DALLAS — The value of about 53% of U.S. homes dropped last year, marking the fastest decline in value since 2012, according to a new study from Zillow.
The decline, which was measured between October 2024 and October 2025, is even steeper in Dallas, according to the study. The decline is measured by the home's Zestimate, which is determined by an algorithm that combines public records, user-submitted data, and comparable home sales.
Despite declining home values, it's rare for a home to sell for less than its previous sale price, the report says. Although the percentage of homes selling for less is rising, according to Zillow.
In Dallas, nearly 87% of homes lost value this year, the report says. Home value loss has been the steepest in the West and the South, both regions that saw a boom in housing prices and demand during the pandemic.
"Loss of value over the past year has been most widespread in the West and South," the report states. "Most major metros in these regions have seen half or more of their homes lose value. More homes have slid in Denver than in any other metro, 91%, followed by Austin (89%), Sacramento (88%), Phoenix and Dallas — both at 87%."
Overall, the estimated value of a Dallas home is down 11% from its peak, the study found. That's the biggest dip since 2013, when values were down 13.6%. However, most homes hit their peak value in the last few years, meaning most homeowners have still seen an overall increase in value from when they purchased their home to now.
"Among homes with sales records in Zillow data, the median home was last purchased 8.6 years ago and has experienced a 67.2% increase in value since that sale," the report states.
In general, most homes in DFW and the U.S. are selling for more than their previous purchase price, the study states.
In September, 5.9% of U.S. homes were valued lower than the last time they sold, up about 2.8% from last year, the report states.
"This is not a high share historically speaking, but in areas where there were an outsized number of homes sold during the pandemic-era boom, the share is much higher," the report states.
In Dallas, 3.9% of homes were valued lower than their previous sale price.
While dropping values can be concerning, and lower sale prices can be downright scary, most homeowners are still gaining significant equity in their home, the report states.
