Get All Access for $5/mo

New Reports Suggest Home Prices Could Begin Dropping Soon Home prices have skyrocketed over the past year, but experts expect a slight decline starting in 2023.

By Madeline Garfinkle

Opinions expressed by Entrepreneur contributors are their own.

Home prices rose by 20.6% year-over-year in March of 2022, marking the largest increase in the 30 years of record-keeping, according to the Joint Center for Housing Studies tabulations of CoStar and CoreLogic Case-Shiller Home Price Indices data.

Rent prices have also skyrocketed, further widening the wealth gap between owners and renters in America, and making homeownership out of reach for nearly four million Americans in the past year. The annual income required to qualify for a median-priced home has increased by $28,000 since last year, according to Harvard researchers.

But things might change soon. With an increased number of potential buyers being closed off from the market, "sellers will eventually see the need to accept a lower price for their property," said senior property economist Matthew Pointon. Despite mounting pressure on the housing market, the mortgage rate has surged over 6% which could signify that home prices are likely to begin to drop.

Capital Economics predicts a 5% decrease in home prices in 2023, followed by a "gradual recovery" to 3% by 2024. As the housing market slows, real estate firms have begun laying off workers by the hundreds as they anticipate a downturn and decline in home buying.

Related: Accessibility (or Lack Thereof) in Today's Housing Market

Still, with ongoing supply chain constraints, inflation, and initiatives by the Fed to keep it under control, home prices are still sky-high. And if the economy dips into a recession, researchers warn that the spike of individuals priced out of ownership would turn "the recent uptick in housing insecurity into a wave."

Related: How to Save the Dying American Dream of Homeownership

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

I Left the Corporate World to Start a Chicken Coop Business — Here Are 3 Valuable Lessons I Learned Along the Way

Board meetings were traded for barnyards as a thriving new venture hatched.

Side Hustle

'The Work Just Fills My Soul': She Turned Her Creative Side Hustle Into a 6-Figure 'Dream' Business

Kayla Valerio, owner of vivid hair salon Haus of Color, transformed her passion into a lucrative venture.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.


ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.