Biggest home price corrections are hitting markets that overheated most during the pandemic

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Among the nation’s 100 largest metro area housing markets, no major market saw greater home price appreciation during the Pandemic Housing Boom than Austin, TX—where home prices surged a staggering 72.5% between March 2020 and June 2022. Since the boom fizzled out three years ago, Austin has also experienced the largest home price correction (-26.0%) among those same 100 major markets.

Austin being among the hardest-hit markets isn’t surprising.

Back in May 2022, I wrote an article for Fortune outlining Austin’s heightened downside risk this cycle, driven in part by the fact that the market had significantly overheated and become markedly overvalued relative to underlying