Zillow's 2024 Market Predictions Point to Plateauing Prices

Brie Williams

The housing market hasn't been easy to navigate in the last few years, with high mortgage rates and inflation making the average homeowner feel weary. But things are starting to look up—if slowly—across the market, according to Zillow’s 2024 Housing Market Predictions.

The online real estate marketplace says the new year will see more homes put up for sale, plateauing prices, and continued demand for single-family rentals—the latter due to a trend of households waiting to buy. Downtown areas might rise in demand, and house flippers may come into competition with first-time buyers looking for fixer uppers.

In October, the average percent of earnings spent on mortgage payments peaked at 40%, the highest-ever level recorded by Zillow since the platform started compiling data in the '90s. Many homeowners are waiting for interest rates to drop before moving into a new house, but the market’s stagnancy may result in an increase of homes put up for sale. This means you can expect more options at various price points if you're a buyer (though a majority will still be on the expensive side).

Houses may get slightly more affordable, with prices plateauing—dropping by a slight 0.2% in value in 2024. According to Zillow, mortgage rates are more difficult to predict now. But looking at inflation trends gives reason for hope: The slow market, stagnant prices, and steady mortgage rates (referred to as “higher for longer” by the home-buying industry) allow shoppers to take their time to build up their savings.

Even so, prohibitively high housing prices continue to make the single-family rental market thrive. Young families are hunting for leases that provide privacy and a backyard without the long-term commitment and