Zillow forecasts mortgage affordability improvement by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 Jan 26
Source: PRnewswire
Zillow Group Inc. shares fell as the stock hit a 20-day low amid broader market gains.
The company forecasts that mortgage payments will decrease to 31.8% of median household income by the end of 2026, indicating a gradual recovery in the housing market. This improvement is attributed to rising incomes and slowing home price growth, which will alleviate financial pressure on buyers. However, regional disparities remain, with Hartford expected to see worsening affordability.
This forecast suggests potential investment opportunities in the housing market, as buyers may benefit from improved affordability and financial strategies.
Analyst Views on Z
Wall Street analysts forecast Z stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for Z is 87.40 USD with a low forecast of 70.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 65.980
Low
70.00
Averages
87.40
High
100.00
Current: 65.980
Low
70.00
Averages
87.40
High
100.00
About Z
Zillow Group, Inc. helps people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and buying, selling, financing, and renting experiences. The Company’s affiliates, subsidiaries, and brands include Zillow, Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, Out East, StreetEasy, HotPads, ShowingTime+, Spruce, and Follow Up Boss. It helps renters, buyers, sellers, and real estate professionals across all their residential real estate needs through its housing super app, which serves as an ecosystem of connected solutions for the tasks and services related to moving. It provides integrated transaction experience for movers through Zillow, its network of partners, its affiliated brands, and through a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Follow Up Boss and Spruce. It offers multifamily property managers a variety of advertising products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
