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Zillow economists simply revealed their up to date 12-month forecast, projecting that U.S. house costs—as measured by the Zillow Residence Worth Index—will rise 1.5% between October 2025 and October 2026.
Heading into 2025, Zillow’s 12-month forecast for U.S. house costs was +2.6%. Nevertheless, many housing markets throughout the nation softened quicker than anticipated, prompting Zillow to situation a number of downward revisions. By April 2025, Zillow had minimize its 12-month nationwide house value outlook to -1.7%.
In late spring, Zillow stopped issuing downward revisions. In August, it revised its 12-month outlook to +0.4%. In September, the forecast elevated to +1.2%, and in October Zillow upgraded its 12-month nationwide house value forecast to +1.9%.
This month, Zillow revised down its 12-month outlook for U.S. house value development only a tad to +1.5%.
Whereas Zillow’s nationwide house value forecast is now not unfavourable—it isn’t precisely bullish both.
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Among the many 300 largest U.S. metro-area housing markets, Zillow expects the largest house value enhance between October 2025 and October 2026 to happen in these 15 metros:
- Atlantic Metropolis, New Jersey → +5.3%
- Rockford, Illinois → +4.8%
- Harmony, New Hampshire → +4.6%
- Knoxville, Tennessee → +4.3%
- Saginaw, Michigan → +4.3%
- Jacksonville, North Carolina → +4.2%
- Kingston, New York → +4.2%
- Fayetteville, Arkansas → +4.1%
- Inexperienced Bay, Wisconsin → +4.1%
- Torrington, Connecticut → +4.1%
- New Haven, Connecticut → +4.0%
- Hartford, Connecticut → +3.9%
- Hilton Head Island, South Carolina +3.9%
- Manchester, New Hampshire → +3.8%
- Norwich, Connecticut → +3.8%
Among the many 300 largest U.S. metro-area housing markets, Zillow expects the largest house value decline between October 2025 and October 2026 to happen in these 15 metros:
- Houma, Louisiana → -7.8%
- Lake Charles, Louisiana → -7.3%
- New Orleans → -4.7%
- Shreveport, Louisiana → -4.3%
- Lafayette, Louisiana → -4.2%
- Beaumont, Texas → -4.0%
- Alexandria, Louisiana → -3.9%
- Odessa, Texas → -3.0%
- Monroe, Louisiana → -2.7%
- Punta Gorda, Florida → -2.7%
- Austin → -2.6%
- Chico, California → -2.5%
- Corpus Christi, Texas → -2.4%
- San Francisco → -2.2%
- Texarkana, Texas → -2.2%
U.S. house costs, as measured by the Zillow Residence Worth Index, are presently up 0.01% 12 months over 12 months. If Zillow’s newest 12-month outlook (+1.5%) involves fruition, it could characterize a small acceleration nationally.
Under is what the present year-over-year fee of house value development seems like for single-family and apartment house costs. The Sunbelt, in particular Southwest Florida, is presently the epicenter of housing market weak spot.
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In a report published in October, Kara Ng, a senior economist at Zillow, wrote, “A 12 months in the past, 6 of the nation’s 50 largest metros have been purchaser’s markets; this September, patrons have the sting in 15 metros. Zillow’s market warmth index reveals the strongest purchaser’s markets are Miami, New Orleans, Austin, Jacksonville, and Indianapolis. That’s due, largely, to a surge of recent building in a lot of these areas in recent times. The most popular markets for sellers are within the Northeast and Bay Space: Buffalo, Hartford, San Jose, San Francisco, and New York—locations the place builders face a number of the most stringent land use restrictions.”
