No. 1 Worst Housing Market: Homestead, Fla.

Percentage change: -48.8
MSA: Miami-Fort Lauderdale
Population: 60,512

At first glance, Homestead is a typical working-class Florida community that experienced a huge housing boom in recent years. Unfortunately, it is also typical in that many of those new houses are either unfinished, behind on their mortgages, in foreclosure, or abandoned. Homestead is unlike other Florida communities, however, in that it has seen the biggest deterioration in home values in this already economically-damaged state. Even worse, with a percentage drop of 48.8 percent, Homestead has the worst decline in home values in the U.S. The city was badly damaged by Hurricane Andrew in 1992 and never really recovered. Crime is also an issue: The crime rate remains above the state average. According to the Zillow Home Value Index, the median home value in the city is $76,000, and the median sale price was $96,400 as of Aug. 31.

Photographer: Joe Raedle/Getty Images
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