53% of U.S. homes lost value in the past year, the most since 2012 

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Home values are falling for more than half of U.S. households. New research from Zillow® shows 53% of all U.S. homes have lost value since last year — the highest share since 2012, the tail end of home value declines after the Great Recession.  

But the vast majority of homeowners have seen their home values rise substantially in the time they’ve owned them — 67% growth at the median — and losses are rare; just over 4% of homes have lost value since they were last sold, a smaller share than before the pandemic. 

National home value appreciation has been flat over the past year, but that average hides peaks and valleys by region, metro, neighborhood and all the way down to the individual property. As of October, 53% of homes have lost value over the past year as measured by their Zestimate® from Zillow. This share has climbed from just 14% a year ago, and is the highest share of homes declining in value since April 2012, when the housing crash was reaching its bottom. 

“Homeowners may feel rattled when they see their Zestimate drop, and it’s more common in today’s cooler market environment than in recent years. But relatively few are selling at a loss,” said Treh Manhertz, senior economic researcher at Zillow. “Home values surged over the past six years, and the vast majority of homeowners still have significant equity. What we’re seeing now is a normalization, not a crash.” 

The vast majority of homeowners have plenty to feel good about. Nationwide, the median home value increase since last sale — roughly eight and a half years ago at the median — is 67%. Some fast-growing and supply-constrained metros have seen home values rise much faster since last sale, led by Buffalo (108%), San Jose (97%), Providence (95%), Columbus (90%) and San Diego (88%). One contributing factor is that owners in these areas tend to stay in their homes longer than average.