Housing Market Should Heat Up in 2026, Zillow Says -- Market Talk

Dow Jones

2025/12/04

1031 ET - Economists at Zillow expect 2026 to bring steadier footing to the housing market as affordability improves and the ways Americans want to live continue to evolve. On the heels of a year of small wins for home buyers, buyers and sellers can expect a modest rise in home values, a few more sales and mortgage rates holding above 6%. Many apartment renters should look forward to some affordability relief, Zillow says, however, those in New York City should not. Zillow economists expect U.S. home values to grow 1.2% in 2026. Next year's forecast reflects expectations of gradually improving affordability and steady buyer demand. Mortgage costs should ease a bit in 2026, helping more buyers stay in the market and supporting modest price growth in many parts of the country. (chris.wack@wsj.com)

(END) Dow Jones Newswires

December 04, 2025 10:31 ET (15:31 GMT)

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On the heels of a year of small wins for home buyers, buyers and sellers can expect a modest rise in home values, a few more sales and mortgage rates holding above 6%. Many apartment renters should look forward to some affordability relief, Zillow says, however, those in New York City should not. Zillow economists expect U.S. home values to grow 1.2% in 2026. Next year's forecast reflects expectations of gradually improving affordability and steady buyer demand. Mortgage costs should ease a bit in 2026, helping more buyers stay in the market and supporting modest price growth in many parts of the country. 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