Zillow Forecasts Rental Market Relief by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22 hours ago
0mins
Should l Buy Z?
Source: PRnewswire
- Rent Growth Slowdown: Zillow forecasts that by the end of 2026, multifamily rents will remain flat, decreasing by 0.2%, while single-family rents are expected to rise only 1.1% annually, marking a significant slowdown from previous years' rapid increases and providing greater bargaining power for renters.
- Improved Affordability: In January 2026, the typical rent in the U.S. was $1,895, up just 2% from a year ago, allowing median-income households to spend only 24.3% of their income on rent, down from 25% in February 2020, indicating reduced economic pressure on renters.
- Increased Market Competition: Nearly 40% of rental listings offered at least one concession, such as a free month of rent or reduced deposits, highlighting intensified competition among property managers for tenants, although this figure is slightly below last year's record of 41.1%, it remains elevated compared to historical norms.
- Supply Increase Impacting Market: Although the peak of newly completed apartment buildings occurred in the summer of 2024, the stock of available rental units continues to grow, and with a cooling labor market leading to higher vacancy rates, renters now have significantly enhanced negotiating power for renewals and new leases.
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Analyst Views on Z
Wall Street analysts forecast Z stock price to rise
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 43.970
Low
70.00
Averages
87.40
High
100.00
Current: 43.970
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.
Zillow Forecasts Rental Market Relief by 2026
- Rent Growth Slowdown: Zillow forecasts that by the end of 2026, multifamily rents will remain flat, decreasing by 0.2%, while single-family rents are expected to rise only 1.1% annually, marking a significant slowdown from previous years' rapid increases and providing greater bargaining power for renters.
- Improved Affordability: In January 2026, the typical rent in the U.S. was $1,895, up just 2% from a year ago, allowing median-income households to spend only 24.3% of their income on rent, down from 25% in February 2020, indicating reduced economic pressure on renters.
- Increased Market Competition: Nearly 40% of rental listings offered at least one concession, such as a free month of rent or reduced deposits, highlighting intensified competition among property managers for tenants, although this figure is slightly below last year's record of 41.1%, it remains elevated compared to historical norms.
- Supply Increase Impacting Market: Although the peak of newly completed apartment buildings occurred in the summer of 2024, the stock of available rental units continues to grow, and with a cooling labor market leading to higher vacancy rates, renters now have significantly enhanced negotiating power for renewals and new leases.
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- Stock Decline: CoStar Group's stock has nearly halved over the past six months, currently priced at $48.97 with a market cap of $21 billion, reflecting investor concerns over its residential business despite the stability of its commercial core.
- Data Network Effects: CoStar has established a robust data network by connecting 8.5 million properties with over 230,000 professionals, facilitating deal closures and demonstrating its competitive edge in the commercial real estate sector.
- High Renewal Rates: CoStar boasts a 93% quarterly renewal rate, with its multifamily marketplace Apartments.com achieving a remarkable 99% renewal rate, underscoring the platform's significance and customer stickiness in the industry.
- Investment and Buyback: Despite an $850 million investment in Homes.com leading to net operating losses, CoStar plans to cut $300 million in spending and has authorized a $1.5 billion stock buyback, projecting an EBITDA of approximately $770 million for 2026, indicating confidence in future profitability.
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- In-Game Housing Launch: Blizzard Entertainment's World of Warcraft officially introduces player housing, marking a significant upgrade in gameplay that is expected to attract more players and enhance user engagement.
- Zillow Collaboration: Zillow partners with Blizzard to launch Zillow for Warcraft®, a dedicated microsite that allows players to browse a curated selection of in-game homes from Azeroth, enhancing the immersive experience of the game.
- Enhanced User Experience: With Zillow's custom experience, players can explore in-game homes more intuitively, increasing their engagement with the virtual world while also opening new market opportunities for Zillow.
- Market Potential: This collaboration not only showcases Zillow's innovative capabilities in the gaming sector but may also attract a crossover audience of real estate enthusiasts and gamers, further expanding its user base and brand influence.
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Zillow Partners with Blizzard to Launch Player Housing in World of Warcraft
- Player Housing Launch: Blizzard Entertainment's World of Warcraft officially introduces player housing, with Zillow collaborating to launch the Zillow for Warcraft microsite, allowing players to browse a curated selection of in-game homes from Azeroth, fulfilling nearly two decades of player anticipation and significantly enhancing immersion and community belonging.
- Virtual Home Exploration: Zillow for Warcraft features 3D home tours and SkyTour-style visuals, showcasing player-created and Blizzard-designed homes, which not only boosts player creativity and self-expression but also provides Zillow with a new platform to enhance its brand presence in the gaming sector.
- Marketing Collaboration: This partnership is supported by a co-branded campaign across social media, Reddit, and TikTok, encouraging players to share their virtual homes, which further elevates Zillow's brand visibility and attracts the attention of younger audiences.
- Brand Strategy Alignment: Zillow's “Someday Starts Today” brand campaign complements this collaboration by emphasizing its mission to help people realize their housing dreams in the real world, while also showcasing its cultural and gaming influence, thereby reinforcing its market leadership.
See More
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- Medpace Holdings: Medpace Holdings (NASDAQ:MEDP) experienced a slump of 20.69% this week, driven by disappointing fourth-quarter results and multiple analyst firms lowering their price targets, which intensified negative sentiment around the stock.
- Zillow Group: Zillow Group (NASDAQ:Z) decreased by 20.89% this week due to mixed fourth-quarter financial results that failed to boost investor confidence, leading to downward pressure on its stock price.
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- Earnings Performance: Zillow's fourth-quarter revenue of approximately $654 million slightly exceeded Wall Street expectations, yet the adjusted earnings per share of 39 cents fell short of consensus, indicating pressure on profitability.
- Future Guidance: Management has guided first-quarter revenue to a range of $700 million to $710 million, surpassing market estimates of $690 million, suggesting ongoing top-line growth potential despite challenges.
- Legal Costs and Competitive Pressure: In the near term, legal expenses and new rivals are weighing on Zillow's valuation; however, if legal spending normalizes and the housing market recovers, it could benefit the company in the long run.
- Technical Indicator Analysis: Zillow's RSI stands at 16.12, indicating the stock is in oversold territory, which may suggest a potential reversal; however, the MACD is below its signal line, reinforcing bearish sentiment, prompting traders to remain cautious.
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Zillow Forecasts Rental Market Relief by 2026
- Rent Growth Slowdown: Zillow forecasts that by the end of 2026, multifamily rents will remain flat, decreasing by 0.2%, while single-family rents are expected to rise only 1.1% annually, marking a significant slowdown from previous years' rapid increases and providing greater bargaining power for renters.
- Improved Affordability: In January 2026, the typical rent in the U.S. was $1,895, up just 2% from a year ago, allowing median-income households to spend only 24.3% of their income on rent, down from 25% in February 2020, indicating reduced economic pressure on renters.
- Increased Market Competition: Nearly 40% of rental listings offered at least one concession, such as a free month of rent or reduced deposits, highlighting intensified competition among property managers for tenants, although this figure is slightly below last year's record of 41.1%, it remains elevated compared to historical norms.
- Supply Increase Impacting Market: Although the peak of newly completed apartment buildings occurred in the summer of 2024, the stock of available rental units continues to grow, and with a cooling labor market leading to higher vacancy rates, renters now have significantly enhanced negotiating power for renewals and new leases.
See More
CoStar Group Stock Experiences Significant Volatility
- Stock Decline: CoStar Group's stock has nearly halved over the past six months, currently priced at $48.97 with a market cap of $21 billion, reflecting investor concerns over its residential business despite the stability of its commercial core.
- Data Network Effects: CoStar has established a robust data network by connecting 8.5 million properties with over 230,000 professionals, facilitating deal closures and demonstrating its competitive edge in the commercial real estate sector.
- High Renewal Rates: CoStar boasts a 93% quarterly renewal rate, with its multifamily marketplace Apartments.com achieving a remarkable 99% renewal rate, underscoring the platform's significance and customer stickiness in the industry.
- Investment and Buyback: Despite an $850 million investment in Homes.com leading to net operating losses, CoStar plans to cut $300 million in spending and has authorized a $1.5 billion stock buyback, projecting an EBITDA of approximately $770 million for 2026, indicating confidence in future profitability.
See More
Zillow Partners with Blizzard to Launch In-Game Housing Experience
- In-Game Housing Launch: Blizzard Entertainment's World of Warcraft officially introduces player housing, marking a significant upgrade in gameplay that is expected to attract more players and enhance user engagement.
- Zillow Collaboration: Zillow partners with Blizzard to launch Zillow for Warcraft®, a dedicated microsite that allows players to browse a curated selection of in-game homes from Azeroth, enhancing the immersive experience of the game.
- Enhanced User Experience: With Zillow's custom experience, players can explore in-game homes more intuitively, increasing their engagement with the virtual world while also opening new market opportunities for Zillow.
- Market Potential: This collaboration not only showcases Zillow's innovative capabilities in the gaming sector but may also attract a crossover audience of real estate enthusiasts and gamers, further expanding its user base and brand influence.
See More
Zillow Partners with Blizzard to Launch Player Housing in World of Warcraft
- Player Housing Launch: Blizzard Entertainment's World of Warcraft officially introduces player housing, with Zillow collaborating to launch the Zillow for Warcraft microsite, allowing players to browse a curated selection of in-game homes from Azeroth, fulfilling nearly two decades of player anticipation and significantly enhancing immersion and community belonging.
- Virtual Home Exploration: Zillow for Warcraft features 3D home tours and SkyTour-style visuals, showcasing player-created and Blizzard-designed homes, which not only boosts player creativity and self-expression but also provides Zillow with a new platform to enhance its brand presence in the gaming sector.
- Marketing Collaboration: This partnership is supported by a co-branded campaign across social media, Reddit, and TikTok, encouraging players to share their virtual homes, which further elevates Zillow's brand visibility and attracts the attention of younger audiences.
- Brand Strategy Alignment: Zillow's “Someday Starts Today” brand campaign complements this collaboration by emphasizing its mission to help people realize their housing dreams in the real world, while also showcasing its cultural and gaming influence, thereby reinforcing its market leadership.
See More
Ten Large-Cap Stocks with Worst Performance Last Week
- Astera Labs: Astera Labs (NASDAQ:ALAB) saw a significant decline of 23.74% this week after reporting fourth-quarter financial results that fell short of market expectations, raising investor concerns about its future profitability.
- Medpace Holdings: Medpace Holdings (NASDAQ:MEDP) experienced a slump of 20.69% this week, driven by disappointing fourth-quarter results and multiple analyst firms lowering their price targets, which intensified negative sentiment around the stock.
- Zillow Group: Zillow Group (NASDAQ:Z) decreased by 20.89% this week due to mixed fourth-quarter financial results that failed to boost investor confidence, leading to downward pressure on its stock price.
- AST SpaceMobile: AST SpaceMobile (NASDAQ:ASTS) fell 17.9% this week after announcing a $1 billion convertible senior notes offering, which was met with negative market reactions due to concerns over the implications of its financing plans.
See More
Zillow Stock Outlook: Revenue Beats, EPS Misses
- Earnings Performance: Zillow's fourth-quarter revenue of approximately $654 million slightly exceeded Wall Street expectations, yet the adjusted earnings per share of 39 cents fell short of consensus, indicating pressure on profitability.
- Future Guidance: Management has guided first-quarter revenue to a range of $700 million to $710 million, surpassing market estimates of $690 million, suggesting ongoing top-line growth potential despite challenges.
- Legal Costs and Competitive Pressure: In the near term, legal expenses and new rivals are weighing on Zillow's valuation; however, if legal spending normalizes and the housing market recovers, it could benefit the company in the long run.
- Technical Indicator Analysis: Zillow's RSI stands at 16.12, indicating the stock is in oversold territory, which may suggest a potential reversal; however, the MACD is below its signal line, reinforcing bearish sentiment, prompting traders to remain cautious.
See More
