While the only thing certain about the future is that it is uncertain and cannot be guaranteed, in a recent article Zillow took on a challenge to make intelligent, data-driven, market predictions for 2026. The authors based their views on Zillow’s economists’ finding and analysis. Even though, the future is unknown, good, fact-based, analysis can result in likely scenarios worth consideration. No need to explain that probabilities are useful provided that making decisions based on them, one understands the concept of probabilities. Don’t we humans make most of our decisions based on probabilities? How about getting married, choosing a car to buy, or picking a restaurant at a town we are visiting for the first time?
Let’s get back to Zillow’s market predictions for 2026. Overall prices are expected to grow by 1.2% versus 2025; however, there are regional differences when it comes to real estate, and some local markets are expected to decline during the year.
Existing home sales are expected to grow by 4.3%, which seems to be in line with the anticipated price growth. Zillow also postulates that renting demand will be strong or even stronger than in 2025 as a result of lifestyle changes, claiming that mobility is becoming increasingly important, and maintenance burdens are undesirable to a growing number of people. This may be an important insight for investors, who consider becoming landlords or expanding their rental unit portfolios.
It is also anticipated that 2026 will continue to be weak for new construction projects. As a broker, I put a lot of effort into getting the best price for my clients I can. This weakness – if it materializes – may offer an excellent opportunity to secure additional price discounts, reduced interest rates, builders’ closing costs contributions, and other incentives that can be negotiated when buying new construction.