February 2026 Housing Market Report: Where Home Prices Fell, Where Sellers Cut, and Who Could Afford to Buy
In February 2026 the typical U.S. home was worth $368,072, up 0.2% in a year. Values fell in 14 states, Arizona had the most price cuts, and the median household could afford the typical home in 4 states. Zillow Research data, all 50 states.
The national picture for February 2026
The typical U.S. home rose 0.2% over the year to $368,072 in February, according to the Zillow Home Value Index, and is up 31.3% over five years. A 20%-down mortgage on that home cost $1,774 a month in principal and interest and took about $95,052 of household income. Typical rent was $1,901, up 1.9% in a year. 19.7% of listings cut their price during the month, homes went pending in 73 days, and 1.12M homes were for sale, up 7.0% from a year earlier.
Underneath that average, the 50 states moved in different directions. Values were falling in 14 states and rising in 36; 30 states were at an all-time high while Arizona sat 8.6% below its July 2022 peak of $462,506. This report reads the state-level Zillow files for February 2026 as published, with no modeling and no forecasts.
Where home prices were falling: 14 states
The steepest year-over-year declines were in Florida (-4.6%), Colorado (-2.5%), Texas (-2.3%), Arizona (-2.2%), and Nevada (-1.9%). Florida's typical home stood at $377,191, 6.8% below its May 2024 peak of $404,529. At the other end, Wisconsin (+5.2%), North Dakota (+5.1%), and Illinois (+4.6%) posted the fastest gains.
By region, the West carried the highest median state value at $479K and the South the lowest at $271K. The West was down 0.6% on the median state, with values falling in 7 of its 13 states, the Northeast was up 2.5% on the median state, with values falling in 0 of its 11 states, the Midwest was up 3.2% on the median state, with values falling in 0 of its 12 states, and the South was flat on the median state, with values falling in 7 of its 14 states.
| State | Typical home | 1 yr | 5 yr | vs. peak |
|---|---|---|---|---|
| Florida | $377,191 | -4.6% | +34.9% | -6.8% |
| Colorado | $540,579 | -2.5% | +20.1% | -5.8% |
| Texas | $303,099 | -2.3% | +23.7% | -4.9% |
| Arizona | $422,824 | -2.2% | +28.1% | -8.6% |
| Nevada | $447,800 | -1.9% | +32.1% | -3.0% |
| Georgia | $332,233 | -1.8% | +36.1% | -2.4% |
| California | $766,952 | -1.7% | +24.8% | -1.9% |
| Hawaii | $830,949 | -1.6% | +25.4% | -2.7% |
| Oregon | $499,875 | -0.9% | +19.4% | -2.9% |
| North Carolina | $336,351 | -0.7% | +37.0% | -0.7% |
Where sellers were cutting prices: Arizona led at 26.8%
Price cuts are the earliest sign that a market is turning. Arizona (26.8%), Florida (22.8%), Utah (22.7%), Nevada (22.4%), and Tennessee (22.4%) had the largest share of listings with a reduced price, all above the national 19.7%. The fewest cuts were in New York (10.6%), Wisconsin (12.0%), and Vermont (12.2%).
Combining price cuts with days to pending and the change in homes for sale, 8 states were cold, buyer's markets (Colorado, Utah, Nevada, North Carolina, Tennessee, Georgia, South Carolina, and Texas) and 1 were hot, seller's markets (Alaska). Montana had the slowest sales at 100 days to pending; Connecticut the fastest at 39.
| State | Price cuts | vs. year ago | Days to pending | Homes for sale | Market |
|---|---|---|---|---|---|
| Arizona | 26.8% | -1.5 pts | 71 | +8.2% | Cool |
| Florida | 22.8% | -2.6 pts | 99 | -1.9% | Cool |
| Utah | 22.7% | 0.0 pts | 76 | +11.9% | Cold |
| Nevada | 22.4% | +0.7 pts | 78 | +9.2% | Cold |
| Tennessee | 22.4% | -1.2 pts | 83 | +15.2% | Cold |
| Indiana | 22.1% | -0.2 pts | 60 | +10.2% | Cool |
| Georgia | 21.3% | -0.9 pts | 87 | +12.2% | Cold |
| South Carolina | 21.2% | -1.5 pts | 82 | +14.7% | Cold |
| Ohio | 21.1% | 0.0 pts | 47 | +8.1% | Cool |
| Texas | 20.6% | -1.0 pts | 96 | +9.6% | Cold |
Who could still afford to buy: the median household cleared the bar in 4 states
Zillow's income-needed figure assumes 20% down at that month's rates and a payment of no more than 30% of income. Set against each state's median household income from the Census Bureau, the typical household could afford the typical home in 4 of 50 states: West Virginia, Iowa, Mississippi, and Kentucky. The widest gaps were in California (needed $188K, median earns $92K), Hawaii (needed $191K, median earns $95K), and Washington (needed $150K, median earns $90K).
Renting was cheaper than a mortgage payment in 33 of the 50 largest metros, one per state. The widest gap in favor of renting was Los Angeles (California) at $1,716 a month; buying won most clearly in Charleston (West Virginia), where the payment was $488 below rent. Both comparisons leave out property tax, insurance and maintenance.
| State | Typical home | Payment | Income needed | Median income | Gap |
|---|---|---|---|---|---|
| West Virginia | $176,451 | $851 | $44,046 | $54,515 | -19% |
| Iowa | $237,303 | $1,144 | $66,743 | $72,429 | -8% |
| Mississippi | $196,095 | $945 | $52,657 | $52,985 | -1% |
| Kentucky | $233,108 | $1,124 | $60,142 | $60,407 | -0% |
| Indiana | $257,441 | $1,241 | $66,687 | $65,870 | +1% |
| California | $766,952 | $3,697 | $187,985 | $91,905 | +105% |
| Hawaii | $830,949 | $4,006 | $191,044 | $94,814 | +102% |
| Washington | $601,665 | $2,901 | $150,186 | $90,325 | +66% |
| Massachusetts | $659,213 | $3,178 | $167,931 | $101,370 | +66% |
| Idaho | $479,393 | $2,311 | $111,993 | $68,930 | +63% |
How to read this report
Every housing figure is Zillow Research's published number for February 2026: the Zillow Home Value Index (typical value of homes in the middle third of a market, not a median sale price), the Zillow Observed Rent Index for each state's largest metro, Zillow's mortgage payment and income-needed series, and its inventory, price-cut and days-to-pending metrics. Sale and list prices are the latest available at the time, which can lag a month. Median household income is from the Census Bureau's American Community Survey and does not change month to month. The current 50-state table, map and a page for every state are on the housing hub.
February 2026 Housing Market FAQ
What is the median home price in the United States?
$353,333 was the U.S. median sale price and $391,617 the median list price in the latest Zillow Research release. The typical U.S. home value, the Zillow Home Value Index this page ranks states by, is $368,072, up 0.2% over the past year and up 31.3% over five years. A 20%-down mortgage on the typical home runs $1,774 a month in principal and interest, which takes about $95,052 of household income.
What is the cheapest state to buy a house?
West Virginia is the cheapest state to buy a house, with a typical home value of $176,451 in the latest Zillow Research release, followed by Mississippi ($196,095), Louisiana ($215,525), Oklahoma ($221,577), and Arkansas ($224,772). A 20%-down mortgage on the typical West Virginia home is $851 a month, and buying it takes about $44,046 of income against a median household income of $54,515.
Which state has the most expensive homes?
Hawaii has the most expensive typical home at $830,949, then California ($766,952), Massachusetts ($659,213), Washington ($601,665), and New Jersey ($570,623). Buying the typical Hawaii home takes about $191,044 of household income; the state's median household earns $94,814.
Which states are most affordable relative to income?
West Virginia is the most affordable state relative to what households actually earn: buying the typical home takes $44,046 of income and the median household earns $54,515. The next most affordable are Iowa, Mississippi, Kentucky, and Indiana. The least affordable is California, where the income needed ($187,985) is 104.5% above the median household income.
How much income do you need to buy a house in each state?
It ranges from $44,046 in West Virginia to $191,044 in Hawaii, using Zillow's assumptions of 20% down at current mortgage rates and a payment of no more than 30% of income. Nationally the figure is $95,052. The median household earns enough to clear that bar in 4 states and falls short in 46. The full figure for every state is in the table above.
What is the average mortgage payment by state?
The monthly principal-and-interest payment on the typical home with 20% down ranges from $851 in West Virginia to $4,006 in Hawaii; the national figure is $1,774. The cheapest payments are in West Virginia ($851), Mississippi ($945), Louisiana ($1,039), and Oklahoma ($1,068). These exclude property tax, insurance and HOA dues, which vary widely by state.
Figures are Zillow Research's published state and metro data for February 2026, shown as released with attribution; median household income is from the Census Bureau's American Community Survey. All monthly reports →