Housing market correction accelerates across major U.S. cities. Mid-tier home prices declined in 27 of 33 tracked expensive markets as of March 2026, with Austin down 26% and Oakland down 25% since their 2022 peaks. The Federal Reserve's massive monetary stimulus from 2020 to 2022 fueled explosive price gains, including Austin's 62% spike and Phoenix's 60% surge, driven by near-3% mortgage rates during peak inflation. Now the market is reversing course. San Francisco presents an anomaly where AI-sector wealth concentrates in super-expensive properties, trickling down to inflate mid-tier prices despite overall employment declines. Meanwhile, five cities including New York, Chicago, and Philadelphia posted new highs, though gains remain modest compared to the pandemic-era frenzy. Boston sits at the inflection point with prices essentially flat year-over-year.
