Zillow revises down its home price forecast—this map shows its outlook for 400 housing markets

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Zillow economists simply revealed their up to date 12-month forecast, projecting that U.S. dwelling costs—as measured by the Zillow House Worth Index—will rise 0.5% from February 2026 to February 2027. 

That’s a light downward revision from its 12-month forecast revealed final month (+0.9%).

Whereas Zillow’s nationwide dwelling worth forecast isn’t unfavourable, it isn’t precisely bullish both. It foresees a comfortable nationwide housing market in 2026, one the place affordability could enhance barely as U.S. revenue development outpaces U.S. dwelling worth development.

What kind of regional variation does Zillow anticipate in 2026?

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Among the many 300 largest U.S. metro-area housing markets, Zillow expects the most important dwelling worth enhance from February 2026 to February 2027 to happen in these 15 metros:

1. Rockford, Illinois  → +5.1% 
2. Syracuse, New York  → +4.6% 
3. Atlantic Metropolis, New Jersey  → +4.6% 
4. Knoxville, Tennessee  → +3.9% 
5. Rochester, New York  → +3.8% 
6. Inexperienced Bay, Wisconsin  → +3.8% 
7. Appleton, Wisconsin  → +3.8% 
8. Wausau, Wisconsin  → +3.7% 
9. Morristown, Tennessee  → +3.7% 
10. Janesville, Wisconsin  → +3.5% 
11. Norwich, Connecticut  → +3.4% 
12. Vineland, New Jersey  → +3.3% 
13. Pottsville, Pennsylvania  → +3.3% 
14. Hartford, Connecticut  → +3.2% 
15. New Haven, Connecticut  → +3.2%

Among the many 300 largest U.S. metro-area housing markets, Zillow expects the most important dwelling worth decline from February 2026 to February 2027 to happen in these 15 metros:

1. Houma, Louisiana → -7.0% 
2. Lake Charles, Louisiana → -4.5% 
3. New Orleans → -3.8% 
4. Austin → -3.6% 
5. Alexandria, Louisiana → -3.2% 
6. Lafayette, Louisiana  → -3.0% 
7. Beaumont, Texas → -3.0%
8. Chico, California  → -2.9%
9. Shreveport, Louisiana → -2.8% 
10. Denver → -2.6% 
11. Boulder, Colorado → -2.5% 
12. San Francisco → -2.4% 
13. Punta Gorda, Florida → -2.4% 
14. Santa Rosa, California → -2.3% 
15. Vallejo, California → -2.3%

U.S. dwelling costs, as measured by the Zillow House Worth Index, are at present up 0.4% 12 months over 12 months. If Zillow’s newest 12-month outlook (+0.5%) involves fruition, it might signify one other 12 months in a nationally aggregated comfortable housing market. 

Under is what the present year-over-year fee of dwelling worth development appears to be like like for single-family properties and condos. The Sunbelt, in particular Southwest Florida, is at present the epicenter of housing market weak spot.

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“Because the housing market strikes towards steadiness, new listings and gross sales are anticipated to extend at roughly the identical tempo. That nearer alignment between provide and demand ought to assist hold dwelling values comparatively secure total,” wrote a Zillow economist in a March 13 report. “Present dwelling gross sales at the moment are projected to achieve 4.24 million in 2026, a small upward revision from final month’s estimate of 4.2 million. Reasonably easing mortgage charges are anticipated to unlock some pent-up demand, supporting a modest rebound in transactions. Even with this enchancment, gross sales are anticipated to stay beneath historic norms.”

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