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December 27.2025

2 Minutes Read

Zillow's Home Price Forecast: What to Expect in 2026

Map showing Zillow home price forecast trends across US cities, 2026.

Understanding Zillow's Revised Home Price Forecast

Zillow's latest update on home prices indicates a modest national growth of 2% expected between November 2025 and November 2026. This slight upgrade comes after a challenging year marked by a downward adjustment of predictions. Initially, Zillow had hoped for a more optimistic growth rate of 2.6%, which later plummeted to -1.7% following unexpected market softening. As we enter 2026, the real estate landscape is beginning to stabilize.

Regional Insights into Price Changes

Among the expected fluctuations, specific metropolitan areas are projected to see significant home price changes. For instance, Atlantic City, NJ, is predicted to lead the charge with a 5.9% increase, followed closely by Rockford, IL, at 5.6% and Knoxville, TN, at 5.1%. On the downside, cities like Houma, LA, and Lake Charles, LA, are foreseen to face the steepest declines at -7.0% and -6.0%, respectively. Such disparities highlight the importance of localized market awareness in making informed decisions about buying or selling properties.

The Impact of Market Conditions on Accessibility

The improved forecast for 2026 suggests better affordability for homebuyers, as rising incomes are anticipated to outpace home price growth. Buyers can expect more options as inventory increases and competition stabilizes. Zillow's chief economist notes that this market is beginning to balance, affording buyers and sellers increased leverage. However, while affordability may indeed enhance for buyers, sellers can expect to build equity more slowly compared to previous years' market activity.

Technological Innovations Shaping Real Estate

In addition to market trends, advancements in technology, particularly artificial intelligence, are set to reshape real estate transactions. Zillow predicts AI will facilitate smoother transactions by connecting buyers and sellers more effectively and automating various administrative tasks. This shift could enhance decision-making and streamline the overall home buying and selling experience, making it more accessible for all parties involved.

Looking Ahead: What This Means for Future Homeowners

Understanding these projected trends is crucial for potential homeowners. As the market evolves, buyers are encouraged to stay informed about local conditions and to consider how technological advancements can impact their home search. For those considering home investments, this forecast presents both opportunities and challenges, necessitating a strategic approach to navigating the housing landscape.

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Zillow's Home Price Forecast: What to Expect in 2026

Understanding Zillow's Revised Home Price Forecast

Regional Insights into Price Changes

The Impact of Market Conditions on Accessibility

Technological Innovations Shaping Real Estate

Looking Ahead: What This Means for Future Homeowners

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