Zillow's August Market Report shows elevated rates dampen home sales
Zillow’s August data shows weakening home sales, modest inventory gains and rent growth absorbing demand priced out by higher mortgage rates.
Rhea-AI Summary
Zillow (Z) reports that August 2026 U.S. home sales fell 0.6% year over year and 10.7% from July amid mortgage rates above 6.5%.
Newly pending listings, a leading demand indicator, declined 2.6% annually, and Zillow expects continued softness in the for-sale market as affordability pressures push demand toward rentals. The typical U.S. home value was $369,678, up 1.3% year over year but down 0.1% month over month, while the estimated monthly mortgage payment on a typical home reached $1,897, 2% higher than a year earlier.
Inventory rose to 1.41 million homes, 3% above last year and 0.2% above July, yet new listings slipped 7.9% from July to 356,934. Rents climbed 2.5% year over year to $1,948, with concessions offered on 39.2% of rental listings, suggesting the rental market is absorbing demand sidelined from buying.
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Key Figures
- Home sales change
- -0.6% YoY
- August
- Newly pending listings
- -2.6% YoY
- August
- Mortgage rates
- Above 6.5%
- Highest level in a year
- Typical home value
- $369,678
- United States, August
- Home value growth
- 1.3% YoY
- United States, August
- Monthly mortgage payment
- $1,897; 2% higher YoY
- Typical U.S. home with 20% down payment
- Typical rent
- $1,948; 2.5% higher YoY
- United States, August
- Active inventory
- 1.41 million homes; 3% higher YoY
- United States, August
Historical Context
-
Reported extended saving and break-even timelines for median-income households versus renting.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Zillow expects continued softness in the for-sale market, with newly pending sales and inventory growth both decelerating as affordability challenges push demand toward rentals
- Home sales fell
0.6% year over year in August, a deceleration from July's6% annual gain, according to Zillow's August Market Report. - Newly pending listings, a leading indicator of future closings, fell
2.6% year over year in August, extending a rapid deceleration from June's7.5% annual gain — even as the number of homes for sale continues to climb. - The rental market shows signs of absorbing sidelined demand, with rents rising
2.5% year over year, nearly double the rate of home value growth.
August's closed sales largely reflect contracts signed in July, when elevated rates were already discouraging many would-be buyers. The typical
Inventory continues to offer a modest bright spot, with 1.41 million homes for sale nationwide, up
"The for-sale housing market took a step back in August, and mortgage rates above
Home Values & Mortgage Payments
- The typical
U.S . home value is$369,678 - The Zillow Home Value Index (ZHVI) fell
0.1% month over month in August. Home values are1.3% higher than a year earlier. - The monthly mortgage payment on a typical
U.S . home is$1,897 20% down payment and including estimates for taxes, insurance and maintenance. That is2% higher than last year.
Inventory
- There were 1.41 million homes for sale nationwide in August.
- Active inventory was
3% higher than a year earlier. Inventory rose0.2% from July. - New for-sale listings totaled 356,934 in August, up
2.4% from a year earlier and down7.9% from July.
Sales
- 339,927 homes were sold in August, according to Zillow's sales count nowcast.
- That is
0.6% lower than a year earlier, and down10.7% from July.
Competition
- Homes took a median of 27 days to go pending in August. That's the same as last year and two days longer than July.
- The share of listings with a price cut in August was
26.3% . That was up 0.5 percentage points from a year earlier and down 0.8 percentage points from July. 29.6% of homes sold above list price in July, the most recent data available. That was 0.8 percentage points higher than a year earlier and 1.1 percentage points lower than June.
Rents
- The typical rent nationwide is
$1,948 2.5% higher than a year earlier and up0.2% from July. 39.2% of rental listings on Zillow offered a concession in August. That's 2.5 percentage points higher than a year earlier and down 0.6 percentage points from July.
Local data can be found on Zillow's market explorer. The Zillow September Market Report is expected to be released October 6.
Zillow August Market Report | ||||||||
Metro Area* | Typical | Home | Home | Inventory | Sales | Typical | Rent | Rent |
-0.1 % | 1.3 % | 0.2 % | -0.6 % | 0.2 % | 2.5 % | |||
0.4 % | 5.2 % | -3.5 % | -2.3 % | 0.2 % | 4.2 % | |||
-0.3 % | 1.4 % | 0.5 % | -2.0 % | 0.2 % | 1.6 % | |||
0.3 % | 5.1 % | -0.4 % | 4.9 % | -0.1 % | 4.9 % | |||
-0.3 % | -1.9 % | -1.3 % | -2.1 % | 0.1 % | 0.4 % | |||
-0.3 % | -1.8 % | -1.1 % | -4.0 % | 0.0 % | 0.0 % | |||
-0.5 % | 0.3 % | -2.6 % | -3.5 % | 0.2 % | 0.8 % | |||
-0.1 % | 2.5 % | -0.2 % | -2.7 % | 0.4 % | 3.6 % | |||
0.2 % | 0.5 % | -2.6 % | -1.0 % | 0.2 % | 1.6 % | |||
-0.4 % | -1.5 % | 0.6 % | -0.8 % | 0.3 % | 2.0 % | |||
-0.2 % | 2.3 % | -4.2 % | 0.1 % | -0.7 % | 2.4 % | |||
-0.4 % | -1.0 % | -0.9 % | -1.4 % | 0.1 % | 0.7 % | |||
-0.3 % | 3.3 % | -1.1 % | 2.5 % | 1.7 % | 10.8 % | |||
-0.1 % | 0.4 % | -0.9 % | -0.7 % | 0.3 % | 2.8 % | |||
-0.1 % | 1.8 % | 5.0 % | -1.6 % | 0.4 % | 3.8 % | |||
-0.8 % | -1.6 % | 0.0 % | -6.5 % | 0.2 % | 1.7 % | |||
-0.2 % | 1.7 % | 1.4 % | 4.4 % | 0.1 % | 3.5 % | |||
-0.4 % | 1.0 % | -2.0 % | -6.3 % | 0.3 % | 2.0 % | |||
-0.1 % | -0.6 % | -1.4 % | 2.7 % | 0.1 % | -0.1 % | |||
-0.5 % | -1.5 % | 0.0 % | -1.6 % | -0.1 % | -0.6 % | |||
-0.4 % | 0.4 % | 0.2 % | 3.7 % | 0.3 % | 2.6 % | |||
-0.1 % | 3.3 % | -0.5 % | -5.3 % | 0.2 % | 3.9 % | |||
-0.2 % | -1.4 % | -1.0 % | 5.8 % | 0.0 % | 0.7 % | |||
-0.4 % | -0.7 % | -1.5 % | -2.4 % | 0.2 % | 1.0 % | |||
-0.3 % | -1.8 % | -0.5 % | 5.7 % | 0.2 % | -1.3 % | |||
-0.3 % | 0.1 % | -0.4 % | 1.4 % | 0.3 % | 0.6 % | |||
-0.3 % | 0.2 % | -1.3 % | 3.5 % | 0.3 % | 1.7 % | |||
0.1 % | 0.3 % | -0.3 % | -6.5 % | 0.0 % | 3.4 % | |||
-0.2 % | 2.3 % | -1.8 % | 3.7 % | 0.2 % | 2.6 % | |||
-0.5 % | -4.2 % | -3.2 % | 2.0 % | 0.1 % | 0.0 % | |||
-0.5 % | -2.8 % | 1.8 % | 2.1 % | -0.3 % | 0.1 % | |||
0.0 % | 3.8 % | -0.5 % | 1.7 % | 0.3 % | 3.6 % | |||
-0.1 % | 1.3 % | -0.5 % | 6.3 % | 0.5 % | 2.6 % | |||
-0.1 % | 1.0 % | 2.9 % | -2.7 % | 0.3 % | 3.3 % | |||
0.3 % | 4.0 % | 1.6 % | 1.4 % | 0.3 % | 4.5 % | |||
-1.0 % | 0.3 % | 0.2 % | -5.7 % | 1.0 % | 7.6 % | |||
-0.2 % | -0.3 % | 0.7 % | 1.0 % | 0.2 % | 0.8 % | |||
0.0 % | 2.9 % | 0.6 % | 3.4 % | 1.0 % | 6.6 % | |||
0.1 % | 3.7 % | 2.3 % | -1.5 % | 0.1 % | 4.3 % | |||
-0.1 % | 0.0 % | -2.2 % | -1.0 % | 0.2 % | 1.8 % | |||
0.1 % | 5.5 % | -1.4 % | -2.9 % | 0.3 % | 5.0 % | |||
0.0 % | 1.1 % | 2.4 % | -4.9 % | 0.2 % | 2.3 % | |||
-0.4 % | -1.6 % | -1.4 % | 4.7 % | 0.3 % | 0.8 % | |||
-0.2 % | 0.1 % | -0.5 % | 0.8 % | -0.1 % | 1.0 % | |||
-0.1 % | 2.7 % | 3.5 % | -3.6 % | -0.2 % | 2.5 % | |||
-0.3 % | 1.6 % | 1.7 % | -0.2 % | 0.0 % | 1.6 % | |||
-0.3 % | 1.6 % | -0.8 % | -2.7 % | 0.0 % | 1.4 % | |||
-0.2 % | 1.0 % | 6.2 % | 0.1 % | 0.1 % | 0.5 % | |||
0.2 % | 5.2 % | 1.0 % | 1.2 % | 0.3 % | 3.2 % | |||
0.3 % | 3.7 % | 5.2 % | -3.8 % | 0.5 % | 3.5 % | |||
0.0 % | 2.5 % | 0.4 % | 1.0 % | 0.8 % | 2.0 % | |||
*Table ordered by market size
Forward-looking statements
This press release includes forward-looking statements about future housing market conditions, mortgage rates, rental trends and other economic factors. These statements are based on current expectations and assumptions, which are subject to change. Actual outcomes may differ materially due to changes in economic and market conditions. Forward-looking statements speak only as of the date of this release, and Zillow Group undertakes no obligation to update them.
About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.
As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.
Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.
Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop® and Zillow® Closing.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.
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SOURCE Zillow, Inc.
FAQ
How did Zillow characterize the outlook for the for-sale housing market for the rest of 2026?
Zillow’s chief economist said the combination of weak closed sales and even weaker newly pending sales points to a “soft close to 2026.” The company expects continued softness in the for-sale market while mortgage rates remain above 6.5%, with many households likely to stay on the sidelines and renting viewed as the more affordable substitute.
What key metrics did Zillow report for August 2026 home values, sales, inventory and rents?
The typical U.S. home value was $369,678, up 1.3% year over year and down 0.1% month over month. Zillow’s sales count nowcast showed 339,927 homes sold, 0.6% below a year earlier and 10.7% below July. There were 1.41 million homes for sale, 3% higher than a year ago, and new listings totaled 356,934, up 2.4% year over year but down 7.9% from July. Typical rent was $1,948, 2.5% higher than a year earlier and 0.2% above July.
What signs did Zillow highlight about pricing dynamics and concessions in August?
Homes took a median of 27 days to go pending, matching last year but two days longer than July. The share of for-sale listings with a price cut was 26.3%, up 0.5 percentage points from a year earlier. On the rental side, 39.2% of listings on Zillow offered a concession, 2.5 percentage points more than a year ago, indicating landlords are using incentives even as rents rise.
Where can readers find local-level housing and rent data from this report?
Zillow directs readers to its market explorer for metro-level data on typical home values, inventory changes, sales count nowcasts and rents. The release also includes a table summarizing key indicators such as month-over-month and year-over-year changes for home values and rents across major U.S. metro areas.
When is Zillow’s next monthly housing market report expected to be released?
The next installment, the Zillow September Market Report, is expected to be released on October 6.