Zillow Forecasts Modest Home Price Growth and Increased Sales in 2026
Zillow economists forecast gradual improvement in the U.S. housing market by 2026, with home values rising by 1.2% and existing home sales increasing by 4.3%. Rent affordability is expected to improve, and mortgage rates may slightly moderate, aiding buyer participation. The market is anticipated to return to stability, benefiting both buyers and sellers.
Zillow Group Inc. economists project that the U.S. housing market will see gradual improvement in 2026, citing increased home sales and modest price growth. Home values are forecast to rise by 1.2%, with the number of major markets experiencing annual price declines expected to decrease from 24 to 12. Existing home sales are predicted to reach 4.26 million, a 4.3% increase over 2025, as improved affordability draws more buyers into the market. Rent affordability is also expected to improve, with multifamily rents remaining nearly flat. Mortgage rates are anticipated to stay above 6%, but slight rate moderation should help more buyers participate. Zillow economists highlight the market’s return to stability, with both buyers and sellers benefiting from steadier conditions and reduced volatility. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Zillow Group Inc. published the original content used to generate this news brief via PR Newswire (Ref. ID: SF39088) on December 04, 2025, and is solely responsible for the information contained therein. © Copyright 2025 - Public Technologies (PUBT)
