Zillow Downgrades 2025 Home Price Forecast

Zillow has revised its U.S. home price forecast via ResiClub, now predicting just a 0.8% increase from February 2025 to February 2026, down from earlier projections of 1.1% and 2.9%. This reflects rising inventory levels nationally and ongoing affordability issues, which are dampening buyer demand. Zillow expects only 4.1 million existing home sales in 2025, significantly below pre-pandemic levels.

  • 2025 existing home sales projected at 4.1M, down from 5.3M in 2019.

  • Temporary spring sales boost expected, followed by a seasonal dip.

  • Single-family rents forecasted to rise 3.6%; multifamily rents up 2.5%.

  • Rents continue climbing, 3.6% for single-family homes, 2.5% for multifamily.

Ralph’s Take

Zillow just dialed back expectations again. They're now calling for a slim rise in home values for 2025 as rising inventory cools much of the national market. One exception? The Northeast, where inventory remains tight, pushing appreciation above the national average.

Posted by Ralph Ragette Jr on

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