• Home value growth is expected to be modest, with prices set to rise 1.2% over the next 12 months amid soft demand and accumulating inventory. 
• Home sales are expected to reach 4.09 million in 2025, up 0.6% from 2024, with momentum improving in 2026 as mortgage rates ease. 
• Single-family rents are expected to rise 2.2% over the next year as elevated mortgage rates keep more buyers renting, while apartment rents dip 0.1% amid high vacancies and a wave of new buildings.

Zillow’s latest forecast calls for an increase in both home values and existing home sales in the year ahead.

Home values are projected to rise 1.2% over the next 12 months. With new listings outpacing demand and mortgage rates still elevated, affordability remains tight, easing price pressure. That gives buyers modest leverage and keeps appreciation muted. If rates and incomes track expectations, affordability should gradually improve.

Existing home sales are now projected to reach 4.09 million in 2025, in line with last month’s expectation. This would represent a 0.6% increase over 2024. Looking ahead, sales are projected to strengthen in 2026 as mortgage rates decline further, inventory continues to recover and pent‑up demand from this year’s slow shopping season returns to the market. Zillow forecasts 4.26 million existing home sales, a 4.3% year-over-year increase, marking a modest rebound after two years of stagnation.

Single‑family rents are expected to rise 2.2% over the next year, while multifamily rents slip 0.1%. Elevated mortgage rates keep more would‑be buyers renting and single‑family supply tight. Meanwhile, multifamily is digesting an unusually large wave of new supply, pushing vacancies higher and prompting concessions. This is putting downward pressure on multifamily rents.