Keep pulling the thread on United States.
Zillow predicts that housing affordability in the U.S. will improve in 2026.
Zillow forecasts that 20 of the 50 largest U.S. metropolitan areas will be considered "affordable" by the end of 2026.
Zillow predicts that U.S. home prices will rise by 1.9% in 2026.
Zillow's market outlook states there will be no housing crash, no major reset, and no return to pre-2020 affordability levels.
Home builder Lennar has experienced a 27% crash in prices over the past three years.
Home buying activity in California recently fell to its second-lowest level in the last 21 years.
According to Adam data, 23,317 homes were sold across California in November 2025, an 8% decline from the previous year and 30% below the historical average.
In 2023, U.S. housing affordability reached a record low, with mortgage payments consuming approximately 38.2% of the median household income.
In 2023, only seven of the 50 largest metropolitan areas in the United States were deemed affordable.
Zillow projects that by the end of 2026, mortgage payments will consume 31.8% of the median U.S. household income.
The average U.S. homeowner currently faces an additional $20,000 per year in expenses beyond their mortgage, including property taxes, insurance, and maintenance.
Zillow predicts that home prices will increase in 41 of the 50 largest U.S. metropolitan areas during 2026.