Zillow Reveals Rental & For-Sale Trends for Consumers
The rental market is gaining momentum as we approach the end of 2026, while the for-sale market appears to be losing traction. Zillow has reported a 13% increase in its rent growth forecast from the previous month, indicating that the rental market is strengthening.
The projection for single-family rents is a rise of 2.1% in 2026, leading to an average monthly rent of $2,300, while multifamily rents are anticipated to increase by 1.8%. Certain key markets have shown improvement, particularly San Francisco, which has experienced significant acceleration. Although cities like Austin, Denver, Dallas, and Raleigh have not yet reached this point—still witnessing declining rents—they are trending towards year-over-year growth. This rental market strength is partly supported by ongoing weaknesses in the for-sale market, as affordability issues keep potential buyers from entering the market and prolong their stay in rentals.
In terms of sales volume, we began 2026 with cautious optimism: not a complete return to normalcy, but a movement in that direction. The general expectation was for modest sales growth, gradually improving inventory, and stable home values following years of rapid appreciation.
| Annual forecasts as of December 2026 | |
| Typical home value growth (ZHVI) | +0.3% annually |
| Existing home sales (Zillow sales count nowcast) | 3.78M (+1.5% YoY) |
| Existing home sales (NAR) | 4.1M (+1.5% YoY) |
| Typical single-family rent growth (ZORI) | $2.3K (+2.1.% YoY) |
| Typical multifamily rent growth (ZORI) | $1.8K (+1.8% YoY) |
However, this outlook has changed throughout the year. Mortgage rates have returned to a high level, offering little assistance for a demand-driven sales recovery. The housing market continues to manage a high level of inventory, which is suppressing price growth. Home values are expected to increase by only 0.3% for the year. Inventory is rising at a pace that outstrips sales, which dampens price growth and provides buyers in most markets with more negotiating power than in previous years.
According to Zillow’s sales count nowcast, existing home sales are projected to reach 3.78 million in 2026, reflecting a 1.5% increase year over year. However, this annual figure conceals a skewed narrative: a robust first half is anticipated to be counterbalanced by a decline in the fourth quarter, with sales growth expected to turn negative in Q4, decreasing by 3.2% according to Zillow’s count. Overall, sales volume remains significantly below pre-pandemic levels.
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