America’s so-called pandemic boomtowns are now reporting the nation’s highest share of home listings with price cuts, according to recent data.

A new report by real estate marketplace Zillow found that Denver, Colorado, had the highest number of for-sale home listings with price reductions in the U.S. in June, at 38.3 percent. It was followed by Raleigh, North Carolina, at 36.4 percent, and Dallas, Texas, Nashville, Tennessee, and Phoenix, Arizona, at 35.5 percent each.

In all of these cities—which grew rapidly during the height of COVID-19 due to an influx of remote workers—inventory has been surging recently, while sales have failed to keep up.

A Nationwide Trend

All across the country, sellers are increasingly being forced to offer reductions on their original asking prices if they hope to offload their homes at all.

This is happening in part because many sellers have returned to the market after years of waiting for mortgage rates to come down; but also because much of this additional inventory is not going under contract, and is now piling up on the market.

While there is still a massive gap between demand and supply of homes in the U.S. market, many Americans just cannot afford homeownership at the moment. The 30-year fixed-rate mortgage, the most popular in the country, is still hovering around the 7 percent mark, and experts believe it is unlikely to go down any time soon.

Home prices remain sky-high, even as their growth has slowed down significantly since the years of the pandemic homebuying frenzy. And other housing costs—including home insurance premiums, property taxes, and homeowners association (HOA) fees are much higher than they were before COVID-19, and are still rising.

Sellers facing more competition on the market and more reluctance among buyers now have to adjust their price expectations and sweeten the deal with cuts—unless they opt for delisting their properties entirely.

According to Zillow, 26.6 percent of listings, nationally, had price cuts, up from 25.8 percent in May and 24.4 percent a year ago. That was the highest rating for any June going back to 2018, as per Zillow data.

Pandemic Boomtowns Are Rebalancing Faster

Pandemic boomtowns including Denver, Raleigh, Dallas, Nashville, and Phoenix are seeing higher share of listings with price cuts than anywhere else in the country because these markets are experiencing a bigger correction.

These cities became incredibly overheated during the pandemic, when out-of-state remote workers moved in to find cheaper homes, a more affordable cost of living, and a good quality of life. But as employers started issuing return-to-office orders and higher mortgage rates put a damper on homebuying, these cities have seen their housing markets cool down fast.

On the opposite end are cities that have hardly been affected by these pandemic dynamics, and where the shortage of inventory remains so acute as to keep prices up. Milwaukee, Wisconsin, had the lowest share of home listings with price cuts in the country, at 13.9 percent in June.

It was followed by New York City, New York (15.6 percent), Hartford, Connecticut (16 percent), Buffalo, New York (18.3 percent) and San Jose, California (22.1 percent). Buffalo, however, reported the highest month-over-month increase in price cuts, up 3.9 percent from May.

Zillow expects more price cuts to come for buyers all across the country.