Zillow revises its home price forecast across over 400 housing markets-see the map

"Zillow economists just published their updated 12-month forecast, projecting that U.S. home prices-as measured by the Zillow Home Value Index-will rise +0.9% between January 2026 and January 2027. That's a mild downward revision from its 12-month forecast published last month (+2.1%)."

"While Zillow's national home price forecast isn't negative-it isn't exactly bullish either. They're calling for a soft national housing market in 2026, one where national housing affordability may improve slightly as U.S. income growth outpaces U.S. home price growth."

Zillow economists released an updated 12-month forecast predicting U.S. home prices will increase 0.9% between January 2026 and January 2027, down from the prior month's projection of 2.1% growth. Current home prices, measured by the Zillow Home Value Index, are up 0.2%. The forecast suggests prices will maintain a similar modest pace. Rather than bullish growth, Zillow anticipates a soft national housing market in 2026. A positive development is that national housing affordability may improve slightly as income growth is expected to outpace home price growth. Zillow also identifies significant regional variation, with the 300 largest U.S. metro areas expected to experience different price trajectories, with 15 specific metros projected to see the largest home price increases.

Read at Fast Company