After years of relentless price increases that have pushed homeownership out of reach for millions of Americans, a shift appears underway in select pockets of the nation’s housing market.

While most cities will continue seeing rising costs in 2026, new forecasts reveal that three underrated cities are expected to offer modest price relief, creating potential opportunities for buyers who have been priced out of more expensive metros.

The overall national housing picture shows prices rising a modest 2% in 2026, according to Zillow projections. However, several markets bucking this trend stand out for their combination of affordability and projected price declines. Three Texas and Minnesota cities present particularly interesting cases for potential homebuyers seeking value in 2026.

San Antonio: population outpacing absorption

Despite experiencing some of the fastest population growth in the United States, San Antonio faces a projected 0.2% decline in home prices over the next year. The culprit behind this counterintuitive situation is straightforward: the city overbuilt on housing supply during the recent boom years.

San Antonio’s average home value currently stands at $245,985, which represents a price point over 31% lower than the national average of $359,241. This existing affordability has attracted substantial migration to the region, but construction has moved faster than population absorption can accommodate. The result is a market where it may take another year for population growth to catch up with the expanded housing inventory.

The modest projected decline offers a silver lining for buyers. San Antonio provides access to a major metropolitan area with robust employment opportunities, particularly in healthcare, military installations at Joint Base San Antonio, and technology sector expansion. The city’s lack of state income tax adds to its financial appeal, though homeowners should factor in property taxes and insurance costs when calculating total housing expenses.

With homes already affordable by national standards and prices expected to dip slightly further, San Antonio presents an opportunity for buyers to enter a growing market at what may prove to be favorable timing. The key consideration is whether the current oversupply will correct quickly or persist, which depends largely on whether migration patterns continue at their recent pace.

Corpus Christi: coastal living at a discount

Located roughly two hours south of San Antonio along the Gulf Coast, Corpus Christi offers year-round warm weather, abundant beaches, and waterfront recreation paired with big-city amenities and minimal traffic. Home prices in the coastal city average just $216,910, with Zillow forecasting a 1.3% decline over the next 12 months.

The combination of affordable pricing and coastal access makes Corpus Christi an attractive option for buyers seeking lifestyle benefits without the premium prices commanded by Florida’s Gulf Coast markets or California’s coastal communities.

The city’s economy benefits from its position as a major energy hub, with the Port of Corpus Christi serving as one of the nation’s largest crude oil export facilities.

However, prospective buyers should approach the market with eyes wide open regarding climate risks. Corpus Christi experiences its share of hurricanes, and homeowners insurance premiums reflect that elevated risk. The insurance consideration can significantly impact total monthly housing costs, potentially offsetting some of the savings from lower purchase prices.

For buyers who can afford or are willing to accept higher insurance costs, Corpus Christi offers an opportunity to purchase coastal property at prices far below what comparable waterfront locations command in other parts of the country. The projected price decline, while modest, may provide additional negotiating leverage in a market where inventory has been increasing.

Minneapolis: cultural appeal meets affordability

No one has ever accused Minneapolis of offering mild winter weather, but the city compensates with other compelling attributes that make it worthy of consideration despite its challenging climate.

Minneapolis features a vibrant food and cultural scene, ranging from world-class museums to a thriving live music environment. Residents also benefit from abundant parks and green spaces that provide outdoor recreation opportunities during the warmer months.

With an average home price of $316,531, housing in Minneapolis remains more affordable than the nationwide average. Zillow projects home prices will fall another 0.1% over the next year, providing a slight additional discount in an already relatively accessible market.

Minneapolis benefits from a diverse economy anchored by major corporations in healthcare, financial services, manufacturing, and retail. The presence of the University of Minnesota and several other colleges creates a substantial student housing market, which can present opportunities for investors alongside traditional homebuyers. The city’s employment base and established infrastructure provide stability that some faster-growing Sun Belt markets lack.

The minimal projected decline suggests Minneapolis is experiencing gentle market normalization rather than the sharper corrections seen in markets that overheated during the pandemic. For buyers prioritizing urban amenities, cultural offerings, and economic stability over weather considerations, Minneapolis offers an entry point into a major metropolitan area at prices well below those commanded by coastal cities.

Understanding the broader context

The three cities highlighted share certain characteristics that distinguish them from markets experiencing larger price swings. None saw the extreme pandemic-era appreciation that Florida’s Gulf Coast communities did, meaning their current corrections are modest adjustments rather than dramatic reversals. All three offer home prices significantly below national averages, providing baseline affordability even before factoring in projected declines.

These markets also differ fundamentally from the 22 major cities that Realtor.com projects will see price declines in 2026. While Florida markets face steep corrections due to insurance crises, climate risks, and pandemic migration reversals, San Antonio, Corpus Christi, and Minneapolis are experiencing gentler adjustments tied to supply-demand rebalancing and regional economic factors.

The projected national environment for 2026 shows mortgage rates easing to around 6.3% from 2025’s 6.6% average. This modest improvement, combined with wage growth, should help some buyers return to the market. However, rates will remain elevated by historical standards, meaning affordability improvements will be incremental rather than transformative.

Buyer considerations and trade-offs

For prospective buyers evaluating these three markets, several factors warrant careful consideration beyond headline price projections.

San Antonio’s oversupply situation could mean extended soft pricing if population growth slows, but it also means buyers have leverage and selection.

Corpus Christi’s insurance costs require detailed financial modeling to understand true monthly obligations.

Minneapolis’s climate represents a significant lifestyle consideration that not all buyers will find acceptable.

Each market presents different risk and reward profiles. San Antonio offers growth potential if its population expansion continues absorbing excess inventory. Corpus Christi provides coastal access at affordable prices for those willing to manage climate risks. Minneapolis delivers urban amenities and economic stability in a mature market unlikely to experience dramatic swings in either direction.

The modest nature of projected declines in all three cities suggests these are not distressed markets presenting bargain opportunities, but rather stable metros where supply and demand are coming into better balance. Buyers should view these markets as offering reasonable entry points rather than once-in-a-generation deals, with the understanding that prices could stabilize or even resume modest growth if local economic conditions remain favorable.