Zillow Forecast: Best and Worst Housing Markets of 2026
Summary
This BiggerPockets article discusses Zillow's 2026 housing market forecast, highlighting slowing growth in most US markets. Hosts should pay attention to regional variances, as affordability in an area directly impacts home values and consequently, rental income potential.
Key Insights
- •Austin, TX, has a significant imbalance with a high number of sellers compared to buyers, potentially leading to price drops. (17,403 sellers to 7,568 buyers)
- •The national housing market is slowing down, with growth rates decreasing even in previously hot markets like Milwaukee (3.2% growth), Detroit (3.7%), and Hartford, CT (4.2%).
- •Hottest markets identified by realtor.com are in relatively affordable areas like Springfield, MA, Hartford, CT, and several cities in Wisconsin.
- •Florida is experiencing significant weakness in the housing market, with areas like Punta Gorda (-13% year-over-year) and Cape Coral (-10% year-over-year) seeing substantial declines.
Action Items
- ✓Consider the impact of regional variations and affordability when evaluating investment potential in the STR market.Effort: lowImpact: medium
Tools & Resources
- →Zillow: Zillow data is used to analyze market trends.(zillow.com)
- →Realtor.com: Realtor.com provides real-time market data on hottest markets.(realtor.com)
Common Mistakes
- ⚠Failing to consider regional differences in housing market performance and rental demand may lead to decreased profitability in a chosen market.
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