July 2026 Housing Market Report: Where Home Prices Fell, Where Sellers Cut, and Who Could Afford to Buy
In July 2026 the typical U.S. home was worth $368,250, up 1.0% in a year. Values fell in 9 states, Colorado had the most price cuts, and the median household could afford the typical home in 2 states. Zillow Research data, all 50 states.
The national picture for July 2026
The typical U.S. home rose 1.0% over the year to $368,250 in July, according to the Zillow Home Value Index, and is up 21.5% over five years. A 20%-down mortgage on that home cost $1,870 a month in principal and interest and took about $98,917 of household income. Typical rent was $1,944, up 2.3% in a year. 25.6% of listings cut their price during the month, homes went pending in 51 days, and 1.39M homes were for sale, up 1.3% from a year earlier.
Underneath that average, the 50 states moved in different directions. Values were falling in 9 states and rising in 38; 27 states were at an all-time high while Arizona sat 9.5% below its July 2022 peak of $462,506. This report reads the state-level Zillow files for July 2026 as published, with no modeling and no forecasts.
Where home prices were falling: 9 states
The steepest year-over-year declines were in Florida (-2.2%), Nevada (-2.0%), Texas (-1.8%), Colorado (-1.7%), and Arizona (-1.4%). Florida's typical home stood at $375,277, 7.2% below its May 2024 peak of $404,529. At the other end, Alaska (+5.9%), New York (+5.3%), and North Dakota (+5.3%) posted the fastest gains.
By region, the West carried the highest median state value at $477K and the South the lowest at $270K. The West was up 0.5% on the median state, with values falling in 5 of its 13 states, the Northeast was up 2.4% on the median state, with values falling in 0 of its 11 states, the Midwest was up 3.6% on the median state, with values falling in 0 of its 12 states, and the South was up 1.2% on the median state, with values falling in 4 of its 14 states.
| State | Typical home | 1 yr | 5 yr | vs. peak |
|---|---|---|---|---|
| Florida | $375,277 | -2.2% | +22.5% | -7.2% |
| Nevada | $442,696 | -2.0% | +18.1% | -4.1% |
| Texas | $299,619 | -1.8% | +12.6% | -6.0% |
| Colorado | $531,997 | -1.7% | +7.9% | -7.3% |
| Arizona | $418,432 | -1.4% | +11.8% | -9.5% |
| Kentucky | $232,419 | -0.7% | +25.9% | -1.0% |
| Georgia | $330,865 | -0.7% | +23.9% | -2.8% |
| Washington | $591,755 | -0.4% | +12.1% | -2.8% |
| Oregon | $495,362 | -0.3% | +8.6% | -3.7% |
Where sellers were cutting prices: Colorado led at 31.1%
Price cuts are the earliest sign that a market is turning. Colorado (31.1%), Tennessee (31.0%), Utah (30.7%), Arizona (30.1%), and Washington (30.0%) had the largest share of listings with a reduced price, all above the national 25.6%. The fewest cuts were in New York (16.5%), Wisconsin (17.3%), and Wyoming (18.3%).
Combining price cuts with days to pending and the change in homes for sale, 6 states were cold, buyer's markets (Utah, North Carolina, Tennessee, Georgia, South Carolina, and Oklahoma) and 3 were hot, seller's markets (California, Rhode Island, and North Dakota). Florida had the slowest sales at 89 days to pending; Connecticut the fastest at 21.
| State | Price cuts | vs. year ago | Days to pending | Homes for sale | Market |
|---|---|---|---|---|---|
| Colorado | 31.1% | -1.2 pts | 50 | -3.1% | Warm |
| Tennessee | 31.0% | -1.1 pts | 61 | +8.8% | Cold |
| Utah | 30.7% | -1.3 pts | 52 | +2.2% | Cold |
| Arizona | 30.1% | -2.7 pts | 64 | -0.9% | Cool |
| Washington | 30.0% | +1.3 pts | 39 | +14.0% | Cool |
| Indiana | 28.9% | -0.4 pts | 37 | +9.6% | Cool |
| North Carolina | 28.5% | -0.2 pts | 55 | +8.9% | Cold |
| South Carolina | 28.2% | -0.2 pts | 69 | +8.1% | Cold |
| Oregon | 28.1% | -1.4 pts | 50 | +0.7% | Cool |
| Georgia | 28.1% | -1.6 pts | 68 | +5.0% | Cold |
Who could still afford to buy: the median household cleared the bar in 2 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 2 of 50 states: West Virginia and Iowa. The widest gaps were in California (needed $195K, median earns $92K), Hawaii (needed $200K, median earns $95K), and Massachusetts (needed $175K, median earns $101K).
Renting was cheaper than a mortgage payment in 37 of the 50 largest metros, one per state. The widest gap in favor of renting was Los Angeles (California) at $1,896 a month; buying won most clearly in Charleston (West Virginia), where the payment was $461 below rent. Both comparisons leave out property tax, insurance and maintenance.
| State | Typical home | Payment | Income needed | Median income | Gap |
|---|---|---|---|---|---|
| West Virginia | $178,955 | $909 | $46,468 | $54,515 | -15% |
| Iowa | $238,957 | $1,214 | $69,647 | $72,429 | -4% |
| Kentucky | $232,419 | $1,180 | $62,401 | $60,407 | +3% |
| Mississippi | $197,663 | $1,004 | $55,080 | $52,985 | +4% |
| Kansas | $248,837 | $1,264 | $73,579 | $69,747 | +6% |
| California | $762,865 | $3,874 | $194,917 | $91,905 | +112% |
| Hawaii | $830,594 | $4,218 | $199,558 | $94,814 | +111% |
| Massachusetts | $660,207 | $3,353 | $175,006 | $101,370 | +73% |
| New Jersey | $578,009 | $2,936 | $165,455 | $97,126 | +70% |
| Washington | $591,755 | $3,005 | $153,941 | $90,325 | +70% |
How to read this report
Every housing figure is Zillow Research's published number for July 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.
July 2026 Housing Market FAQ
What is the median home price in the United States?
$383,633 was the U.S. median sale price and $414,667 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 $368,250, up 1.0% over the past year and up 21.5% over five years. A 20%-down mortgage on the typical home runs $1,870 a month in principal and interest, which takes about $98,917 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 $178,955 in the latest Zillow Research release, followed by Mississippi ($197,663), Louisiana ($216,883), Oklahoma ($222,811), and Arkansas ($226,854). A 20%-down mortgage on the typical West Virginia home is $909 a month, and buying it takes about $46,468 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 $830,594, then California ($762,865), Massachusetts ($660,207), Washington ($591,755), and New Jersey ($578,009). Buying the typical Hawaii home takes about $199,558 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 $46,468 of income and the median household earns $54,515. The next most affordable are Iowa, Kentucky, Mississippi, and Kansas. The least affordable is California, where the income needed ($194,917) is 112.1% above the median household income.
How much income do you need to buy a house in each state?
It ranges from $46,468 in West Virginia to $199,558 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 $98,917. The median household earns enough to clear that bar in 2 states and falls short in 48. 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 $909 in West Virginia to $4,218 in Hawaii; the national figure is $1,870. The cheapest payments are in West Virginia ($909), Mississippi ($1,004), Louisiana ($1,101), and Oklahoma ($1,132). These exclude property tax, insurance and HOA dues, which vary widely by state.
Figures are Zillow Research's published state and metro data for July 2026, shown as released with attribution; median household income is from the Census Bureau's American Community Survey. All monthly reports →