Heading into the year, Zillow economists forecasted that U.S. home prices were likely to rise 2.6 percent in 2025.
However, this year, the housing market—in particular in the Sun Belt—was softer than expected and Zillow has made several downgrades to its forecast for national home prices.
This week, newly released data from Zillow shows that U.S. home prices have decelerated to a year-over-year increase of just 0.4 percent. Zillow economists now expect U.S. home prices to decline by 0.7 percent between May 2025 and May 2026.
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