January 2026 Housing Market Report: Where Home Prices Fell, Where Sellers Cut, and Who Could Afford to Buy
In January 2026 the typical U.S. home was worth $367,350, up 0.2% in a year. Values fell in 15 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 January 2026
The typical U.S. home rose 0.2% over the year to $367,350 in January, according to the Zillow Home Value Index, and is up 32.8% over five years. A 20%-down mortgage on that home cost $1,781 a month in principal and interest and took about $95,299 of household income. Typical rent was $1,894, up 1.9% in a year. 20.0% of listings cut their price during the month, homes went pending in 71 days, and 1.16M homes were for sale, up 9.1% from a year earlier.
Underneath that average, the 50 states moved in different directions. Values were falling in 15 states and rising in 34; 29 states were at an all-time high while Arizona sat 8.7% below its July 2022 peak of $462,506. This report reads the state-level Zillow files for January 2026 as published, with no modeling and no forecasts.
Where home prices were falling: 15 states
The steepest year-over-year declines were in Florida (-4.9%), Arizona (-2.6%), Colorado (-2.5%), Texas (-2.4%), and Georgia (-1.9%). Florida's typical home stood at $377,007, 6.8% below its May 2024 peak of $404,529. At the other end, North Dakota (+5.0%), Wisconsin (+4.9%), and Connecticut (+4.4%) posted the fastest gains.
By region, the West carried the highest median state value at $478K and the Midwest the lowest at $271K. The West was down 0.5% 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 1 of its 11 states, the South was flat on the median state, with values falling in 7 of its 14 states, and the Midwest was up 3.3% on the median state, with values falling in 0 of its 12 states.
| State | Typical home | 1 yr | 5 yr | vs. peak |
|---|---|---|---|---|
| Florida | $377,007 | -4.9% | +36.6% | -6.8% |
| Arizona | $422,451 | -2.6% | +30.2% | -8.7% |
| Colorado | $541,683 | -2.5% | +22.1% | -5.6% |
| Texas | $303,119 | -2.4% | +25.3% | -4.9% |
| Georgia | $332,207 | -1.9% | +38.3% | -2.4% |
| California | $766,597 | -1.9% | +26.3% | -1.9% |
| Hawaii | $830,411 | -1.9% | +26.6% | -2.7% |
| Nevada | $447,910 | -1.8% | +33.9% | -3.0% |
| Oregon | $499,736 | -0.9% | +21.5% | -2.9% |
| North Carolina | $335,982 | -0.7% | +38.9% | -0.8% |
Where sellers were cutting prices: Arizona led at 25.9%
Price cuts are the earliest sign that a market is turning. Arizona (25.9%), Indiana (23.8%), Utah (23.3%), Ohio (23.1%), and Tennessee (22.9%) had the largest share of listings with a reduced price, all above the national 20.0%. The fewest cuts were in New York (11.8%), Vermont (13.0%), and Wyoming (13.3%).
Combining price cuts with days to pending and the change in homes for sale, 9 states were cold, buyer's markets (Colorado, Utah, Nevada, Florida, North Carolina, Tennessee, Georgia, South Carolina, and Texas) and 0 were hot, seller's markets. Florida had the slowest sales at 99 days to pending; Connecticut the fastest at 38.
| State | Price cuts | vs. year ago | Days to pending | Homes for sale | Market |
|---|---|---|---|---|---|
| Arizona | 25.9% | -1.1 pts | 71 | +10.6% | Cool |
| Indiana | 23.8% | -0.6 pts | 55 | +11.7% | Cool |
| Utah | 23.3% | +0.5 pts | 75 | +14.5% | Cold |
| Ohio | 23.1% | 0.0 pts | 44 | +9.9% | Cool |
| Tennessee | 22.9% | -0.9 pts | 80 | +17.1% | Cold |
| Nevada | 22.6% | +1.1 pts | 77 | +11.8% | Cold |
| Maryland | 21.8% | +1.0 pts | 51 | +25.2% | Cool |
| Florida | 21.7% | -2.1 pts | 99 | +2.2% | Cold |
| Georgia | 21.3% | -0.8 pts | 86 | +14.5% | Cold |
| South Carolina | 21.3% | -1.2 pts | 79 | +16.6% | 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 $189K, median earns $92K), Hawaii (needed $192K, median earns $95K), and Washington (needed $151K, median earns $90K).
Renting was cheaper than a mortgage payment in 35 of the 50 largest metros, one per state. The widest gap in favor of renting was Los Angeles (California) at $1,743 a month; buying won most clearly in Charleston (West Virginia), where the payment was $482 below rent. Both comparisons leave out property tax, insurance and maintenance.
| State | Typical home | Payment | Income needed | Median income | Gap |
|---|---|---|---|---|---|
| West Virginia | $175,699 | $852 | $44,077 | $54,515 | -19% |
| Iowa | $236,193 | $1,145 | $66,732 | $72,429 | -8% |
| Mississippi | $194,588 | $944 | $52,532 | $52,985 | -1% |
| Kentucky | $232,518 | $1,128 | $60,271 | $60,407 | -0% |
| Indiana | $256,354 | $1,243 | $66,723 | $65,870 | +1% |
| California | $766,597 | $3,717 | $188,773 | $91,905 | +105% |
| Hawaii | $830,411 | $4,027 | $191,870 | $94,814 | +102% |
| Washington | $601,367 | $2,916 | $150,799 | $90,325 | +67% |
| Massachusetts | $657,932 | $3,190 | $168,368 | $101,370 | +66% |
| Idaho | $478,252 | $2,319 | $112,283 | $68,930 | +63% |
How to read this report
Every housing figure is Zillow Research's published number for January 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.
January 2026 Housing Market FAQ
What is the median home price in the United States?
$355,000 was the U.S. median sale price and $392,950 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 $367,350, up 0.2% over the past year and up 32.8% over five years. A 20%-down mortgage on the typical home runs $1,781 a month in principal and interest, which takes about $95,299 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 $175,699 in the latest Zillow Research release, followed by Mississippi ($194,588), Louisiana ($214,237), Oklahoma ($220,739), and Arkansas ($223,553). A 20%-down mortgage on the typical West Virginia home is $852 a month, and buying it takes about $44,077 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 $830,411, then California ($766,597), Massachusetts ($657,932), Washington ($601,367), and New Jersey ($568,238). Buying the typical Hawaii home takes about $191,870 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 $44,077 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 ($188,773) is 105.4% above the median household income.
How much income do you need to buy a house in each state?
It ranges from $44,077 in West Virginia to $191,870 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 $95,299. 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 $852 in West Virginia to $4,027 in Hawaii; the national figure is $1,781. The cheapest payments are in West Virginia ($852), Mississippi ($944), Louisiana ($1,039), and Oklahoma ($1,070). These exclude property tax, insurance and HOA dues, which vary widely by state.
Figures are Zillow Research's published state and metro data for January 2026, shown as released with attribution; median household income is from the Census Bureau's American Community Survey. All monthly reports →