Zillow Flags 2026 Shift in Housing Demand, Investor Warning
Zillow 2026 Forecast: Prices, Sales, and Affordability While the housing market exits a near-flat 2025, Zillow projects U.S. home values will rise 1.9% in 2026. That points to modest appreciation as supply continues to rebuild. National active inventory rose roughly 25% from July 2024 to July 2025, signaling a gradual reset in available listings. Earlier estimates were 1.2%, later revised to 2.0% through November 2026. Zillow’s latest 12-month outlook projects a 2.0% national home price gain from Nov 2025 to Nov 2026. Price Pressure Eases, But Declines Persist Markets with annual declines are expected to fall from 24 in October to 12 by year-end. Half of cities, including Los Angeles and Seattle, show year-over-year dips. Rebuilding inventory and the construction pipeline keep gains restrained. Sales Lift Meets Better Affordability Existing home sales are forecast at 4.2 million in 2026, up about 4% from 2025. Mortgage payments are 8.4% lower year over year, with affordability improv...