"Heading into 2025, Zillow's 12-month forecast for U.S. home prices was +2.6%. However, many housing markets across the country softened faster than expected, prompting Zillow to issue several downward revisions. By April 2025, Zillow had cut its 12-month national home price outlook to -1.7%. In the second half of this year, Zillow began upgrading its forecast. In August, it revised its 12-month outlook to +0.4%. In September, the forecast increased to +1.2%, and in October Zillow upgraded its 12-month national home price forecast to +1.9%."
"Among the 300 largest U.S. metro-area housing markets, Zillow expects the biggest home price increase from November 2025 to November 2026 to occur in these 15 metros: Atlantic City, New Jersey → +5.9% Rockford, Illinois → +5.6% Knoxville, Tennessee → +5.1% Concord, New Hampshire → +5.1% Green Bay, Wisconsin → +5% Saginaw, Michigan → +4.9% New Haven, Connecticut → +4.7% Appleton, Wisconsin → +4.7% Wausau, Wisconsin → +4.7%"
Zillow economists updated their 12-month forecast, projecting U.S. home prices will rise 2% between November 2025 and November 2026. Forecast revisions swung from +2.6% at the start of 2025 to -1.7% by April, then gradually recovered through the second half of the year to reach +2%. The national outlook indicates a soft housing market in 2026 with modest affordability gains as U.S. income growth slightly outpaces home price growth. Several smaller metros across the country are expected to outperform the national average, with Atlantic City, Rockford, Knoxville, Concord, and multiple Wisconsin metros among the top performers.
Read at Fast Company
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