Lakeland, Florida
Lakeland has been a quiet but noticeable addition to weakening markets. This central Florida city saw rapid price growth over the past three years, but 2025 is revealing a slowdown. Price cuts are becoming more frequent, and buyer activity lags what the market saw in previous spring seasons.
Lakeland’s appeal rested heavily on its location between Tampa and Orlando, offering more affordable housing for commuters. However, the market’s appeal has softened, with fewer buyers willing to stretch their budgets and rising transportation costs. Sellers who once commanded multiple offers now face stagnant listings and diminishing returns.
Killeen, Texas
Killeen’s real estate market has hit as demand from military relocations and investors has cooled. The area benefited from relatively low prices for years, but a surge in purchases led to a sharp rise in home values that many locals can no longer afford. As interest rates climb, fewer military families and first-time buyers enter the market.
A notable increase in housing stock also compounds this decline. Builders were optimistic about the long-term growth in Killeen, but with current economic uncertainty, the new supply is outpacing actual buyer interest. Price drops in the coming months are increasingly likely as inventory levels increase.
Austin, Texas
Austin is one of the most dramatic examples of a once-thriving housing market now struggling to maintain momentum. Prices soared during the tech boom, but layoffs and a return to in-office work have reduced the appeal for many remote employees. The city’s median home price has already dipped and may fall further.
Austin’s rise brought a flood of investors and developers, many of whom are now pulling back or facing losses. With home prices still among the highest in Texas, affordability remains a challenge. The market’s cooling reflects a broader rebalancing as demand normalizes and buyers become more selective.
San Antonio, Texas
San Antonio is beginning to show signs of a broader housing correction. Home values have started to fall after years of steady gains, and listings are beginning to linger longer than expected. While still more affordable than Austin, San Antonio has not been immune to the ripple effects of economic shifts and rising borrowing costs.
The slowdown is hitting entry-level buyers hardest, leading to fewer closed sales and increased competition among sellers. Builders are also beginning to pull back on new projects, fearing that a continued drop in demand could result in unsold inventory. As this trend unfolds, home prices could dip even further.
