This week, Zillow economists released a revised housing market forecast, predicting that U.S. home prices, as measured by the Zillow Home Value Index, will rise 1.1% between January 2025 and January 2026. This is a significant downward revision from their previous projection of a 2.9% increase. So, what does this mean for homeowners and potential buyers—especially here in Atlanta, GA?
Let’s break down the key insights and how they may impact the Atlanta housing market.
National Home Prices: A Slower Growth Outlook
Zillow’s latest forecast suggests that home value growth across the U.S. will be weaker than previously expected. According to Zillow economists, higher-than-anticipated new listings and an increase in housing inventory are putting downward pressure on home values.
Additionally, Zillow predicts that U.S. existing home sales will remain at 4.1 million in 2025, unchanged from 2023 and 2024. For perspective, pre-pandemic 2019 saw 5.3 million existing home sales. This stagnation reflects ongoing challenges from elevated mortgage rates, which continue to dampen buyer demand.
What About Atlanta? A Brighter Outlook
While national home prices are expected to rise just 1.1%, the Atlanta market is projected to perform slightly better, with an anticipated 1.7% increase over the next year. This indicates that the Metro Atlanta area remains a desirable location, with more resilient demand compared to many other U.S. markets.
Why Is Atlanta Outperforming?
Strong Local Economy: Atlanta’s diverse job market continues to attract buyers.
Population Growth: The region remains a popular relocation destination.
Inventory Balance: While listings are increasing, demand in Atlanta still supports price growth.
Key Takeaway for Homeowners: If you’re considering selling in Atlanta, you may still capture some appreciation. However, competitive pricing strategies will be crucial as more inventory comes to market.
Rental Market Trends: Higher Costs Ahead
As many buyers hold off on purchasing due to high mortgage rates, the rental market is heating up. Zillow forecasts a 3.7% increase in single-family home rents and a 3.1% rise in multifamily rents in 2025.
For Atlanta, this means:
Investors may benefit from rising rental yields.
Renters should expect continued price increases as housing supply remains tight.
Winners and Losers: The Strongest and Weakest U.S. Housing Markets
Zillow’s forecast identifies areas expected to see the most growth—and the sharpest declines. Among the 300 largest U.S. housing markets, these cities top the lists:
Top 5 Markets for Price Growth (Jan 2025 – Jan 2026):
Knoxville, TN: +5.2%
Atlantic City, NJ: +5.1%
Torrington, CT: +4.8%
Bangor, ME: +4.8%
Kingston, NY: +4.7%
Markets Expected to Decline the Most:
Lake Charles, LA: -7.3%
Houma, LA: -6.4%
New Orleans, LA: -5.1%
Lafayette, LA: -4.1%
Shreveport, LA: -3.9%
What This Means for Atlanta Buyers and Sellers
If you’re planning to sell your home in Atlanta, you still have opportunities to benefit from rising home values—but it’s essential to price your property competitively. Overpricing could cause your home to sit on the market longer, especially as inventory increases.
For buyers, more listings mean greater choice and potentially better deals, but elevated mortgage rates could continue to impact affordability. Staying informed on market conditions will be key to finding the right opportunity.
Final Thoughts: Stay Ahead in Atlanta’s Housing Market
The Atlanta housing market is expected to outperform the national average in 2025, but the pace of home price growth is slowing. Whether you’re buying or selling, understanding these shifts can help you make informed decisions.
At FSBO Near Me, we specialize in providing personalized property valuations and expert consultation to help you navigate the evolving market. Ready to discuss your next move? Book a consultation today and let us guide you to success in 2025.
