After a year of mostly flat growth, home values are predicted to rise a modest 1.2% in 2026.

After a year of mostly flat growth, home values are predicted to rise a modest 1.2% in 2026. Of course, local markets have their own dynamics, and some markets will lose value while others see larger price growth. The economists predict 12 major markets will see price declines next year, half the number that experienced price drops in 2025. Prices in the South are expected to see the biggest bounceback. For example, modest price growth is predicted for markets like Miami, Orlando and Atlanta, which have been slowly recovering from steep price declines in 2024.

For buyers, the modest price growth could make saving for a down payment easier and improve affordability, especially if wage growth continues to outpace the rise in prices. For sellers, the price trend could mean more stable pricing strategies and more consistent buyer demand for well-priced and well-marketed homes.

As affordability improves for buyers, and more sellers list their homes for sale in 2026, economists expect competition to pick up.

Source: Zillow