Home values fall for a seventh month while rents keep rising
Home values fell 1.2% in October, the seventh fall in a row, Cotality reports. The typical home is now worth about $63,400 less than at the March 2026 peak.
How far values have fallen
Source: Cotality Home Value Index, November 2026.
| Month | -1.2% |
| Quarter | -3.9% |
| Year | -2.8% |
| From peak | -6.7% |
Key numbers
Why values are falling
Five rate rises this year have made loans more expensive, which reduces how much buyers can borrow. Fewer buyers and slower sales usually mean lower prices. Cotality's figures show capital city values down over the past year, while regional values are still slightly higher than a year ago.
Rents behave differently. They depend on how many people need somewhere to live and how many homes are available, so they can keep rising even while values fall.
What it means for renters and owners
- Renters saving to buy: lower prices can help, but higher rates cut borrowing power, so check both before deciding when to buy.
- Owners: if you'd rather not sell into a falling market, renting out a spare room can help cover costs while you wait.
- Listers: renters are comparing more options, so a clear, fairly priced room stands out.
Why renters should care
Falling values don't lower rents. Rents rose 0.9% over the last three months. With buying harder to finance at higher rates, many people keep renting longer, which keeps demand for rooms steady.
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Figures are from the sources above at the time of writing. This article is general information, not financial or legal advice.