While Miami’s upper crust continues to buy and sell mansions at eye-watering prices and luxury condos are still sprouting like weeds, home prices actually took a dip this year, according to a Zillow study.
The Magic City experienced a significant decline, with 76 percent of its homes losing value in 2025. But Miami isn’t alone; it follows a trend seen nationwide, with about 53 percent of homes in the U.S. losing value in 2025, the study says. That’s a significant increase from last year, when only 16 percent of U.S. homes lost value, and the highest since 2012, when the 2008 housing market crash was starting to bottom out.
Comparing home value loss maps from 2024 to 2025 shows a bleak outlook. The map from 2024 illustrates that much of the U.S. experienced a loss of between 10 percent to 30 percent of home value. But there’s a significant increase in purple on this year’s map, indicating that home loss value ranges from 50 percent to 90 percent in many areas, particularly in the West and South.
Photo from Zillow.com
This year, make your gift count –
Invest in local news that matters.
Our work is funded by readers like you who make voluntary gifts because they value our work and want to see it continue. Make a contribution today to help us reach our $30,000 goal!
Photo from Zillow.com
Places like California and Florida have experienced some of the most significant declines in home values nationwide. In Florida, 22 cities have seen more than 60 percent of homes lose value, like Orlando (85 percent), Tampa (85 percent), and Jacksonville (83 percent). Punta Gorda (96 percent) and Cape Coral (94 percent) in western Florida saw the most widespread home value loss in the state, representing some of the worst rates in the U.S.
Denver (91 percent) had the highest percentage of home value loss in the metro category, followed by Austin (89 percent), Sacramento (88 percent), Phoenix, and Dallas (both 87 percent).
“All told, 49 of the 64 major metros in these regions (those in the top 100 nationally) have had most homes fall in value. In sharp contrast, only three of the 36 major metros in the Northeast and Midwest have had majority declines over the past year; Minneapolis — where 55 percent of home values fell — Des Moines (54 percent), and Scranton (52 percent).”
But a near-universal loss in home values doesn’t indicate that another real estate disaster is imminent.
“It’s important to consider that the peak for most homes was fairly recent,” Zillow’s report reads…”most homes were purchased well before this and for quite a bit less. That means the majority of owners are still sitting on sizable gains.”
In other words, a drop in value for most Miami homes doesn’t mean those properties are now worth less than their original purchase price.