Zillow Group Stock Price, News & Analysis

Zillow (NYSE:ZG) released a comprehensive analysis revealing a significant affordability gap in the U.S. housing market. The study shows that median-income households now need a $17,670 annual raise to afford mortgage payments on a typical U.S. home valued at $367,969, even with a substantial $73,594 (20%) down payment.

The analysis highlights severe affordability challenges in California markets, where median earners need six-figure salary increases to afford typical homes, with San Jose requiring the highest raise at over $250,000. Currently, only 11 major markets remain affordable for median-income households, dramatically down from 39 markets five years ago.

The report also reveals that buyers are increasingly relying on multiple sources for down payments, with 72% using savings, 46% using proceeds from previous home sales, and 38% receiving gifts or loans from family or friends. The affordability crisis has led to increased demand for single-family rentals, which have seen a 41% price increase over the past five years, compared to 30% for multifamily units.

Zillow (NYSE:Z) has released new research highlighting common mistakes homeowners make when selling their properties. According to a survey conducted by The Harris Poll, sellers often invest in wrong improvements, with 23% believing additions offer the best ROI when simpler updates like fresh paint prove more effective.

The study identifies five key misconceptions: investing in wrong projects, underestimating online presence (40% still prioritize curb appeal), inadequate agent research, misidentifying valuable features, and misunderstanding disclosure requirements. Notably, homes with natural materials can sell for up to 3.5% more, while Zillow Showcase listings command a 2% premium.

The research also reveals what sellers get right: 70% understand the importance of listing on major real estate portals, and most recognize that private listings typically result in $5,000 lower sale prices.

New Zillow research reveals that specific paint colors can significantly boost home sale prices in 2025. Dark olive green kitchens can increase value by $1,597, while navy blue bedrooms can add $1,815 to the sale price. Charcoal gray living rooms continue to be popular, potentially adding $2,593 to home values. The study, conducted by Zillow's behavioral science team surveying 4,200+ buyers, shows that darker, dramatic shades are preferred over traditional white and light colors. However, certain colors can negatively impact sale prices - daisy yellow kitchens or living rooms could decrease value by approximately $4,000, while fire hydrant red in living rooms or bedrooms could reduce prices by about $2,000.

According to Zillow's latest market report, the housing market showed signs of balancing in May 2025, with newly pending sales rising 3.5% from April and standing 0.9% above last year. Available homes increased to 1.3 million, the highest since July 2020, giving buyers more options. Home values declined in 22 of 50 largest metros, with sellers cutting prices on 26% of listings nationwide. The market is experiencing less competition, with homes taking 17 days to sell. Notably, renting a starter home is now approximately $100 cheaper monthly than a mortgage payment on a typical U.S. home with 10% down, contrasting with six years ago when renting was $373 more expensive than buying. The shift toward a more balanced market is attributed to stable economic conditions, lower mortgage rates than last year, and increased inventory, though affordability remains a significant challenge for buyers.

The luxury housing market showed signs of slowing in April 2025, with the typical luxury home (top 5% most valuable) valued at $1.8 million nationwide. Despite the slowdown, luxury home values increased 2.7% year-over-year, outpacing the broader market's 1.4% growth. New listings fell 5% from March and 3.4% year-over-year, while pending sales dropped 12% month-over-month. California dominates the luxury market, with San Jose ($5.9M), Los Angeles ($5.1M), and San Francisco ($4.8M) leading. The hottest luxury markets include Cincinnati (7.3% growth) and Columbus (6.8%), while Austin (-2.1%), Tampa (-1.7%), and Miami (-0.5%) saw declines. Financial volatility and economic uncertainty have caused both buyers and sellers to proceed cautiously, though limited supply continues to support prices.

According to Zillow's latest analysis, the Spring 2025 housing market shows significant regional variations in buyer competition. Nationwide, there are 5.5 engaged home shoppers per listing, with Northeast markets experiencing the highest competition. Buffalo, Hartford, Providence, and Boston see more than 10 buyers per listing, leading to bidding wars and quick sales.

The Sun Belt region offers more favorable conditions for buyers, with 12 of the 14 least competitive markets located there. Miami has the lowest competition, with only 2.6 shoppers per listing. The market is showing signs of balance with inventory up 20% year-over-year and 25% of sellers cutting prices - a record high for April. Despite continued affordability challenges, buyers have gained more negotiating power compared to recent springs.

Zillow reports that rental-hunting activity is reaching its peak as June 2025 approaches, with website traffic, landlord messages, and applications typically peaking in the first week of June. The platform is experiencing higher activity compared to previous years, with rental households hitting a record high of 46 million. Zillow currently hosts over 2 million active listings, surpassing any other rental network.

While 2024 saw the largest rental construction boom since the 1970s, lease concessions are declining, with the share of listings offering incentives dropping from 40% in March to under 35% in April. Renters, who are nearly four times more likely to move than homeowners, can utilize Zillow's tools including move-in-date filters, 3D tours, and rent affordability calculators to streamline their search and maintain their budget.

According to Zillow's latest market report, the housing market shows mixed signals as newly pending sales fell 2.5% year-over-year in April 2025, despite lower mortgage rates. However, new listings surged 7.6% compared to last year, with 44 of 50 largest metros seeing increases. Inventory levels rose nearly 20% year-over-year, reaching levels not seen since August 2020.

Economic uncertainty has caused buyer hesitation, though mortgage payments are 1.3% lower than last year. 25% of Zillow listings saw price cuts in April - the highest share since 2018. Homes now take a median of 16 days to sell, three days slower than last year. Regional variations show stronger seller markets in the Northeast, particularly in Buffalo, Hartford, and Boston, while buyers have more leverage in Southern markets like Tampa, Jacksonville, and Miami.

Zillow Group (Nasdaq: Z, ZG) announced its participation in the upcoming Bernstein Strategic Decisions Conference in New York. CEO Jeremy Wacksman will engage in a fireside chat scheduled for Thursday, May 29, at 10:30 a.m. PT / 1:30 p.m. ET. Investors and interested parties can access the live webcast through registration, and both live and recorded versions will be available in the Events & Presentations section of Zillow Group's Investor Relations website.