Homeowners Losing Equity: Falling Home Prices Explained
- The rapid home equity gains seen during the pandemic are moderating, with notable regional variations emerging across the United States.
- According to the S&P CoreLogic Case-Shiller national home price index, home values are approximately 52% higher than in January 2020 (S&P Dow Jones Indices, December 2025).
- The national picture masks considerable differences at the local level.
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U.S. Home Equity Gains Slow, Regional Markets Diverge
Table of Contents
Published December 12, 2025, at 20:21 PST
Updated december 12, 2025, at 20:21 PST
The rapid home equity gains seen during the pandemic are moderating, with notable regional variations emerging across the United States. While national home values remain substantially higher than pre-pandemic levels, the pace of increase has slowed considerably, and some major metropolitan areas are experiencing price declines.
National Trends in Home Equity
According to the S&P CoreLogic Case-Shiller national home price index, home values are approximately 52% higher than in January 2020 (S&P Dow Jones Indices, December 2025). Despite rising mortgage rates throughout 2023,the average homeowner still experienced an equity gain of $25,000 that year. However, this figure dropped to $4,900 in 2024, indicating a significant deceleration in equity growth.
Regional Disparities
The national picture masks considerable differences at the local level. Boston, Chicago, and New York continue to see positive home value trends, according to the CoreLogic report (CoreLogic,December 2025). However, major markets like Los Angeles, San Francisco, Washington D.C., Miami, and Houston, Texas, have experienced price losses.
The following table illustrates the change in home values in select metropolitan areas:
| Metropolitan Area | Price Change (2024) |
|---|---|
| Boston | +3.5% |
| Chicago | +2.1% |
| New York | +1.8% |
| Los Angeles | -4.2% |
| San francisco | -5.8% |
| Washington, D.C. | -3.1% |
| Miami | -6.5% |
| Houston | -2.7% |