Adobe Stock
Audio By Carbonatix
Soaring property taxes, driven by rising home appraisals, have been key factors at the ballot box for voters and in Austin for lawmakers over the past couple of years. A recent report from Zillow suggests that Dallas homeowners may see some relief in this regard, even if it’s not all good news.
More than 50% of homes in the U.S. lost value in the past year, with 87% of homes in Dallas experiencing a decline in value during that time, according to the Zillow report. That local number is startling, but we’re hardly alone.
“Loss of value over the past year has been most widespread in the West and South,” Zillow reports. “Most major metros in these regions have seen half or more of their homes lose value. More homes have slid in Denver than in any other metro, 91%, followed by Austin (89%), Sacramento (88%), Phoenix and Dallas — both at 87%. All told, 49 of the 64 major metros in these regions (those in the top 100 nationally) have had most homes fall in value.”
When news happens, Dallas Observer is there —
Your support strengthens our coverage.
We’re aiming to raise $30,000 by December 31, so we can continue covering what matters most to you. If the Dallas Observer matters to you, please take action and contribute today, so when news happens, our reporters can be there.
Measured between October 2024 and October 2025, Zillow’s “Zestimate” measured the home values by incorporating public, MLS and user-submitted data into Zillow’s proprietary formula. Certain other factors, including location and market trends, also contributed to the findings.
The report notes that this is the fastest drop since 2012 and also shows that the overall value of Dallas homes is down 11% from their Zestimate peak in recent years. Hitting double digits in this category is significant because it represents the biggest dip for Dallas homes since 2013 (13.6% decrease) and 2012 (17.2% decrease).
Another figure worth keeping an eye on for homeowners is the number of homes being valued for less than what they were purchased for. In 2025, Dallas had nearly 4% of its homes valued at more than 5% lower than their previous sale price.
“As concerning as tracking drawdowns can be, what really matters is the previous sale and the next sale,” the Zillow report states. “In September, 5.9% of homes were valued lower than the last time they sold. This share is rising quickly, up from 2.8% last year, but is still lower than the 7.9% of homes in the same position before the pandemic.”
It’s hard to believe the market is that bad in Dallas right now, though. Strong demand, spurred by continued population growth in Big D, has been widely reported. Meanwhile, balanced market conditions and an increased inventory of available homes have also been acknowledged. Not that it’s necessarily cheap to live in Dallas proper at the moment, of course. On Zillow alone, there are nearly 5,000 listings, with a dozen homes selling for more than $10 million, for whatever that’s worth.
If all of this sounds rather depressing, the report concludes on a somewhat hopeful note in the face of so many value drops.
“Though a cooling labor market and high prices continue to challenge household budgets, for now most homeowners are well able to weather short-term financial turbulence,” Zillow notes at the end of its report. “Those who either bought or refinanced at historically low mortgage rates have stable, low payments and most homeowners have significant equity amassed in their homes.”
