Zillow's May Market Report: The housing recovery is back on pause
Rhea-AI Summary
Zillow (NASDAQ:Z) reports that in May, rising mortgage rates above 6.5% coincided with softer housing activity. New listings fell 0.8% month over month and 4.1% year over year, while sales rose 4.8% from April but were 2.9% below last year.
The typical U.S. home value reached $368,720, up 0.6% month over month and 0.8% year over year. A typical mortgage payment is $1,861, 3.1% lower than a year earlier. Active inventory was 1.36 million homes, 1% higher year over year, extending 30 months of annual gains. Typical rent is $1,951, up 2% year over year, with concessions on 39.6% of listings.
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Negative
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News Market Reaction – Z
In the Jun 4 session, Z gained 1.15%, reflecting a mild positive market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 27 | Rental concessions report | Neutral | +0.9% | Record spring for rental concessions and leverage shift toward renters. |
| May 21 | Housing rebound study | Neutral | +0.8% | Analysis of sales rebound in metros where inventory has recovered. |
| May 18 | Hottest rental markets | Neutral | -1.3% | Ranking of Providence, New York and San Francisco as top rental markets. |
| May 15 | Seller preferences survey | Neutral | +0.8% | Survey on sellers favoring broad online exposure and Zillow Preview collaboration. |
| May 14 | Dual agency cost study | Neutral | -3.0% | Research quantifying seller costs from same‑agent dual agency and off‑MLS deals. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent Zillow macro-housing and rental research pieces have generally seen modest, mixed price reactions, with no consistent pattern of strong moves on these data releases.
Over the past month, Zillow has released several research-driven updates on U.S. housing and rental dynamics. These include work on rental concessions (39.8% of listings with deals), market rebounds where inventory recovered, identification of Providence as a leading rental market, and surveys on seller preferences and dual-agency costs, including an estimated $1.49 billion seller impact. Price reactions to these reports have been modest and mixed, suggesting investors treat them as incremental macro context rather than major company-specific catalysts.
AI-generated analysis. How Rhea-AI works. Not financial advice.
New listings and sales fall behind 2025 as mortgage rates rise past
New listings have historically peaked in May or June but sellers pulled back this May; new listings ticked down
Sales trended up from April, rising
Meanwhile, inventory growth continued to rise on an annual basis, extending an unbroken streak of annual growth to 30 straight months. However, the pace slowed and is trending toward negative, inching up
Typical home values rose slightly (
"May housing results were disappointing for those hanging on to hope of a stronger year for sales," said Mischa Fisher, chief economist at Zillow. "Inventory is rising, but weekly data suggests it could flatline in the next four weeks. A June peak for options home shoppers have to choose from would be early on the calendar, possibly foreshadowing slower sales in the second half of the year."
Home Values & Mortgage Payments
- The typical
U.S . home value is$368,720 - The Zillow Home Value Index (ZHVI) rose
0.6% month over month in May. - Home values are
0.8% higher than a year earlier. - The monthly mortgage payment on a typical
U.S . home is$1,861 20% down payment and excluding taxes and insurance. That is3.1% lower than last year.
Inventory
- There were 1.36 million homes for sale nationwide in May.
- Active inventory was
1% higher than a year earlier. Inventory rose4.6% from April. - New for-sale listings totaled 422,956 in May, down
4.1% from a year earlier and down0.8% from April.
Sales
- 341,929 homes were sold in May, according to the preliminary Zillow sales count nowcast. That is
2.9% lower than a year earlier and up4.8% from April.
Competition
- Homes took a median of 18 days to go pending in May. That was one day longer than a year earlier and one day longer than April. The share of listings with a price cut in May was
23.9% . That's compared to25.7% a year earlier and23.5% in April. 28.4% of homes sold above list price in April, the most recent data available. That's compared to30.1% a year earlier and25.4% in March.
Rents
- The typical rent nationwide is
$1,951 2% higher than a year earlier and up0.5% from April. 39.6% of rental listings on Zillow offered a concession in May. That's compared to35.1% a year earlier and39.8% in April.
Local data can be found on Zillow's market explorer. The Zillow June Market Report is expected to be released July 7.
Zillow May Market Report | ||||||||
Metro Area* | Typical | Home | Home | Inventory | Sales | Typical | Rent | Rent |
0.6 % | 0.8 % | 1.0 % | -2.9 % | 0.5 % | 2.0 % | |||
0.7 % | 4.0 % | 1.2 % | -16.7 % | 1.1 % | 4.5 % | |||
0.3 % | 0.3 % | -0.4 % | -5.4 % | 0.3 % | 1.4 % | |||
1.1 % | 4.4 % | -0.8 % | 1.9 % | 0.9 % | 5.4 % | |||
0.3 % | -3.0 % | -5.8 % | 3.2 % | 0.3 % | -0.1 % | |||
0.2 % | -2.2 % | 4.1 % | -7.3 % | 0.4 % | -0.6 % | |||
0.4 % | -0.4 % | 4.7 % | 2.4 % | 0.4 % | 0.0 % | |||
0.9 % | 2.4 % | 6.8 % | -8.6 % | 0.3 % | 3.5 % | |||
0.3 % | -2.1 % | -14.2 % | 2.1 % | 0.2 % | 1.1 % | |||
0.4 % | -2.0 % | 0.2 % | -2.4 % | 0.6 % | 1.5 % | |||
1.0 % | 1.7 % | 10.6 % | -8.4 % | 0.9 % | 2.5 % | |||
0.0 % | -1.6 % | -2.4 % | -1.0 % | 0.3 % | -0.3 % | |||
0.8 % | 0.2 % | -14.7 % | -0.6 % | 1.3 % | 7.1 % | |||
0.1 % | -0.9 % | -7.6 % | -9.4 % | 0.3 % | 2.2 % | |||
1.0 % | 2.5 % | 10.5 % | -14.8 % | 0.9 % | 2.9 % | |||
0.2 % | -1.9 % | 14.9 % | -7.7 % | 0.6 % | 1.4 % | |||
0.9 % | 2.0 % | 18.2 % | -2.7 % | 0.5 % | 3.6 % | |||
0.3 % | -0.5 % | -2.6 % | -0.5 % | 0.4 % | 1.6 % | |||
0.3 % | -2.8 % | -10.0 % | -0.4 % | 0.2 % | -1.0 % | |||
0.3 % | -2.7 % | -7.2 % | -0.9 % | 0.6 % | -1.5 % | |||
0.7 % | 0.7 % | 8.0 % | -2.7 % | 0.3 % | 2.0 % | |||
1.1 % | 3.0 % | 5.8 % | -11.3 % | 0.6 % | 3.8 % | |||
0.2 % | -2.7 % | -4.2 % | -3.8 % | 0.4 % | 0.4 % | |||
0.4 % | -0.4 % | 10.5 % | -5.7 % | 0.4 % | 0.5 % | |||
0.2 % | -1.9 % | 1.7 % | -0.2 % | 0.0 % | -1.8 % | |||
0.4 % | -0.9 % | 1.8 % | -3.9 % | 0.4 % | 0.6 % | |||
0.4 % | -1.2 % | -2.2 % | 1.9 % | 0.5 % | 1.9 % | |||
1.1 % | 0.4 % | 12.9 % | -9.7 % | 0.7 % | 4.0 % | |||
0.9 % | 2.3 % | 16.5 % | 1.8 % | 0.3 % | 3.2 % | |||
0.2 % | -5.7 % | -7.3 % | 10.7 % | 0.4 % | -2.2 % | |||
-0.1 % | -3.2 % | 1.3 % | -10.1 % | 0.3 % | 0.1 % | |||
1.0 % | 3.6 % | -1.8 % | 0.6 % | 0.8 % | 3.5 % | |||
0.9 % | 1.1 % | 9.1 % | 7.9 % | 0.5 % | 1.5 % | |||
0.6 % | 1.1 % | 12.7 % | 5.2 % | 0.6 % | 2.4 % | |||
1.3 % | 4.0 % | 13.3 % | -6.6 % | 0.4 % | 3.9 % | |||
0.0 % | -1.4 % | -0.6 % | 2.3 % | 1.2 % | 5.5 % | |||
0.3 % | -0.9 % | 10.5 % | 1.7 % | 0.6 % | 0.1 % | |||
0.6 % | 2.5 % | 3.7 % | -5.1 % | 0.7 % | 5.8 % | |||
1.0 % | 3.2 % | 4.6 % | -17.0 % | 0.2 % | 3.7 % | |||
0.4 % | -1.3 % | -15.3 % | 3.0 % | 0.4 % | 0.9 % | |||
1.4 % | 5.1 % | 9.8 % | 3.5 % | 0.3 % | 3.9 % | |||
0.5 % | 0.8 % | 4.6 % | 0.2 % | 0.3 % | 2.8 % | |||
0.3 % | -2.1 % | 14.1 % | 1.7 % | 0.2 % | 0.0 % | |||
0.4 % | 0.0 % | 16.0 % | 7.0 % | 0.8 % | 0.9 % | |||
0.9 % | 2.4 % | 5.3 % | 4.2 % | 0.6 % | 3.3 % | |||
0.6 % | 1.4 % | 21.3 % | 7.5 % | 0.7 % | 2.6 % | |||
0.4 % | 3.0 % | -2.6 % | 2.2 % | 0.5 % | 0.4 % | |||
0.4 % | 1.3 % | -1.4 % | 10.8 % | 0.8 % | 0.4 % | |||
1.4 % | 5.1 % | 5.0 % | -13.7 % | 0.9 % | 3.0 % | |||
1.5 % | 4.6 % | 14.2 % | -5.3 % | 0.4 % | 3.3 % | |||
0.7 % | 2.0 % | 3.3 % | -6.9 % | -0.1 % | 1.2 % | |||
*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