Zillow Predicts Increase In Home Sales, Kidfluence, Lifestyle Renters

Existing residence gross sales are projected to extend in 2026.

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In 2025, the U.S. housing market limped alongside in its fourth yr of residence gross sales at a 30-year low (though situations started to enhance in December, in line with the National Association of Realtors). Housing costs additionally rose – though residence values have been flat.

But, let’s go away all of that in 2025, and likewise go away all the horrible homebuying and promoting recommendation in final yr, as nicely.

According to Zillow’s 2026 housing market predictions, you’ll be able to anticipate the housing market to heat up in 2026. These are 5 key housing market tendencies to observe.

Inflation-Savvy Home Features

The Houzz Home Design Predictions for 2026 reveal that wall-mounted taps, flat-panel cupboards and vanities, and pure stone slabs with delicate drama are standard amongst renovating householders. Mischa Fisher, chief economist at Zillow, agrees that consumers are all in favour of all these standard options – however says additionally they need renewable and energy-efficient options.

“Inflation-savvy home features help households manage ongoing costs, and they’re prioritizing energy efficiency, durable materials, and smart technology that can lower utility and maintenance expenses,” Fisher says. According to Zillow information, a mortgage cost accounts for 32.6% of median family revenue (projected to enhance to 31.8% by the tip of this yr.) And in line with Bloomberg Consensus, incomes are projected to rise by 3.35% in 2026.

However, Fisher says budgets are nonetheless underneath stress, and houses that may cut back month-to-month prices stand out. “In 2026, efficiency is a core driver of value,” he says.

“Inflation-savvy features like energy-efficient appliances and smart thermostats are no longer just nice-to-haves; they are must-haves,” explains Max Stokes, realtor affiliate at Compass in New Jersey. He tells me that newer home windows with upgraded insulation are additionally high-value and may preserve heating and cooling prices in verify. “Many buyers are attracted to homes that help them save on monthly expenses, and these upgrades can make a property stand out in a competitive market.”

This view is shared by Scott Francis, actual property salesperson at SERHANT, who tells me that inflation has made folks extra sensible. “Buyers care about how a home performs day-to-day and how it holds up over time – they’re looking for quality renovations, thoughtful upgrades, and design that isn’t overly trendy.”

Kidfluence

Kidfluence is one other actual property pattern that Zillow recognized for 2026. “Kidfluence is the growing impact children have on housing decisions, and families are placing greater weight on schools, safety, walkability, and access to parks and activities,” Fisher explains.

But that’s not all. Fisher says children are additionally taking part in a task in shaping how houses are used, from versatile layouts to areas that help multigenerational dwelling.

Stokes agrees, and says kidfluence is actual. “Families are prioritizing homes near top schools, parks, and areas with kid-friendly amenities.” And whether or not it’s a single-family residence or an condo, he says properties with versatile layouts or proximity to family-centric providers will proceed to see robust demand. Zillow reveals that 37% of renters have a toddler youthful than 18 years previous at residence – up from 33% only a yr in the past.

The Lifestyle Renter Will Emerge As A Force

A home with a white picket fence was once a vital a part of the American Dream. However, Fisher tells me that life-style renting is turning into a long-term alternative, not a short lived one. The 2023 Census Bureau’s American Community Survey reveals that 35% of households dwell in a rental residence, and the median age of a renter within the U.S. is 41 years previous.

“Many renters value flexibility, location, and access to amenities more than ownership right now,” Fisher explains. As affordability stays a problem and mobility stays essential, life-style renting will proceed to play a serious position within the housing market in 2026.” In reality, he says practically 3 in 5 renters say they plan to maintain renting in 2026 – even when mortgage charges drop. Fortunately for them, lease affordability is projected to proceed bettering this yr.

Existing Home Sales Increase

Zillow initiatives that 4.26 million current houses can be bought in 2026, which represents a 4.3% improve from 2025. “Even a modest increase in home sales can signal the market has changed for buyers,” Fisher says. “More sales happen when there are more homes on the market – and more homes on the market means buyers have more leverage, more time to decide, and fewer bidding wars.”

In 2026, he says an increase in transactions means consumers can have extra alternative, and fewer competitors. “We are not shifting to a buyer’s market nationwide, but the key change is less pressure, not falling prices.”

Stokes agrees, including, “A modest increase in home sales means more inventory hitting the market, which is great news for buyers.” While competitors could ease barely, he nonetheless urges consumers to behave decisively, particularly in high-demand areas. “It is a chance to negotiate better terms without the frenzy of a booming market,” Stokes says.

To Mike Fabbri, actual property dealer at The Agency in New York City, the modest rise in gross sales is basically about confidence returning. “Buyers stop waiting for the perfect moment and start acting -especially with such limited inventory.” And he says that shift alone is sufficient to create momentum, even with out dramatic worth modifications.

When gross sales improve slowly, as an alternative of a frenzied state, Frances says this is a sign that consumers are shifting fastidiously as an alternative of emotionally. “They’re making decisions with intention, which usually leads to better outcomes and fewer regrets,” he says.

Weak New Construction

However, not all of Zillow’s 2026 actual property predictions are constructive. This stands out as the slowest yr for single-family building since 2019. Fisher explains that there’s a big inventory of recent houses which have already been constructed – together with houses which are nonetheless underneath building. So, builders are projected to carry off on new constructing initiatives.

“When new construction slows, buyers have fewer white-box options, and that puts pressure on resale homes to show better functionality and aesthetics,” Francis says. “Design, quality of renovation, layout, and livability really matter.”

And Stokes has some recommendation for consumers as nicely. “Buyers may face limited options and higher prices for move-in-ready properties,” he explains. “It is a good time to consider homes that need a little TLC or explore up-and-coming areas with potential.”

In reality, Fabbri says he not too long ago had some consumers who determined to pivot from ready on new growth to a resale as a result of they didn’t wish to wait years. “Once they adjusted expectations, they actually found exactly what they were looking for,” he says.