AUSTIN, Texas — Austin is seeing a significant drop in home values compared to most other U.S. metros, according to a Zillow report.
As of this month, approximately 89.5% of Austin homes lost value within the last year. That number came second only to Denver, which saw 91% of homes drop in value. Dallas was close behind Austin at 87%.
The last time Austin home value losses were that high or higher was in April 2023, when it hit 90.1%.
According to the report, the majority of metros that have lost value within the last year have been located in the Western and Southern regions of the U.S.
In addition, Austin has seen an average percentage drawdown from its Zestimate peak of -20.5%. And homes within the city limits valued lower than their sale price by 5% or more sit at 11.9% in 2025, second to only Little Rock, Ark., which is at 19.7%.
“Though a cooling labor market and high prices continue to challenge household budgets, for now most homeowners are well able to weather short-term financial turbulence. Those who either bought or refinanced at historically low mortgage rates have stable, low payments and most home owners have significant equity amassed in their homes,” the report said.