Zillow has updated its forecast model, projecting a decline in U.S. home prices by -1.7% between March 2025 and March 2026. This shift reflects growing concerns over housing affordability due to rising mortgage rates and post-pandemic price surges. Zillow’s economists attribute the slowdown to increased listings, which provide buyers with more options and bargaining power. Additionally, potential buyers are opting to remain renters due to affordability challenges. According to Zillow chief economist Skylar Olsen, a mortgage on a typical home now requires about 35.3% of median household income, making it unaffordable for many. The weakest home price appreciation is expected in Gulf regions, while some Northeastern areas may still see modest growth.
— new from ResiClub
