Zillow Forecasts Flat U.S. Home Price Growth for Next Year

Zillow economists have released an updated 12-month forecast, projecting that U.S. home prices will see a 0.0% change between June 2026 and June 2027. This represents a minor upward adjustment from their May forecast, which predicted a -0.2% change.

Currently, U.S. home prices are up 1.1% year-over-year. Zillow's latest outlook anticipates that national home prices will continue to grow at a subdued pace, similar to the current trend. If home price growth remains below wage growth, underlying market fundamentals are expected to improve gradually. This scenario could also lead to a slow improvement in housing affordability.

While the national forecast is not negative, it indicates a cautious outlook for the housing market. The company suggests a soft market in 2026, where income growth is expected to outpace home price appreciation, potentially improving affordability for buyers.

Among major metropolitan areas, Zillow forecasts the most significant price increases in Rockford, Illinois (+4.3%), Syracuse, New York (+3.6%), and Atlantic City, New Jersey (+3.5%). Conversely, the largest price declines are anticipated in Austin, Texas (-6.4%), Houma, Louisiana (-6.4%), and Lake Charles, Louisiana (-5.2%).