Zillow Revises 2025 Housing Market Forecast

[Mohamed Youssef]

Zillow's April 2025 forecast projects a 1.9% decline in home values this year, a notable shift from the previously anticipated 0.6% increase. This adjustment reflects a market where increased inventory is providing buyers with more options, leading to softer price growth.

Despite the dip in home values, existing home sales are expected to rise to 4.3 million, up from 4.1 million in 2024. Mortgage rates remain volatile, with expectations to settle around 6.5% by the end of this year.

The rental market also shows movement, with single-family rents projected to increase by 3.6% and multifamily rents by 2.5% in 2025.

With a projected decline in values and a rise in rents, it may be the right time to stay alert and look for promising opportunities. Each state and metro area is moving differently, so it’s worth checking the data for your local market here: https://www.zillow.com/research/home-value-sales-forecast-33...