BiggerPockets Real Estate Podcast

New Zillow Forecast: 10 Predictions for the 2026 Housing Market

22 snips
Jan 9, 2026
Zillow's bold predictions for the 2026 housing market spark some lively debate. From the surprising concept of 'kidfluence' shaping home choices to a rise in 'lifestyle renters' opting for long-term leases, the conversation covers it all. Home prices are expected to gain modestly while mortgage rates may hover above 6%. There's also a discussion around the potential for new construction to attract savvy investors and the implications of affordability on renters. Tune in for insights that are sure to make you think!
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INSIGHT

Prices Likely Stay Close To Flat

  • Dave Meyer and Zillow both expect national home prices to be roughly flat in 2026, with Zillow slightly positive and Dave slightly negative.
  • Balance between inventory and demand makes large national price moves unlikely next year.
INSIGHT

Underwater Mortgages Could Tick Up

  • More mortgages underwater depends on whether prices slightly decline; Dave expects a marginal increase in underwater loans if prices fall.
  • He isn't worried unless underwater mortgages combine with forced selling.
ADVICE

Plan For Rates Just Above 6%

  • Expect mortgage rates in 2026 to average just above 6%, so plan financing accordingly.
  • Use a 5.5%–6.5% range for scenario planning and stress-test deals at ~6.1% average.
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