more seriously than the city of Seattle. For example, the bedroom community of Lake Forest Park north of Seattle has seen home values drop by 5.3% over the last year, and are expected to fall by another 3.9% in the coming year. Shoreline, another Seattle suburb, has seen home values decline by 5.1% year-over-year, and its projected future decline — 4.4% — is steeper than both Lake Forest Park and Seattle.

Take a look below at all the cities in the Seattle metro area that have experienced absolute declines in home value from 2018 to 2019.

City State Metro Past Year Change (%) May 2018
Median Home Value
May 2019
Median Home Value
Lake Forest Park WA Seattle-Tacoma-Bellevue -5.30% $692,300 $655,600
Shoreline WA Seattle-Tacoma-Bellevue -5.12% $597,200 $566,600
Seattle WA Seattle-Tacoma-Bellevue -4.5% $751,700 $717,800
Vashon WA Seattle-Tacoma-Bellevue -4.49% $632,400 $604,000
Issaquah WA Seattle-Tacoma-Bellevue -4.42% $741,400 $708,600
Newcastle WA Seattle-Tacoma-Bellevue -4.20% $848,000 $812,400
Kirkland WA Seattle-Tacoma-Bellevue -3.46% $743,700 $718,000
Black Diamond WA Seattle-Tacoma-Bellevue -3.37% $442,600 $427,700
North Bend WA Seattle-Tacoma-Bellevue -2.44% $570,400 $556,500
Redmond WA Seattle-Tacoma-Bellevue -2.40% $852,600 $832,100
Woodinville WA Seattle-Tacoma-Bellevue -2.32% $806,600 $787,900
Kenmore WA Seattle-Tacoma-Bellevue -2.29% $667,900 $652,600
Sammamish WA Seattle-Tacoma-Bellevue -2.27% $925,400 $904,400
Renton WA Seattle-Tacoma-Bellevue -2.00% $470,600 $461,200
Duvall WA Seattle-Tacoma-Bellevue -1.96% $621,400 $609,200
Burien WA Seattle-Tacoma-Bellevue -1.86% $429,600 $421,600
Des Moines WA Seattle-Tacoma-Bellevue -1.76% $385,400 $378,600
Bellevue WA Seattle-Tacoma-Bellevue -1.65% $928,100 $912,800
Yarrow Point WA Seattle-Tacoma-Bellevue -1.59% $2,766,900 $2,722,800
Maple Valley WA Seattle-Tacoma-Bellevue -1.49% $468,400 $461,400
White Center WA Seattle-Tacoma-Bellevue -1.39% $424,000 $418,100
Edmonds WA Seattle-Tacoma-Bellevue -1.22% $613,600 $606,100
East Hill-Meridian WA Seattle-Tacoma-Bellevue -1.15% $409,700 $405,000
Bryn Mawr-Skyway WA Seattle-Tacoma-Bellevue -1.13% $441,700 $436,700
Normandy Park WA Seattle-Tacoma-Bellevue -1.09% $677,000 $669,600
Carnation WA Seattle-Tacoma-Bellevue -1.03% $609,200 $602,900
Woodway WA Seattle-Tacoma-Bellevue -1.01% $1,481,500 $1,466,500
Mountlake Terrace WA Seattle-Tacoma-Bellevue -1.01% $447,100 $442,600
Bothell WA Seattle-Tacoma-Bellevue -1.00% $609,600 $603,500
Covington WA Seattle-Tacoma-Bellevue -0.97% $391,500 $387,700
Snoqualmie WA Seattle-Tacoma-Bellevue -0.88% $679,900 $673,900
Ravensdale WA Seattle-Tacoma-Bellevue -0.83% $527,900 $523,500
Clyde Hill WA Seattle-Tacoma-Bellevue -0.82% $2,573,600 $2,552,600
Kent WA Seattle-Tacoma-Bellevue -0.77% $387,300 $384,300
Federal Way WA Seattle-Tacoma-Bellevue -0.66% $364,900 $362,500
Enumclaw WA Seattle-Tacoma-Bellevue -0.56% $391,000 $388,800
Medina WA Seattle-Tacoma-Bellevue -0.46% $2,778,900 $2,766,000
Mill Creek WA Seattle-Tacoma-Bellevue -0.37% $600,300 $598,100

San Jose

Like the tech-centered city of Seattle, San Jose and the San Jose metro area too have taken the housing slowdown quite hard. According to Zillow, home values in San Jose declined by 4.2% since last year, and are forecasted to fall by 6.9% in the coming year. But that’s nothing compared to other cities in the San Jose metro area.

In Santa Clara, home values dropped by 8.4% from May 2018 to May 2019; in the next year, Santa Clara home values are expected to fall by 9.4%. In Sunnyvale, the decline is even more dramatic: Home values plummeted 10.7% since last year, and are projected to continue falling by 10.5% over the next year. Inventory has increased year-over-year in both Santa Clara and Sunnyvale, according to Redfin data, with the latter up 73.8% in terms of all homes for sale form May 2018 to May 2019.

The impact on San Jose metro area home values has been substantial. Out of the 24 cities in the San Jose metro area tracked by Zillow, 21 of them have experienced outright declines in median home value year-over-year.

City State Metro Past Year Change (%) May 2018
Median Home Value
May 2019
Median Home Value
Stanford CA San Jose-Sunnyvale-Santa Clara -14.9% $3,406,700 $2,900,700
Monte Sereno CA San Jose-Sunnyvale-Santa Clara -11.5% $3,604,400 $3,190,400
Sunnyvale CA San Jose-Sunnyvale-Santa Clara -10.7% $1,884,200 $1,683,000
Lexington Hills CA San Jose-Sunnyvale-Santa Clara -10.4% $1,038,700 $930,600
Campbell CA San Jose-Sunnyvale-Santa Clara -9.7% $1,437,400 $1,298,300
Palo Alto CA San Jose-Sunnyvale-Santa Clara -9.4% $3,237,300 $2,932,700
Saratoga CA San Jose-Sunnyvale-Santa Clara -9.1% $2,969,100 $2,699,300
Los Altos Hills CA San Jose-Sunnyvale-Santa Clara -9.0% $4,928,600 $4,486,900
Cupertino CA San Jose-Sunnyvale-Santa Clara -8.8% $2,310,200 $2,106,600
Santa Clara CA San Jose-Sunnyvale-Santa Clara -8.4% $1,402,300 $1,284,100
Alum Rock CA San Jose-Sunnyvale-Santa Clara -8.3% $754,400 $691,600
Los Altos CA San Jose-Sunnyvale-Santa Clara -7.8% $3,505,200 $3,231,000
Cambrian Park CA San Jose-Sunnyvale-Santa Clara -7.5% $1,479,500 $1,369,200
Gilroy CA San Jose-Sunnyvale-Santa Clara -7.3% $776,600 $720,200
Milpitas CA San Jose-Sunnyvale-Santa Clara -6.3% $1,097,600 $1,028,600
Morgan Hill CA San Jose-Sunnyvale-Santa Clara -5.3% $952,300 $901,400
Mountain View CA San Jose-Sunnyvale-Santa Clara -5.0% $1,892,100 $1,797,600
Los Gatos CA San Jose-Sunnyvale-Santa Clara -4.8% $1,993,800 $1,898,300
San Jose CA San Jose-Sunnyvale-Santa Clara -4.2% $1,067,100 $1,022,300
East Foothills CA San Jose-Sunnyvale-Santa Clara -3.3% $971,400 $939,300
San Martin CA San Jose-Sunnyvale-Santa Clara -2.3% $1,107,900 $1,082,500
Burbank CA San Jose-Sunnyvale-Santa Clara 1.0% $960,300 $970,200
Hollister CA San Jose-Sunnyvale-Santa Clara 6.0% $505,000 $535,500
San Juan Bautista CA San Jose-Sunnyvale-Santa Clara 7.3% $607,700 $651,800

There are, of course, other cities that have seen home values decline since last year. But those other cities didn’t experience the marked increase in housing inventory the way the Seattle and San Jose areas have. For instance, New Orleans home values have declined by 5.5% year-over-year, but available inventory, according to Redfin, was 1,573 in May 2019, down by 36.5% from May 2018 when there were 2,478 homes for sale.

Check out the full list of cities that have taken the housing slowdown the worst.

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