Zillow Forecasts Mortgage Affordability to Improve to 31.8% by Year-End 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Source: PRnewswire
- Improvement in Affordability: By the end of 2026, mortgage payments in 20 major cities are expected to not exceed 30% of median household income, marking the highest level since 2022 and indicating a gradual recovery in the housing market.
- Income and Price Dynamics: Zillow forecasts that as incomes rise and home price growth slows, the national mortgage payment share of median household income will decrease from 32.6% to 31.8% by 2026, alleviating financial pressure on buyers.
- Market Variability: While home values are expected to rise in 41 of the 50 largest metros, Hartford is the only major city predicted to see worsening affordability, highlighting regional disparities and potential investment opportunities.
- Buyer Strategy Recommendations: Zillow advises buyers to utilize down payment assistance programs to overcome financial hurdles and emphasizes the importance of understanding financial situations in order to maintain a competitive edge in a challenging market.
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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.
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