Zillow's January Market Report shows improving affordability for home buyers

Rhea-AI Summary

Zillow (NYSE:Z) reports U.S. home values fell for the sixth consecutive month in January, with the Zillow Home Value Index down 0.4% month-over-month and 0.2% year-over-year. The typical U.S. home value is $358,968 and the typical mortgage payment is $1,733, 8.4% lower than a year ago. Active inventory rose to 1.11 million homes, up 6% year-over-year. New listings and the early sales read were lower year-over-year, while homes are taking longer to go pending and fewer sell above list price.

Positive

• Typical monthly mortgage payment down 8.4% YoY
• Active inventory at 1.11 million homes, +6% YoY
• Typical home value of $358,968 provides a clear pricing benchmark

Negative

• ZHVI down 0.4% MoM and six consecutive monthly declines
• Preliminary sales nowcast -4% YoY and -26.4% vs December
• New for-sale listings -5.5% YoY may signal weaker supply flow into spring

Key Figures

Typical U.S. home value: $358,968 ZHVI MoM change: -0.4 % ZHVI YoY change: 0.2 % +5 more

8 metrics

Typical U.S. home value $358,968 Zillow Home Value Index, January

ZHVI MoM change -0.4 % U.S. home values, January vs prior month

ZHVI YoY change 0.2 % U.S. home values, January vs year earlier

Typical mortgage payment $1,733 Assumes 20% down, excludes taxes & insurance

Mortgage cost change -8.4 % Monthly payment vs year earlier

Homes for sale 1.11 million Active inventory nationwide, January

Typical U.S. rent $1,895 Zillow Observed Rent Index, nationwide

Rent YoY change 2.0 % Nationwide typical rent vs year earlier

Market Reality Check

Price: $58.94 Vol: Price at $58.94 is down 5...

high vol

$58.94 Last Close

Volume Price at $58.94 is down 5.73% with volume 4,890,086 vs 20-day average 2,930,534 (relative volume 1.67). high

Technical Shares trade below the 200-day MA of $73.65, about 37.22% under the 52-week high of $93.88 and only 2.49% above the 52-week low of $57.51.

Peers on Argus

Alongside Z’s -5.73% move, key internet peers show broad weakness: ZG -4.51%, PI...

Alongside Z’s -5.73% move, key internet peers show broad weakness: ZG -4.51%, PINS -4.77%, BIDU -0.9%, and TME -0.3%, while NBIS is roughly flat at 0.02%. The decline aligns with a sector-wide downdraft rather than a purely company-specific move.

Historical Context

5 past events · Latest: Jan 29 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 29	Brand campaign launch	Positive	+0.3%	National "Someday Starts Today" marketing campaign across TV and digital.
Jan 26	Housing market analysis	Positive	+2.3%	List of most buyer‑friendly markets based on affordability and competition.
Jan 20	Earnings date notice	Neutral	-1.5%	Announcement of Q4 and full‑year 2025 results release date and call.
Jan 15	Affordability outlook	Positive	+0.5%	Forecast that mortgages become affordable in 20 major metros by Dec 2026.
Jan 08	Market ranking report	Positive	+2.6%	Hartford named hottest 2026 market using Zillow’s market heat metrics.

Pattern Detected

Recent Zillow macro-housing and brand/news updates have typically produced modest single-day stock reactions, with no strong pattern of outsized moves on these announcements.

Recent Company History

Over the past month, Zillow’s news flow has focused on housing-market analytics, brand building, and upcoming earnings. Recent releases highlighted buyer‑friendly markets, projected affordability improvements, and market rankings such as Hartford and Indianapolis, while a national brand campaign "Someday Starts Today" targeted consumer engagement. An 8-K and 10-Q in late October reported Q3 2025 revenue growth and a return to profitability. Against this backdrop, the latest January Market Report extends Zillow’s role as a macro housing data provider rather than introducing company-specific financial updates.

Market Pulse Summary

This announcement details Zillow’s January Market Report, emphasizing improved affordability as mort...

Analysis

This announcement details Zillow’s January Market Report, emphasizing improved affordability as mortgage payments on a typical home fall 8.4% year over year to $1,733, while typical U.S. home values sit at $358,968 after six months of modest declines. Inventory reached 1.11 million homes for sale, and typical rent is $1,895, up 2.0% from a year earlier. Investors may watch future reports for trends in sales counts, days to pending, and rent growth to gauge housing demand and pricing power.

Key Terms

zillow home value index, zillow observed rent index, nowcast

3 terms

zillow home value index technical

"U.S. home values fell on a monthly basis...according to the Zillow Home Value Index."

Zillow Home Value Index is Zillow’s smoothed, algorithm-based estimate of the typical single-family home value for a neighborhood, city, or metro area that blends recent sales and listing data while reducing short-term swings. Investors use it as a quick indicator of housing market trends—like a rolling average price tag—because shifts can signal changing demand, mortgage and credit risk, local consumer wealth, and potential impacts on real estate returns.

zillow observed rent index technical

"modest growth in the Zillow Observed Rent Index points to continued cooling..."

A Zillow Observed Rent Index (ZORI) is a regular measure of typical rents derived from rental listings and transactions tracked by Zillow, showing whether rents are rising or falling in a city, county, or neighborhood. Think of it as a thermometer for the rental market: investors use it to gauge housing demand, forecast revenue for landlords and real estate funds, assess consumer spending power, and spot inflation trends that can affect stocks and bonds.

nowcast technical

"homes were sold in January, according to the preliminary Zillow sales count nowcast."

A nowcast is a short-term, real-time estimate of the current state of an economy or market built from partial, quickly updated data—like a snapshot that fills in missing pieces before official reports arrive. Investors use nowcasts as an early read on trends such as growth, inflation, or employment because they can signal changes in asset prices sooner than waiting for delayed, formal statistics, much like checking live traffic before choosing a route.

AI-generated analysis. Not financial advice.

U.S. home values have fallen for six consecutive months, according to the Zillow Home Value Index

SEATTLE, Feb. 4, 2026 /PRNewswire/ -- U.S. home values fell on a monthly basis for the sixth consecutive month in January, according to the Zillow® Home Value Index. This trend mirrors last year, when home values fell each month from August 2024 to February 2025. The monthly mortgage payment on a typical U.S. home is now 8.4% less expensive than a year ago, driven down primarily by lower mortgage rates.

New listings and the early read on sales both fell in January compared to last year, likely influenced by poor weather in much of the country. Buyers are having an easier time than last year, with homes on the market longer and fewer homes selling above list price.

"We're starting 2026 following three years that saw transactions bouncing along the bottom and affordability as a chronic struggle," said Mischa Fisher, chief economist at Zillow. "Our forecast for both sales and affordability this year is one of gradual improvement. January was a cautious first step along that path, as potential buyers and sellers dealt with severe winter weather in many major markets. We expect sales to pick up as spring approaches. Housing affordability continues to improve for prospective homebuyers, while modest growth in the Zillow Observed Rent Index points to continued cooling in shelter inflation."

Home Values & Mortgage Payments

• The typical U.S. home value is $358,968.
• The Zillow Home Value Index (ZHVI) fell 0.4% month over month in January. Home values are 0.2% higher than a year earlier.
• The monthly mortgage payment on a typical U.S. home is $1,733, assuming a 20% down payment and excluding taxes and insurance. That is 8.4% lower than last year.

Inventory

• There were 1.11 million homes for sale nationwide in January.
• Active inventory was 6% higher than a year earlier. Inventory fell 0.1% from December.
• New for-sale listings totaled 269,922 in January, down 5.5% from a year earlier, and up 54.8% from December.

Sales

• 219,644 homes were sold in January, according to the preliminary Zillow sales count nowcast. That is 4% lower than a year earlier, and down 26.4% from December. These figures will be revised mid month.
• Newly pending listings, which measures listings that changed from for-sale to pending status rather than closed sales, show 1.8% year-over-year growth and a 20.8% increase over December.

Competition

• Homes took a median of 47 days to go pending in January. That was eight days longer than a year earlier and four days longer than December.
• The share of listings with a price cut in January was 22%. That was down 0.7 percentage points from a year earlier, and up 5.2 percentage points from December.
• 22.4% of homes sold above list price in December, the most recent data available. That was 2.3 percentage points lower than a year earlier, and 1.6 percentage points lower than November.

Rents

• The typical rent nationwide is $1,895, according to the Zillow Observed Rent Index. That's 2% higher than a year earlier, and up 0.1% from December.
• 38.8% of rental listings on Zillow offered a concession in January. That's 2.3 percentage points lower than a year earlier, and down 0.6 percentage points from December.

Local data can be found on Zillow's market explorer. The Zillow February Market Report is expected to be released March 4.

Metro Area*	Typical Home Value (ZHVI)	Home Value Change: MoM	Home Value Change: YoY	Inventory Change: YoY	Sales Count Nowcast Change: YoY	Typical Rent (ZORI)	Rent Change: MoM	Rent Change: YoY
United States	$358,968	-0.4 %	0.2 %	6.0 %	-4.0 %	$1,895	0.1 %	2.0 %
New York, NY	$707,558	0.2 %	3.9 %	1.5 %	-12.4 %	$3,232	-0.1 %	4.3 %
Los Angeles, CA	$946,065	0.1 %	-0.5 %	6.5 %	0.2 %	$2,885	0.1 %	1.6 %
Chicago, IL	$336,389	-0.2 %	4.0 %	-5.0 %	-14.0 %	$2,091	0.5 %	5.4 %
Dallas, TX	$357,536	-0.6 %	-3.9 %	6.1 %	1.3 %	$1,633	-0.1 %	0.3 %
Houston, TX	$302,356	-0.5 %	-2.2 %	16.4 %	-6.8 %	$1,612	-0.1 %	0.0 %
Washington, DC	$568,102	-0.2 %	-0.4 %	21.8 %	-8.0 %	$2,333	0.1 %	0.4 %
Philadelphia, PA	$375,978	-0.2 %	2.6 %	2.4 %	-13.7 %	$1,849	0.1 %	2.9 %
Miami, FL	$467,850	-0.2 %	-4.3 %	-2.3 %	-5.3 %	$2,645	0.0 %	0.5 %
Atlanta, GA	$373,781	-0.5 %	-2.7 %	6.4 %	-18.3 %	$1,812	0.1 %	2.1 %
Boston, MA	$712,622	-0.4 %	1.7 %	8.0 %	-1.4 %	$3,049	0.5 %	1.8 %
Phoenix, AZ	$443,565	-0.2 %	-2.3 %	6.4 %	0.6 %	$1,718	0.1 %	-0.6 %
San Francisco, CA	$1,092,908	-0.2 %	-2.1 %	-6.3 %	0.0 %	$3,064	0.4 %	5.8 %
Riverside, CA	$577,131	-0.1 %	-1.7 %	1.7 %	-3.4 %	$2,464	0.2 %	1.8 %
Detroit, MI	$255,825	-0.6 %	2.8 %	10.4 %	-17.0 %	$1,455	0.2 %	2.8 %
Seattle, WA	$732,016	-0.2 %	-1.5 %	19.9 %	-1.3 %	$2,183	-0.1 %	2.2 %
Minneapolis, MN	$376,354	-0.4 %	1.6 %	5.1 %	-12.3 %	$1,665	0.1 %	4.2 %
San Diego, CA	$905,983	-0.2 %	-2.0 %	5.7 %	-9.2 %	$2,871	0.1 %	1.3 %
Tampa, FL	$352,904	-0.4 %	-4.8 %	5.2 %	-6.1 %	$1,986	-0.1 %	-1.2 %
Denver, CO	$558,305	-0.4 %	-3.2 %	7.0 %	-8.2 %	$1,838	-0.1 %	-1.1 %
Baltimore, MD	$391,799	-0.4 %	0.6 %	19.0 %	-8.4 %	$1,855	0.4 %	2.6 %
St. Louis, MO	$263,241	-0.3 %	2.5 %	7.9 %	-0.1 %	$1,409	0.3 %	3.6 %
Orlando, FL	$381,041	-0.4 %	-4.0 %	3.0 %	1.6 %	$1,917	0.2 %	0.5 %
Charlotte, NC	$381,064	-0.4 %	-0.8 %	12.1 %	-12.6 %	$1,704	0.0 %	0.7 %
San Antonio, TX	$274,114	-0.5 %	-2.6 %	10.9 %	-4.8 %	$1,380	0.0 %	-1.2 %
Portland, OR	$537,199	-0.3 %	-1.1 %	10.2 %	-7.5 %	$1,778	-0.2 %	0.9 %
Sacramento, CA	$566,491	-0.4 %	-2.1 %	0.2 %	-6.4 %	$2,197	-0.2 %	1.9 %
Pittsburgh, PA	$218,792	-0.7 %	1.2 %	3.7 %	-8.2 %	$1,449	0.4 %	4.1 %
Cincinnati, OH	$297,473	-0.4 %	2.4 %	11.9 %	-5.9 %	$1,522	0.4 %	2.7 %
Austin, TX	$418,101	-0.7 %	-5.9 %	3.7 %	-8.5 %	$1,561	0.0 %	-2.6 %
Las Vegas, NV	$425,751	-0.4 %	-2.7 %	13.2 %	-8.2 %	$1,716	0.0 %	0.1 %
Kansas City, MO	$313,709	-0.2 %	2.8 %	10.9 %	10.8 %	$1,455	0.2 %	3.8 %
Columbus, OH	$318,819	-0.4 %	0.9 %	9.5 %	-5.7 %	$1,454	-0.3 %	1.6 %
Indianapolis, IN	$284,954	-0.4 %	1.1 %	15.3 %	-10.1 %	$1,508	0.2 %	3.2 %
Cleveland, OH	$237,811	-0.6 %	4.2 %	3.9 %	-13.6 %	$1,390	0.6 %	4.2 %
San Jose, CA	$1,563,569	0.0 %	-1.4 %	12.7 %	-9.7 %	$3,406	0.3 %	5.1 %
Nashville, TN	$445,010	-0.4 %	-0.8 %	11.4 %	-7.3 %	$1,770	-0.1 %	0.4 %
Virginia Beach, VA	$361,608	-0.1 %	1.7 %	5.2 %	10.6 %	$1,795	0.4 %	5.4 %
Providence, RI	$504,547	-0.2 %	2.7 %	4.4 %	-5.5 %	$2,078	0.1 %	4.5 %
Jacksonville, FL	$345,165	-0.3 %	-2.7 %	-5.7 %	-6.1 %	$1,659	-0.1 %	0.2 %
Milwaukee, WI	$365,994	-0.3 %	4.8 %	1.8 %	-3.5 %	$1,458	0.2 %	3.9 %
Oklahoma City, OK	$240,354	-0.2 %	1.0 %	9.1 %	-9.6 %	$1,347	0.1 %	2.7 %
Raleigh, NC	$428,618	-0.5 %	-2.6 %	29.5 %	-11.4 %	$1,655	0.1 %	0.2 %
Memphis, TN	$238,977	-0.5 %	-0.6 %	6.6 %	-11.7 %	$1,415	-0.1 %	1.7 %
Richmond, VA	$382,479	-0.2 %	1.7 %	6.1 %	-1.6 %	$1,639	0.5 %	3.5 %
Louisville, KY	$271,069	-0.1 %	2.1 %	20.1 %	4.9 %	$1,352	0.2 %	2.2 %
New Orleans, LA	$253,919	0.0 %	1.4 %	2.2 %	17.4 %	$1,568	0.3 %	0.4 %
Salt Lake City, UT	$557,054	-0.1 %	1.9 %	12.4 %	6.7 %	$1,581	-1.1 %	-0.3 %
Hartford, CT	$379,314	-0.3 %	4.9 %	-0.2 %	-6.4 %	$1,864	0.0 %	3.1 %
Buffalo, NY	$270,506	-0.9 %	3.9 %	3.7 %	-5.9 %	$1,365	0.6 %	3.4 %
Birmingham, AL	$252,754	-0.4 %	0.6 %	11.8 %	-27.2 %	$1,385	-0.1 %	1.9 %

*Table ordered by market size

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

FAQ

How did Zillow's January 2026 report describe housing affordability for buyers (Z)?

Affordability improved: the typical monthly mortgage payment is now $1,733, 8.4% lower year-over-year. According to Zillow, lower mortgage rates drove the payment decline, while home values fell modestly, easing cost pressure for prospective buyers entering spring.

What were the key January 2026 Zillow Home Value Index (ZHVI) figures for the U.S. (Z)?

ZHVI fell 0.4% month-over-month and rose 0.2% year-over-year, with a typical U.S. value of $358,968. According to Zillow, this marks a sixth straight monthly drop, reflecting modest price weakness amid improving mortgage affordability.

How did U.S. home sales and inventory change in Zillow's January 2026 report (Z)?

Sales were down: the preliminary nowcast shows 219,644 homes sold, -4% YoY and -26.4% vs December. According to Zillow, active inventory totaled 1.11 million homes, up 6% year-over-year, giving buyers more options.

What local market trends did Zillow highlight in January 2026 that could affect buyers (Z)?

Many metros showed month-over-month value declines and longer selling times; median days to pending was 47 days. According to Zillow, severe winter weather weighed on new listings and early sales reads, slowing market activity into January.