25 Hot STR Markets Where Property Prices Are Dropping

Aspen, Napa, Austin: 25 Hot Markets Where Property Prices Are Dropping

Still using rising property prices as an excuse to stay on the sidelines?
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That excuse might not be valid anymore.

Nearly one-third of all US real estate markets, 99 out of 300, are seeing prices drop right now. And these aren't struggling towns with no demand. A lot of them are high-demand STR hotspots. Think Aspen. Austin. Red River Gorge. Providence.

Yep, those towns most people would only dream of investing in? That's where prices are slowly dropping.

This Market Monday, we're sharing the US markets seeing the biggest home price drops. Plus five markets where you can still invest for less than $250,000.

By the time you finish this email, 2026 might feel like a good year to start investing or scale up.

                                                                                                            GET THE FULL MARKET LIST                                                                                                                                                                                                        

The Top Markets To Watch With Dropping STR Property Prices in 2026

Here are the markets with the biggest real estate price drops according to AirDNA, Zillow, and data research firm Cotality.

 •   Oxford, Mississippi - Down 8.9%
 •   Green Bay, Wisconsin - Down 7.2%
 •   Providence, Rhode Island - Down 7.0%
 •   Red River Gorge, Kentucky - Down 6.9%
 •   Aspen and Snowmass, Colorado - Down 6.8%
 •   Syracuse, New York - Down 6.8%
 •   Austin, Texas - Down 6.7%
 •   South Bend, Indiana - Down 5.4%
 •   Napa, California - Down 7.1%
 •   Naples, Florida - Down 6.8%

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Napa, Aspen, and Naples? Those are famously premium markets you'd never expect to see this kind of softening. And some of the other markets on this list have never been more affordable in years.

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But here's the catch. A dropping price tag doesn't automatically make a market a solid investment. You need to dig into why prices are falling.

In Florida, Hawaii, and California, insurance costs are the main culprit. In other markets, it might be slowing tourism or oversupply. Maybe it's STR regulation changes. This list is a great starting point to save on your next investment. But always do your homework before jumping in.

AirDNA's Best Markets to Invest In for $250K or Less

We're not done yet. The AirDNA team also crunched the numbers on affordable markets. These five stand out for combining low entry prices with strong rental demand.

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Finger Lakes, New York

Average home price is around $184,000, with average revenue near $36,000. That's a 19.6% yield. This market enjoys four-season demand from lake life, wine country, and winter getaways.

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South Bend, Indiana

Average home price is around $180,000, with an average revenue of $35,000. Also a 19.6% yield. Big event spikes from Notre Dame football and steady regional tourism.

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West Coastal Michigan

The average home price is around $186,000, with average revenue near $36,000. A 19.2% yield. Lake Michigan beach towns like Holland and Grand Haven attract repeat summer travelers.

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These might not be flashy headline markets, but they work. Diversified demand. Steady occupancy. Realistic entry prices that leave room for furnishing and reserves. That's a great market to build something incredible in.

The Only Thing Standing Between You and a Deal Is...

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You.

It's easy to look at the market and tell yourself you'll wait for better conditions. Lower prices. Lower rates. The stars aligning.

But here's what we've learned from watching hundreds of Host Camp members build their portfolios: The biggest success stories aren't people with a fortune in savings ready to invest. They're people who got resourceful. Who got creative. Who used what they had instead of waiting for a better market.

2026 is shaping up to be a great year to scale up or get started. Prices are cooling in key markets. The STR premium is rebounding. Despite the economic turmoil, there's still opportunity to take back control of your financial future and build wealth with real estate.

The question isn't whether the market is ready. It's whether you are.

That's Just the Teaser...

We're holding out on you. In our full market guide, we share:

• All 25 markets with the biggest price drops (complete list)
• All 5 best markets to invest in under $250K (detailed breakdown)
• The one thing to look out for so you can negotiate a better offer
• Kai's Golden Triangle method to vet any market for real demand
• Rob's Napkin Method to see if a property actually pencils out in minutes

                                                                                               READ THE FULL MARKET GUIDE                                                                                                                                                                                                                              

Happy investing,

The Host Camp Team

P.S. Found a market that caught your eye? Don't just trust the price tag. Use AirDNA to study the real numbers and make data-backed investment decisions.Get 10% off your AirDNA membership with our link here.

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