Two maps that show where the housing market is struggling

As spring arrived, industry experts were optimistic that the housing market could rebound following a slow start in 2025. However, as summer approaches, much of that optimism has waned. Existing-home sales are stagnant around 4 million, and several typically strong markets for homebuilders have stalled.

In its midyear housing market report, John Burns Research & Consulting (JBREC) updated its assessments of market conditions for both resale and new-home markets. Overall, sentiment among agents and homebuilders has turned negative. JBREC rates cities in the new-home market on a scale from very slow to very strong, and many areas across the country are trending in a negative direction.

Chris Porter, JBREC’s senior vice president of research, noted during a recent webinar that more markets have been downgraded from normal to slow, which is unusual for the spring selling season. Previously favorable conditions for builders in Texas and Florida have significantly shifted, with all cities in these states now labeled as “slow.”

A survey by JBREC revealed that rising property taxes and homeowners insurance costs are contributing factors for homeowners looking to sell, particularly in Texas and northern Florida. Other regions that have been prosperous for builders in the past, such as Colorado, North Carolina, and Nashville, are also now categorized as “slow.”

Despite the overall slowdown, there are some bright spots for builders in cities like Chicago and Indianapolis, which are graded as “strong.” In California, with the exception of Oakland, most areas are rated as either “strong” or “normal,” with San Diego and Orange County falling into the former category.

JBREC, known for serving homebuilders and investors, also evaluated the resale market by polling real estate agents on their perceptions of market conditions. Unfortunately, the results show a similar trend. While Northeast and Midwest markets are deemed “normal,” several markets in Florida and Texas are labeled as “very slow,” including Fort Lauderdale, Sarasota, Tampa, and Austin. California and the Southwest are facing challenges as well, with only a few cities receiving a “normal” designation.