Zillow Group, Inc. Class C Capital Stock - Z STOCK NEWS

Manchester, New Hampshire topped Zillow's most popular cities list for 2024, leading a Northeast-dominated ranking as home shoppers prioritized affordability and exurban locations. The city saw a 7.3% home value increase to $415,000, while remaining more affordable than nearby Boston.

The top 10 markets featured mostly exurban communities, with Rockford, Illinois and Stamford, Connecticut completing the top three. Only one West Coast market, Sunnyvale, California, made the list. Other category winners included Toledo, Ohio (large cities), Elizabethtown, Pennsylvania (small towns), Milford, Connecticut (coastal), Portland, Maine (vacation), Pahrump, Nevada (retirement), and Normal, Illinois (college towns).

Zillow's 2025 housing market forecast predicts a gradual increase in home sales from 4.06 million in 2024 to 4.16 million in 2025, contingent on declining mortgage rates. Home values are expected to grow by 2.2% over 2025, similar to the 2.3% annual appreciation observed in November.

The market shows signs of normalizing, with inventory deficits improving from pandemic lows. New listings are now only 14% below pre-pandemic levels, compared to a 25% deficit in March. Total inventory remains 26% below 2018-2019 norms, the smallest gap since September 2020. The current market is becoming more buyer-friendly, with less than 28% of homes selling above list price in October, and reduced competition during winter months provides better negotiating opportunities for buyers.

Zillow has brought back Santa's House, a popular virtual holiday attraction that has garnered over 3 million views. The listing introduces a new 'Let Santa Know You Moved' feature, allowing families to notify Santa of their new address when they move. Santa's House, valued at $1.2 million (up 2% since last Christmas), offers an interactive 3D tour featuring special areas like Santa's mailroom, gift-wrapping suite, and a naughty-or-nice detector.

The virtual experience includes a treasure hunt with 15 hidden holiday items. The listing uses Zillow's Showcase technology, providing immersive floor plans and AI-powered features. According to Zillow research, 51% of parents experience emotional stress while selling their home, compared to 36% of all sellers.

A new Zillow research challenges the notion that a 'silver tsunami' of empty-nest homes could solve the nation's housing shortage. While there are 20.9 million empty-nest households nationwide, these homes are predominantly located in more affordable markets rather than expensive coastal areas where housing demand is highest.

The study reveals that cities like Pittsburgh (22%), Buffalo (20%), and Cleveland (20%) have the highest share of empty-nest households. Conversely, high-demand metros like San Jose (35%), Austin (32%), and Denver (32%) have the largest share of young residents but fewer empty-nest homes. This geographical mismatch suggests that the 'silver tsunami' would have minimal impact on addressing housing affordability in high-demand areas.

Zillow Rentals reveals America's preferred celebrity roommates in a new survey, with Ryan Reynolds leading at 17% overall, followed by Taylor Swift at 14%. Among Gen Z, who represent 47% of recent renters, Zendaya tops the list with 19% preference.

In the athletes category, Simone Biles leads with 17% overall, tying with LeBron James at 22% among Gen Z. Social media influencer Druski dominates the content creator category with 24% Gen Z preference.

The survey also reveals that 81% of Americans have lived with roommates, with 93% experiencing annoying habits. The most valued quality in a roommate is respect for personal space (31%), while not helping clean (28%) is the most common complaint.

Zillow forecasts a more active housing market in 2025, predicting 2.6% home value growth and 4.3 million existing home sales. While mortgage rates are expected to ease, their unpredictability will continue to impact buyer decisions. The market is projected to become more buyer-friendly, particularly in the Southwest, with increased inventory providing more negotiating power. Home buyers are embracing smaller, 'cozier' spaces as an affordable alternative. In the rental market, the historic multifamily construction boom is expected to slow down in the second half of 2025, potentially reducing rent concessions. Property managers are adapting to an older renter demographic (median age 42) with increasing pet ownership (58% of renters).

Zillow's latest market report shows home buyers gaining leverage nationwide as competition eases in October. The shift is most prominent in Florida, Texas, and New Orleans, with Pittsburgh and Louisville joining 11 other major metros where buyers have an edge in negotiations. Monthly mortgage payments rose 2.8% month-over-month in October, though they remain $179 lower than last year. Inventory continues recovering from pandemic lows, now 28% below pre-pandemic norms - the smallest shortfall since September 2020. Markets with stronger inventory recovery and new construction are seeing softer home value appreciation, with the largest monthly drops in Austin, Dallas, Atlanta, Tampa, and San Antonio.

A new Zillow analysis reveals that middle-income households could afford more homes in September 2024 than in any month since February 2023. When mortgage rates averaged 6.18% in September, 27.7% of homes for sale were affordable, up from 22.7% in May when rates were at 7.06%. However, rates have since climbed back to 6.78% by mid-November, highlighting market volatility.

In October 2024, all 50 largest metro areas showed improved affordability compared to the previous year. Pittsburgh led with 72.1% affordable listings, while Los Angeles remained least affordable at 1.6%. Sun Belt markets, particularly Austin, saw the largest year-over-year improvements in affordability.

Zillow has launched BuyAbility, a real-time affordability tool on their app that helps home shoppers instantly determine if they can afford and qualify for specific listings. The tool, powered by Zillow Home Loans, provides personalized estimates based on users' financial information and current mortgage rates. When mortgage rates shift from 7% to 6%, a median-income household's buying power increases from $380,000 to $420,000 with a 20% down payment. According to Zillow data, 79% of recent buyers prioritize staying within budget, and in September, 27.3% of listed homes were affordable for median-income households, up from 22.7% in May when rates peaked above 7%.