25 real estate markets poised to fall

One way to know where housing prices are headed is to look at their relationship to rents. As Fortune's data show, big declines are needed to bring prices and rents back in line.

Philadelphia
Philadelphia

5-yr home price forecast:
-21.6%

Home price/rent ratio:
18.6
15-yr average: 12.5

Note: People typically won't spend more in monthly costs to own a home than they would to rent. While prices soar from time to time, sending the ratio to exceptional heights, the relationship eventually should return to its historical average.

Orlando

Miami

East Bay, Calif.

Tampa

Baltimore

Fort Lauderdale

Palm Beach County, Fla.

Las Vegas

Sacramento

Greater Washington, D.C.

Los Angeles

Jacksonville

San Diego

Long Island, N.Y.

Phoenix

Charlotte

Norfolk

Salt Lake City

Richmond

Orange County, Calif.

Philadelphia

Seattle

Portland, Ore.

North/Central N.J.

Inland Empire, Calif.
Source: Fortune analysis; Moody's Economy.com; PPR; National Association of Realtors.

*Home price/rent ratios are for June 2007
**5-yr home price forecast applies to upscale homes (homes that sell for double the local median price)
That's the question homeowners are asking in the midst of the worst real estate slump in decades. Our exclusive calculations can help you figure out what your house will be worth in coming years. (more)
Our calculations show that big declines are needed to bring prices back to their historical relationship to rents. (more)