- ResiClub
- Posts
- Zillow updates its home price forecast across over 400 housing markets
Zillow updates its home price forecast across over 400 housing markets
Zillow slightly upgrades its national home price outlook—predicting that over the next 12 months, U.S. home prices are likely to rise +2.0%.
Lance Lambert
December 23, 2025
Today’s ResiClub letter is brought to you by Lennar Investor Marketplace!
Investing in new construction helps you save on repair and maintenance costs—both upfront and down the road. Lennar ’s new homes come with warranties that provide financial safeguards for your first several years of ownership. With coverage on workmanship, materials, HVAC and other systems, you’ll save on maintenance and enjoy peace of mind.
Warranties are included with all 2,000+ new rental-ready homes on Lennar Investor Marketplace. To further reduce maintenance costs, each home is built to current building codes and features advanced weatherization, improved drainage systems and energy-efficient design. Browse Lennar’s curated properties in 90+ markets nationwide.
Join today to explore warranty-covered new homes from Lennar Investor Marketplace.
Zillow updates its regional home price forecast
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 +2.0% between November 2025 and November 2026.
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%. In November, Zillow slightly downgraded its 12-month outlook to +1.5%. This month, however, Zillow revised its 12-month outlook for U.S. home price growth back up, just a tad, to +2.0%.
While Zillow’s national home price forecast is no longer 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.
“With supply no longer as tight as it was during the pandemic, price gains are likely to stay modest. Buyers should see a bit more time and leverage when they shop, while sellers can still build equity, just at a slower pace than in past boom years,”
Click here to view an interactive version of the map below
Among the 300 largest U.S. metro area housing markets, Zillow expects the biggest home price increase between November 2025 and November 2026 to occur in these 15 metros:
Atlantic City, NJ → +5.9%
Rockford, IL → +5.6%
Knoxville, TN → +5.1%
Concord, NH → +5.1%
Green Bay, WI → +5.0%
Saginaw, MI → +4.9%
New Haven, CT → +4.7%
Appleton, WI → +4.7%
Wausau, WI → +4.7%
Fayetteville, AR → +4.6%
Jacksonville, NC → +4.6%
Kingston, NY → +4.6%
Janesville, WI → +4.6%
Bangor, ME → +4.6%
Morristown, TN → +4.6%
Among the 300 largest U.S. metro area housing markets, Zillow expects the biggest home price decline between November 2025 and November 2026 to occur in these 15 metros:
Houma, LA → -7.0%
Lake Charles, LA → -6.0%
New Orleans, LA → -4.1%
Shreveport, LA → -3.1%
Lafayette, LA → -3.0%
Alexandria, LA → -2.4%
Beaumont, TX → -2.3%
Austin, TX → -2.2%
Chico, CA → -2.0%
Punta Gorda, FL → -2.0%
Monroe, LA → -1.9%
San Francisco, CA → -1.6%
Odessa, TX → -1.5%
Corpus Christi, TX → -1.3%
Santa Rosa, CA → -1.1%
U.S. home prices, as measured by the Zillow Home Value Index, are currently up +0.2% year over year. If Zillow’s latest 12-month outlook (+2.0%) comes to fruition, it would represent a small acceleration nationally.
Below is what the current year-over-year rate of home price growth looks like for single-family and condo home prices. The Sun Belt, in particular Southwest Florida, is currently the epicenter of housing market weakness right now.
Click here to view an interactive of the map below
What about U.S. existing home sales volumes?
“Looking ahead, Zillow projects sales will strengthen in 2026 as mortgage rates trend lower and affordability improves. Existing home sales are forecast to reach 4.3 million next year, a 5.2% year‑over‑year gain. After two slow years, the recovery is expected to be led by the Southeast and West, where demand is more rate‑sensitive and is starting to rebound as borrowing costs ease.”
Are you a real estate agent?
If yes… take the Q4 2025 Zoodealio-ResiClub Real Estate Agent Survey here.
This month, we conducted the ResiClub Housing Economist 2026 Survey. Over the coming days, ResiClub paid readers will receive six forecast reports drawn from the results.