Zillow has updated its home price forecast, predicting a stronger U.S. housing market through 2026. The upgrade affects 400 markets across the country, with expectations that home values will rise at a faster pace than previously anticipated. Factors such as limited housing supply and steady demand are contributing to the more optimistic outlook. Some regional markets—particularly in the South and Midwest—are expected to see the greatest gains.
According to Zillow economists, the national pace of home price appreciation should remain positive despite ongoing affordability concerns. In particular, homes priced below $400,000 are likely to see strong competition due to sustained buyer interest and constrained inventory. Meanwhile, higher-cost markets like San Jose and San Francisco may stabilize or grow slowly as buyers remain cautious in the face of elevated mortgage rates.
Read more about Arizona home prices.