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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 Residence Worth Index—will rise 2% between November 2025 and November 2026.
Heading into 2025, Zillow’s 12-month forecast for U.S. dwelling costs was +2.6%. Nonetheless, many housing markets throughout the nation softened quicker than anticipated, prompting Zillow to subject a number of downward revisions. By April 2025, Zillow had minimize its 12-month nationwide dwelling worth outlook to -1.7%.
Within the second half of this yr, Zillow started upgrading its forecast. 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 dwelling worth forecast to +1.9%. In November, Zillow barely downgraded its 12-month outlook to +1.5%. This month, nonetheless, Zillow revised its 12-month outlook for U.S. dwelling worth development again up, only a tad, to +2%.
Whereas Zillow’s nationwide dwelling worth forecast is now not detrimental—it isn’t precisely bullish both. It’s calling for a comfortable nationwide housing market in 2026, one the place nationwide housing affordability might enhance barely as U.S. earnings development outpaces U.S. dwelling worth development.
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Among the many 300 largest U.S. metro-area housing markets, Zillow expects the largest dwelling worth enhance from November 2025 to November 2026 to happen in these 15 metros:
- Atlantic Metropolis, New Jersey → +5.9%
- Rockford, Illinois → +5.6%
- Knoxville, Tennessee → +5.1%
- Harmony, New Hampshire → +5.1%
- Inexperienced Bay, Wisconsin → +5%
- Saginaw, Michigan → +4.9%
- New Haven, Connecticut → +4.7%
- Appleton, Wisconsin → +4.7%
- Wausau, Wisconsin → +4.7%
- Fayetteville, Arkansas → +4.6%
- Jacksonville, North Carolina → +4.6%
- Kingston, New York → +4.6%
- Janesville, Wisconsin → +4.6%
- Bangor, Maine → +4.6%
- Morristown, Tennessee → +4.6%
Among the many 300 largest U.S. metro-area housing markets, Zillow expects the largest dwelling worth decline from November 2025 to November 2026 to happen in these 15 metros:
- Houma, Louisiana → -7.0%
- Lake Charles, Louisiana → -6%
- New Orleans → -4.1%
- Shreveport, Louisiana → -3.1%
- Lafayette, Louisiana → -3%
- Alexandria, Louisiana → -2.4%
- Beaumont, Texas → -2.3%
- Austin → -2.2%
- Chico, California → -2%
- Punta Gorda, Florida → -2%
- Monroe, Louisiana → -1.9%
- San Francisco → -1.6%
- Odessa, Texas → -1.5%
- Corpus Christi, Texas → -1.3%
- Santa Rosa, California → -1.1%
U.S. dwelling costs, as measured by the Zillow Residence Worth Index, are at the moment up 0.01% yr over yr. If Zillow’s newest 12-month outlook (+2%) involves fruition, it will signify a small acceleration nationally.
Beneath is what the present year-over-year charge of dwelling worth development appears like for single-family and rental dwelling costs. The Sunbelt, in particular Southwest Florida, is at the moment the epicenter of housing market weak spot proper now.
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“With provide now not as tight because it was in the course of the pandemic, worth beneficial properties are more likely to keep modest. Patrons ought to see a bit extra time and leverage after they store, whereas sellers can nonetheless construct fairness, simply at a slower tempo than in previous increase years,” wrote Zillow economists in a report revealed on Monday.
Zillow economists added: “Trying forward, Zillow tasks gross sales will strengthen in 2026 as mortgage charges pattern decrease and affordability improves. Present dwelling gross sales are forecast to succeed in 4.3 million subsequent yr, a 5.2% yr‑over‑yr achieve. After two gradual years, the restoration is anticipated to be led by the Southeast and West, the place demand is extra charge‑delicate and is beginning to rebound as borrowing prices ease.”
