A Market Outlook from The DoWell Group
The latest housing inflation forecast from Zillow signals a potential shift in the real estate landscape. Rents and shelter costs are expected to slow significantly through late 2025 and into 2026. For our community at The DoWell Group, this creates new opportunities for homeowners, buyers, renters, and investors.
Key Forecast Highlights
According to Zillow’s August CPI Shelter Forecast:
- Owners’ Equivalent Rent (OER) is projected to rise 3.3% year-over-year by the end of 2025, then slow to around 1.6% in 2026.
- Rent of Primary Residence is expected to grow by 2.9% in 2025 and 1.2% in 2026.
- On-market rent growth is likely to cool further. Single-family homes may see about 2.6% growth, while apartments could slow to 0.9%.
- Shelter inflation, a major driver of the Consumer Price Index (CPI), may continue easing as rental markets normalize.
While the most recent CPI data showed a slight bump, Zillow’s outlook still points to a gradual slowdown ahead.
What This Means for You
For Homeowners & Sellers
- Home values are expected to keep rising, but at a steadier pace than in recent years.
- Refinancing opportunities may improve if inflation eases and rates stabilize.
- If you are considering renovations, refinancing, or selling, this is a good time to be thoughtful about timing and positioning.
For Buyers
- Slower price growth may create more breathing room in the market.
- With less urgency, buyers can focus on making smart, long-term investments.
For Renters & Investors
- Rents may level off, making renewal increases and new lease rates more manageable.
- Investors may experience more predictable returns as rent growth steadies.
- Retaining quality tenants can become an important strategy for maintaining stability.
Market Factors to Watch
- Economic shifts such as inflation spikes or changes in interest rates could affect the forecast.
- Local market dynamics may vary depending on supply, demand, and migration patterns.
- Regulatory changes like zoning adjustments or rent control could influence future growth.
- New construction and additional housing supply may place downward pressure on rent increases.
How The DoWell Group Can Help You Navigate the Shift
At The DoWell Group, we combine national insights with local expertise to help clients make confident real estate decisions.
- We provide customized market analysis that reflects your neighborhood and property type.
- We help plan financial strategies, including refinancing, equity building, and long-term growth.
- We guide investors with cash flow projections and market outlooks.
- We help determine the best timing to buy, sell, or invest based on your specific goals.
Final Takeaway
Zillow’s CPI Shelter Forecast points to a more stable housing market ahead. Rent growth is expected to slow, home price appreciation may moderate, and mortgage rates could ease.
This is a moment to make thoughtful moves, not rushed ones. A clear plan and trusted guidance can make all the difference in this changing landscape.
Talk to The DoWell Group to explore how these market trends align with your real estate goals. Whether you’re buying, selling, or investing, we’ll help you build a strategy that fits your vision and timeline.
