Press release
Zillow economists say the housing market will warm up in 2026, with more sales and modest price growth
Zillow predicts a slight uptick in home sales as pent-up demand meets improved affordabilityHome values are forecast to rise 1.2% in 2026, with the number of
About this update from Zillow Group, Inc.
[{"type":"text","content":"Zillow predicts a slight uptick in home sales as pent-up demand meets improved affordabilityHome values are forecast to rise 1.2% in 2026, with the number of major markets seeing annual price declines projected to fall from 24 markets as of October to 12 next year.Zillow projects 4.26 million existing home sales next year — a 4.3% increase over 2025 — as improving affordability brings more demand back to the market.Rent affordability is expected to improve in 2026, with multifamily rents forecast to remain flat — up just 0.3%.SEATTLE, Dec. 4, 2025 /PRNewswire/ -- Economists at Zillow® expect 2026 to bring steadier footing to the housing market as affordability improves and the ways Americans want to live continue to evolve.\n \n \n \n \n \n \n \nOn the heels of a year of small wins for home buyers — slight affordability gains and buyer-friendly markets in 19 major metro areas — home buyers and sellers can expect a modest rise in home values, a few more sales and mortgage rates holding above 6%. Many apartment renters should look forward to some affordability relief; however, those in New York City should not.\"The housing market is finally settling into a healthier state, with buyers and sellers starting to return,\" said Mischa Fisher, chief economist at Zillow. \"Buyers are benefiting from more inventory and improved affordability, while sellers are seeing price stability and more consistent demand. Each group should have a bit more breathing room in 2026.\"Home values will rise modestly Zillow economists expect U.S. home values to grow 1.2% in 2026, after national values were generally flat in 2025. Next year's forecast reflects expectations of gradually improving affordability and steady buyer demand. Mortgage costs should ease a bit in 2026, helping more buyers stay in the market and supporting modest price growth in many parts of the country.Fewer owners will be underwater as prices firm up With home values expected to rise in most major markets, fewer homeowners will see their Zestimate® fall below what they paid for their home. This stands in contrast to 2025, when home values have fallen in 24 of the 50 largest markets, as of October — a number Zillow forecasts will be cut by half to 12 major markets next year. Stabilizing prices mean more homeowners will continue building equity rather than losing it, at least on paper...