Zillow’s January Market Report Shows Improved Affordability for Home Buyers
U.S. home values have fallen for six consecutive months, according to the Zillow Home Value Index
February 4, 2026
Written by Mischa Fisher
U.S. home values fell on a monthly basis for the sixth consecutive month in January, according to the Zillow® Home Value Index. This trend mirrors last year, when home values fell on a monthly basis in each month from August 2024 to February 2025. The monthly mortgage payment on a typical U.S. home is now 8.4% less expensive than a year ago, driven down by lower mortgage rates.
New listings and the early read on sales both fell in January compared to last year, likely influenced by poor weather conditions in much of the country. Buyers have met a friendlier shopping environment than last year, with homes on the market longer before selling and fewer homes selling above list price.
The housing market is entering 2026 after three very low-volume years, where transactions have bounced along the bottom and affordability has been a chronic struggle. The 2026 forecast for both sales and affordability is one of gradual improvement. January was a cautious first step along that path, as winter weather impacted many major markets. With the storms seemingly in the rearview mirror, sales volume is expected to bounce back as we approach spring. Housing affordability continues to improve for prospective homebuyers, while modest growth in the Zillow Observed Rent Index points to continued cooling in shelter inflation.
Home Values & Mortgage Payments
- The typical U.S. home value is $358,968.
- The Zillow Home Value Index (ZHVI) fell 0.4% month over month in January. Home values are 0.2% higher than a year earlier.
- The monthly mortgage payment on a typical U.S. home is $1,733, assuming a 20% down payment and excluding taxes and insurance. That is 8.4% lower than last year.
Inventory
- There were 1.11 million homes for sale nationwide in January.
- Active inventory was 6% higher than a year earlier. Inventory fell 0.1% from December.
- New for-sale listings totaled 269,922 in January, down 5.5% from a year earlier, and up 54.8% from December.
Sales
- 219,644 homes were sold in January, according to the preliminary Zillow sales count nowcast. That is 4% lower than a year earlier, and down 26.4% from December. These figures will be revised mid month.
- Newly pending listings, which measures listings that changed from for-sale to pending status rather than closed sales, show 1.8% year-over-year growth and a 20.8% increase over December.
Competition
- Homes took a median of 47 days to go pending in January. That was eight days longer than a year earlier and four days longer than December.
- The share of listings with a price cut in January was 22%. That was down 0.7 percentage points from a year earlier, and up 5.2 percentage points from December.
- 22.4% of homes sold above list price in December, the most recent data available. That was 2.3 percentage points lower than a year earlier, and 1.6 percentage points lower than November.
Rents
- The typical rent nationwide is $1,895, according to the Zillow Observed Rent Index. That’s 2% higher than a year earlier, and up 0.1% from December.
- 38.8% of rental listings on Zillow offered a concession in January. That’s 2.3 percentage points lower than a year earlier, and down 0.6 percentage points from December.
Local data can be found on Zillow’s market explorer. The Zillow February Market Report is expected to be released on March 4.
| Metro Area* | Typical Home Value (ZHVI) | Home Value Change: MoM | Home Value Change: YoY | Inventory Change: YoY | Sales Count Nowcast Change: YoY | Typical Rent (ZORI) | Rent Change: MoM | Rent Change: YoY |
|---|---|---|---|---|---|---|---|---|
| United States | $358,968 | -0.4% | 0.2% | 6.0% | -4.0% | $1,895 | 0.1% | 2.0% |
| New York, NY | $707,558 | 0.2% | 3.9% | 1.5% | -12.4% | $3,232 | -0.1% | 4.3% |
| Los Angeles, CA | $946,065 | 0.1% | -0.5% | 6.5% | 0.2% | $2,885 | 0.1% | 1.6% |
| Chicago, IL | $336,389 | -0.2% | 4.0% | -5.0% | -14.0% | $2,091 | 0.5% | 5.4% |
| Dallas, TX | $357,536 | -0.6% | -3.9% | 6.1% | 1.3% | $1,633 | -0.1% | 0.3% |
| Houston, TX | $302,356 | -0.5% | -2.2% | 16.4% | -6.8% | $1,612 | -0.1% | 0.0% |
| Washington, DC | $568,102 | -0.2% | -0.4% | 21.8% | -8.0% | $2,333 | 0.1% | 0.4% |
| Philadelphia, PA | $375,978 | -0.2% | 2.6% | 2.4% | -13.7% | $1,849 | 0.1% | 2.9% |
| Miami, FL | $467,850 | -0.2% | -4.3% | -2.3% | -5.3% | $2,645 | 0.0% | 0.5% |
| Atlanta, GA | $373,781 | -0.5% | -2.7% | 6.4% | -18.3% | $1,812 | 0.1% | 2.1% |
| Boston, MA | $712,622 | -0.4% | 1.7% | 8.0% | -1.4% | $3,049 | 0.5% | 1.8% |
| Phoenix, AZ | $443,565 | -0.2% | -2.3% | 6.4% | 0.6% | $1,718 | 0.1% | -0.6% |
| San Francisco, CA | $1,092,908 | -0.2% | -2.1% | -6.3% | 0.0% | $3,064 | 0.4% | 5.8% |
| Riverside, CA | $577,131 | -0.1% | -1.7% | 1.7% | -3.4% | $2,464 | 0.2% | 1.8% |
| Detroit, MI | $255,825 | -0.6% | 2.8% | 10.4% | -17.0% | $1,455 | 0.2% | 2.8% |
| Seattle, WA | $732,016 | -0.2% | -1.5% | 19.9% | -1.3% | $2,183 | -0.1% | 2.2% |
| Minneapolis, MN | $376,354 | -0.4% | 1.6% | 5.1% | -12.3% | $1,665 | 0.1% | 4.2% |
| San Diego, CA | $905,983 | -0.2% | -2.0% | 5.7% | -9.2% | $2,871 | 0.1% | 1.3% |
| Tampa, FL | $352,904 | -0.4% | -4.8% | 5.2% | -6.1% | $1,986 | -0.1% | -1.2% |
| Denver, CO | $558,305 | -0.4% | -3.2% | 7.0% | -8.2% | $1,838 | -0.1% | -1.1% |
| Baltimore, MD | $391,799 | -0.4% | 0.6% | 19.0% | -8.4% | $1,855 | 0.4% | 2.6% |
| St. Louis, MO | $263,241 | -0.3% | 2.5% | 7.9% | -0.1% | $1,409 | 0.3% | 3.6% |
| Orlando, FL | $381,041 | -0.4% | -4.0% | 3.0% | 1.6% | $1,917 | 0.2% | 0.5% |
| Charlotte, NC | $381,064 | -0.4% | -0.8% | 12.1% | -12.6% | $1,704 | 0.0% | 0.7% |
| San Antonio, TX | $274,114 | -0.5% | -2.6% | 10.9% | -4.8% | $1,380 | 0.0% | -1.2% |
| Portland, OR | $537,199 | -0.3% | -1.1% | 10.2% | -7.5% | $1,778 | -0.2% | 0.9% |
| Sacramento, CA | $566,491 | -0.4% | -2.1% | 0.2% | -6.4% | $2,197 | -0.2% | 1.9% |
| Pittsburgh, PA | $218,792 | -0.7% | 1.2% | 3.7% | -8.2% | $1,449 | 0.4% | 4.1% |
| Cincinnati, OH | $297,473 | -0.4% | 2.4% | 11.9% | -5.9% | $1,522 | 0.4% | 2.7% |
| Austin, TX | $418,101 | -0.7% | -5.9% | 3.7% | -8.5% | $1,561 | 0.0% | -2.6% |
| Las Vegas, NV | $425,751 | -0.4% | -2.7% | 13.2% | -8.2% | $1,716 | 0.0% | 0.1% |
| Kansas City, MO | $313,709 | -0.2% | 2.8% | 10.9% | 10.8% | $1,455 | 0.2% | 3.8% |
| Columbus, OH | $318,819 | -0.4% | 0.9% | 9.5% | -5.7% | $1,454 | -0.3% | 1.6% |
| Indianapolis, IN | $284,954 | -0.4% | 1.1% | 15.3% | -10.1% | $1,508 | 0.2% | 3.2% |
| Cleveland, OH | $237,811 | -0.6% | 4.2% | 3.9% | -13.6% | $1,390 | 0.6% | 4.2% |
| San Jose, CA | $1,563,569 | 0.0% | -1.4% | 12.7% | -9.7% | $3,406 | 0.3% | 5.1% |
| Nashville, TN | $445,010 | -0.4% | -0.8% | 11.4% | -7.3% | $1,770 | -0.1% | 0.4% |
| Virginia Beach, VA | $361,608 | -0.1% | 1.7% | 5.2% | 10.6% | $1,795 | 0.4% | 5.4% |
| Providence, RI | $504,547 | -0.2% | 2.7% | 4.4% | -5.5% | $2,078 | 0.1% | 4.5% |
| Jacksonville, FL | $345,165 | -0.3% | -2.7% | -5.7% | -6.1% | $1,659 | -0.1% | 0.2% |
| Milwaukee, WI | $365,994 | -0.3% | 4.8% | 1.8% | -3.5% | $1,458 | 0.2% | 3.9% |
| Oklahoma City, OK | $240,354 | -0.2% | 1.0% | 9.1% | -9.6% | $1,347 | 0.1% | 2.7% |
| Raleigh, NC | $428,618 | -0.5% | -2.6% | 29.5% | -11.4% | $1,655 | 0.1% | 0.2% |
| Memphis, TN | $238,977 | -0.5% | -0.6% | 6.6% | -11.7% | $1,415 | -0.1% | 1.7% |
| Richmond, VA | $382,479 | -0.2% | 1.7% | 6.1% | -1.6% | $1,639 | 0.5% | 3.5% |
| Louisville, KY | $271,069 | -0.1% | 2.1% | 20.1% | 4.9% | $1,352 | 0.2% | 2.2% |
| New Orleans, LA | $253,919 | 0.0% | 1.4% | 2.2% | 17.4% | $1,568 | 0.3% | 0.4% |
| Salt Lake City, UT | $557,054 | -0.1% | 1.9% | 12.4% | 6.7% | $1,581 | -1.1% | -0.3% |
| Hartford, CT | $379,314 | -0.3% | 4.9% | -0.2% | -6.4% | $1,864 | 0.0% | 3.1% |
| Buffalo, NY | $270,506 | -0.9% | 3.9% | 3.7% | -5.9% | $1,365 | 0.6% | 3.4% |
| Birmingham, AL | $252,754 | -0.4% | 0.6% | 11.8% | -27.2% | $1,385 | -0.1% | 1.9% |
*Table ordered by market size
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