A recent study shows most of the biggest cities in the country are sinking, and three Texas cities are doing so faster than the rest.

Gerli predicts that Texas home prices could drop an additional 4 percent statewide over the next year. However, affordability challenges are expected to persist throughout 2025. "It is still likely that Texas' market will be about 10-12 percent overvalued at the end of 2025," he said, adding that further gradual declines may extend into 2026.