San Antonio was one of only six housing markets where home prices declined over the past year. Credit: Shutterstock / Andy Dean Photography

Despite a run up in home prices during the pandemic, San Antonio may end up being one of the nation’s coldest residential real estate markets this year, according to a recent report from online brokerage Zillow.

San Antonio’s housing prices are expected to decline 2.1% by December, which would make it the second-coldest of the nation’s 50 top markets, according to Zillow’s report. That’s a significant change from last year, when the company ranked San Antonio as the country’s No. 13 hottest real estate market.

In a statement to the Express-News, Zillow officials said Texas’ drop in housing costs mostly stems from abundant new construction and higher mortgage interest rates. However, Zillow analysis still expect interest rates to come down later in 2024, which could give some potential homebuyers some much-needed financial relief.

Houston also ranked among the top 10 coldest housing models of 2024. There, home prices are predicted to decline 2% over the next 12 months. Other flaccid markets include New Orleans, Denver and Minneapolis, according to Zillow.

Surprisingly, the Rust Belt is home to many of the markets expected to prove hottest this year. .

Icy Buffalo, New York, took the top spot, with homes sitting on the market for only 14 days. Cincinnati, Ohio; Columbus, Ohio; Indianapolis; and Providence, Rhode Island, rounded out the top five.

“Housing markets are healthiest where affordable home prices and strong employment are giving young hopefuls a real shot at buying and starting to build equity,” Zillow Economic Research data scientist Anushna Prakash said in a statement.

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This article appears in Jan 10-23, 2024.

Michael Karlis is a multimedia journalist at the San Antonio Current, whose coverage in print and on social media focuses on local and state politics. He is a graduate of American University in Washington,...