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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 +0.9% between January 2026 and January 2027.
That’s a gentle downward revision from its 12-month forecast revealed final month (+2.1%).
At its newest studying, U.S. house costs, as measured by the Zillow Residence Worth Index, are up +0.2%. Zillow’s newest forecast expects costs to stay near that tempo.
Whereas Zillow’s nationwide house worth forecast isn’t unfavourable—it isn’t precisely bullish both. They’re calling for a mushy nationwide housing market in 2026, one the place nationwide housing affordability could enhance barely as U.S. revenue development outpaces U.S. house worth development.
What sort 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 largest house worth enhance between January 2026 and January 2027 to happen in these 15 metros:
- Rockford, IL → 5.4%
- Atlantic Metropolis, NJ → 4.8%
- Syracuse, NY → 4.4%
- Knoxville, TN → 4.3%
- Hartford, CT → 4.1%
- Norwich, CT → 4.1%
- Inexperienced Bay, WI → 4.0%
- Morristown, TN → 4.0%
- Rochester, NY → 3.9%
- New Haven, CT → 3.9%
- Harmony, NH → 3.9%
- Pottsville, PA → 3.9%
- Appleton, WI → 3.8%
- Wausau, WI → 3.8%
- Janesville, WI → 3.7%
Among the many 300 largest U.S. metro-area housing markets, Zillow expects the largest house worth decline between January 2026 and January 2027 to happen in these 15 metros:
- Houma, LA → -6.5%
- Lake Charles, LA → -5.6%
- New Orleans, LA → -4.1%
- Lafayette, LA → -3.0%
- Alexandria, LA → -3.0%
- Austin, TX → -2.9%
- Chico, CA → -2.9%
- Shreveport, LA → -2.8%
- Beaumont, TX → -2.7%
- San Antonio, TX → -2.0%
- Boulder, CO → -2.0%
- Punta Gorda, FL -2.0%
- Denver, CO → -1.9%
- Corpus Christi, TX → -1.8%
- Texarkana, TX → -1.8%
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 (+2.0%) involves fruition, it could characterize a small acceleration nationally.
Beneath is what the present year-over-year price of house worth development seems like for single-family and rental house costs. The Solar Belt, in particular Southwest Florida, is presently the epicenter of housing market weak spot proper now.
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With mortgage charges down barely from their cycle excessive, house costs falling in some markets, and incomes persevering with to tick up (at the least quicker than U.S. house costs), housing affordability is a bit much less strained heading into spring 2026 than it was heading into spring 2025.
Certainly, a new Zillow analysis shows a median-income U.S. family can now afford a $331,483 house—an enchancment of $30,302 since final 12 months.
“Along with improved affordability, that additionally displays the continued stock restoration, with 6% extra houses in the marketplace in January than a 12 months earlier. The almost 447,000 houses a median-income family might afford at this time characterize 40.3% of listings—up from 34.8% a 12 months in the past,” writes Zillow economist Kara Ng. “In markets the place house values have fallen, patrons’ {dollars} stretch even additional in actual phrases with at this time’s decrease mortgage charges.”
