Zillow Reveals Most Buyer-Friendly Housing Markets of 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Should l Buy Z?
Source: PRnewswire
- Buyer-Friendly Markets: Indianapolis, Atlanta, and Charlotte are identified as the most buyer-friendly markets for 2026, where cooling prices combined with expected appreciation provide buyers with more options within budget while reducing competitive pressures.
- Reduced Buying Stress: With less competition, buyers in these markets have more time to make decisions and avoid stressful bidding wars, leading to a more relaxed home shopping experience.
- Affordability Metrics: In five of the top ten markets, a median household can afford a typical home, with mortgage payments below 30% of income, which presents a favorable opportunity for first-time homebuyers.
- Optimistic Market Outlook: Zillow forecasts modest national home value growth in 2026, with mortgage rates expected to continue edging down toward 6% or lower, further stimulating home sales and enhancing market vitality.
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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: 40.490
Low
70.00
Averages
87.40
High
100.00
Current: 40.490
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.
First-Time Homebuyers Find Opportunities in Sun Belt and Midwest
- Market Analysis: Zillow's latest analysis identifies Jacksonville, Birmingham, and San Antonio as top markets for first-time buyers in 2026, where improved affordability and increased inventory are expected to significantly reduce competition, thus providing better purchasing opportunities.
- Reduced Rent Burden: In Jacksonville, typical rent consumes 23.1% of household income, while Birmingham and San Antonio are at 21.1% and 20.2%, respectively; these lower rent burdens facilitate savings for down payments, enhancing the willingness to buy among first-time buyers.
- Inventory Recovery: The rapid recovery of inventory in southern markets has brought housing supply closer to pre-pandemic levels, although overall inventory remains 20% below pre-pandemic norms, the relative improvement offers first-time buyers more choices.
- Economic Environment Changes: Despite rising mortgage rates impacting affordability, the overall improvement in economic conditions and rising incomes have made the home-buying outlook for first-time buyers better than last year, indicating a gradual market recovery.
See More
Slight Changes in Mortgage Rates Today
- Mortgage Rate Changes: According to Zillow, the 30-year fixed mortgage rate increased by one basis point to 6.30%, while the 15-year rate decreased by six basis points to 5.67%, indicating slight market fluctuations, although rates remain above a three-year low.
- Refinance Rate Overview: The current 30-year fixed refinance rate stands at 6.42%, with the 20-year at 7.00% and the 15-year at 5.87%, reflecting competitive dynamics in the refinance market that may influence borrower decisions.
- Economic Impact Factors: Mortgage rates are influenced by economic conditions, rising when the economy is strong to temper spending and falling during downturns to stimulate borrowing, making this dynamic crucial for homebuyers and investors.
- Loan Choice Analysis: Both 30-year and 15-year fixed mortgages have their pros and cons, with the former offering lower monthly payments but higher long-term interest, while the latter has lower rates but higher monthly payments, requiring borrowers to make informed decisions based on their financial situations.
See More
Mortgage Rates Ease Lower Amid Market Trends
- Mortgage Rate Decline: According to Zillow, the average 30-year fixed mortgage rate has decreased to 6.36%, down 11 basis points from last week, indicating market sensitivity to rates which may stimulate homebuying demand.
- Refinance Rate Overview: The 30-year refinance rate stands at 6.43%, slightly higher than purchase rates, reflecting competitive pressure in the refinancing market that may lead borrowers to consider more cost-effective options.
- Loan Type Comparison: The 15-year fixed mortgage rate is at 5.81%, which, while resulting in higher monthly payments, can save borrowers significant interest over time, encouraging a preference for shorter-term loans to reduce total interest costs.
- Market Outlook Predictions: According to MBA forecasts, the 30-year mortgage rate is expected to hover around 6.30% through 2026, reflecting a cautiously optimistic market sentiment regarding future rate trends, which could influence homebuyer decisions.
See More
Median-Income Households Gain Home Buying Power in the U.S.
- Increased Buying Power: A recent Zillow study reveals that median-income households in the U.S. can now afford homes priced at $331,483, reflecting a $30,302 increase from last year's $301,181, indicating a significant boost in purchasing power and hinting at greater market stability.
- Signs of Market Stabilization: With median-income households able to make a 20% down payment on a $331,483 home and mortgage rates declining, the market appears to be stabilizing, potentially providing favorable conditions for future real estate investments.
- City-Specific Affordability Trends: In Los Angeles, the affordable home price for median-income households is projected to reach $421,030 in 2026, up 10.9% from $379,754 in 2025, indicating a continued upward trend in housing prices in the region.
- National Trends in Affordability: Across 30 major cities, many show improved affordability for median-income households, such as San Francisco, where the affordable price increased from $525,449 to $581,564, a rise of 10.7%, suggesting a nationwide enhancement in buying capacity.
See More
Mortgage Rates Hit Highest Level Since September
- Mortgage Rate Surge: Zillow reports that the average 30-year fixed mortgage rate has reached 6.47%, the highest since late September, indicating market expectations for rising future rates, which may lead to increased borrowing costs for homebuyers.
- Refinance Rate Trends: The current 30-year refinance rate stands at 6.60%, slightly higher than purchase loan rates, reflecting pressure in the refinance market that may prompt borrowers to make quicker loan decisions to avoid higher rates.
- Short vs. Long Term Loans: The rates for 30-year and 15-year fixed mortgages are 6.47% and 5.90%, respectively; while the 15-year loan offers a lower rate, it comes with higher monthly payments, requiring borrowers to balance short-term and long-term financial goals when selecting the right loan type.
- Market Expectations and Outlook: According to MBA forecasts, the 30-year mortgage rate is expected to remain around 6.10% through the end of 2026, with Fannie Mae predicting rates near 6% for the year, suggesting a cautiously optimistic outlook on future rate stability in the market.
See More
Mortgage Rates Surge to Nearly Six-Month High
- Rising Rate Trend: According to Zillow, the current 30-year fixed mortgage rate is 6.47%, up 10 basis points from last Friday, marking the highest level since late September, which may dampen homebuying demand and affect the recovery of the housing market.
- Short-Term Rate Changes: The 15-year fixed mortgage rate has also increased to 5.90%, indicating a general rise in borrowing costs that could lead homebuyers to be more cautious in their loan choices, thereby impacting overall market activity.
- Refinancing Rate Fluctuations: The current 30-year refinancing rate stands at 6.60%, higher than purchase loan rates, reflecting intensified competition in the refinancing market, which may lead borrowers to face increased costs and influence their refinancing decisions.
- Market Outlook: Despite rising rates, Zillow forecasts that the 30-year mortgage rate will remain around 6.10% over the next few years, suggesting that homebuyers may still face a high-rate environment in the future, affecting their timing decisions for purchasing homes.
See More
First-Time Homebuyers Find Opportunities in Sun Belt and Midwest
- Market Analysis: Zillow's latest analysis identifies Jacksonville, Birmingham, and San Antonio as top markets for first-time buyers in 2026, where improved affordability and increased inventory are expected to significantly reduce competition, thus providing better purchasing opportunities.
- Reduced Rent Burden: In Jacksonville, typical rent consumes 23.1% of household income, while Birmingham and San Antonio are at 21.1% and 20.2%, respectively; these lower rent burdens facilitate savings for down payments, enhancing the willingness to buy among first-time buyers.
- Inventory Recovery: The rapid recovery of inventory in southern markets has brought housing supply closer to pre-pandemic levels, although overall inventory remains 20% below pre-pandemic norms, the relative improvement offers first-time buyers more choices.
- Economic Environment Changes: Despite rising mortgage rates impacting affordability, the overall improvement in economic conditions and rising incomes have made the home-buying outlook for first-time buyers better than last year, indicating a gradual market recovery.
See More
Slight Changes in Mortgage Rates Today
- Mortgage Rate Changes: According to Zillow, the 30-year fixed mortgage rate increased by one basis point to 6.30%, while the 15-year rate decreased by six basis points to 5.67%, indicating slight market fluctuations, although rates remain above a three-year low.
- Refinance Rate Overview: The current 30-year fixed refinance rate stands at 6.42%, with the 20-year at 7.00% and the 15-year at 5.87%, reflecting competitive dynamics in the refinance market that may influence borrower decisions.
- Economic Impact Factors: Mortgage rates are influenced by economic conditions, rising when the economy is strong to temper spending and falling during downturns to stimulate borrowing, making this dynamic crucial for homebuyers and investors.
- Loan Choice Analysis: Both 30-year and 15-year fixed mortgages have their pros and cons, with the former offering lower monthly payments but higher long-term interest, while the latter has lower rates but higher monthly payments, requiring borrowers to make informed decisions based on their financial situations.
See More
Mortgage Rates Ease Lower Amid Market Trends
- Mortgage Rate Decline: According to Zillow, the average 30-year fixed mortgage rate has decreased to 6.36%, down 11 basis points from last week, indicating market sensitivity to rates which may stimulate homebuying demand.
- Refinance Rate Overview: The 30-year refinance rate stands at 6.43%, slightly higher than purchase rates, reflecting competitive pressure in the refinancing market that may lead borrowers to consider more cost-effective options.
- Loan Type Comparison: The 15-year fixed mortgage rate is at 5.81%, which, while resulting in higher monthly payments, can save borrowers significant interest over time, encouraging a preference for shorter-term loans to reduce total interest costs.
- Market Outlook Predictions: According to MBA forecasts, the 30-year mortgage rate is expected to hover around 6.30% through 2026, reflecting a cautiously optimistic market sentiment regarding future rate trends, which could influence homebuyer decisions.
See More
Median-Income Households Gain Home Buying Power in the U.S.
- Increased Buying Power: A recent Zillow study reveals that median-income households in the U.S. can now afford homes priced at $331,483, reflecting a $30,302 increase from last year's $301,181, indicating a significant boost in purchasing power and hinting at greater market stability.
- Signs of Market Stabilization: With median-income households able to make a 20% down payment on a $331,483 home and mortgage rates declining, the market appears to be stabilizing, potentially providing favorable conditions for future real estate investments.
- City-Specific Affordability Trends: In Los Angeles, the affordable home price for median-income households is projected to reach $421,030 in 2026, up 10.9% from $379,754 in 2025, indicating a continued upward trend in housing prices in the region.
- National Trends in Affordability: Across 30 major cities, many show improved affordability for median-income households, such as San Francisco, where the affordable price increased from $525,449 to $581,564, a rise of 10.7%, suggesting a nationwide enhancement in buying capacity.
See More
Mortgage Rates Hit Highest Level Since September
- Mortgage Rate Surge: Zillow reports that the average 30-year fixed mortgage rate has reached 6.47%, the highest since late September, indicating market expectations for rising future rates, which may lead to increased borrowing costs for homebuyers.
- Refinance Rate Trends: The current 30-year refinance rate stands at 6.60%, slightly higher than purchase loan rates, reflecting pressure in the refinance market that may prompt borrowers to make quicker loan decisions to avoid higher rates.
- Short vs. Long Term Loans: The rates for 30-year and 15-year fixed mortgages are 6.47% and 5.90%, respectively; while the 15-year loan offers a lower rate, it comes with higher monthly payments, requiring borrowers to balance short-term and long-term financial goals when selecting the right loan type.
- Market Expectations and Outlook: According to MBA forecasts, the 30-year mortgage rate is expected to remain around 6.10% through the end of 2026, with Fannie Mae predicting rates near 6% for the year, suggesting a cautiously optimistic outlook on future rate stability in the market.
See More
Mortgage Rates Surge to Nearly Six-Month High
- Rising Rate Trend: According to Zillow, the current 30-year fixed mortgage rate is 6.47%, up 10 basis points from last Friday, marking the highest level since late September, which may dampen homebuying demand and affect the recovery of the housing market.
- Short-Term Rate Changes: The 15-year fixed mortgage rate has also increased to 5.90%, indicating a general rise in borrowing costs that could lead homebuyers to be more cautious in their loan choices, thereby impacting overall market activity.
- Refinancing Rate Fluctuations: The current 30-year refinancing rate stands at 6.60%, higher than purchase loan rates, reflecting intensified competition in the refinancing market, which may lead borrowers to face increased costs and influence their refinancing decisions.
- Market Outlook: Despite rising rates, Zillow forecasts that the 30-year mortgage rate will remain around 6.10% over the next few years, suggesting that homebuyers may still face a high-rate environment in the future, affecting their timing decisions for purchasing homes.
See More
