May 2026 Housing Market Report: Where Home Prices Fell, Where Sellers Cut, and Who Could Afford to Buy
In May 2026 the typical U.S. home was worth $368,385, up 0.7% in a year. Values fell in 11 states, Arizona 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 May 2026
The typical U.S. home rose 0.7% over the year to $368,385 in May, according to the Zillow Home Value Index, and is up 25.6% over five years. A 20%-down mortgage on that home cost $1,852 a month in principal and interest and took about $98,173 of household income. Typical rent was $1,931, up 2.0% in a year. 23.3% of listings cut their price during the month, homes went pending in 53 days, and 1.3M homes were for sale, up 3.0% from a year earlier.
Underneath that average, the 50 states moved in different directions. Values were falling in 11 states and rising in 38; 25 states were at an all-time high while Arizona sat 9.1% below its July 2022 peak of $462,506. This report reads the state-level Zillow files for May 2026 as published, with no modeling and no forecasts.
Where home prices were falling: 11 states
The steepest year-over-year declines were in Florida (-3.3%), Colorado (-2.3%), Nevada (-2.1%), Texas (-1.9%), and Arizona (-1.6%). Florida's typical home stood at $376,203, 7.0% below its May 2024 peak of $404,529. At the other end, North Dakota (+5.5%), Alaska (+5.4%), and Wisconsin (+5.2%) posted the fastest gains.
By region, the West carried the highest median state value at $476K and the South 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 2.4% on the median state, with values falling in 0 of its 11 states, the Midwest was up 3.8% on the median state, with values falling in 0 of its 12 states, and the South was up 0.9% on the median state, with values falling in 4 of its 14 states.
| State | Typical home | 1 yr | 5 yr | vs. peak |
|---|---|---|---|---|
| Florida | $376,203 | -3.3% | +28.3% | -7.0% |
| Colorado | $533,357 | -2.3% | +12.0% | -7.0% |
| Nevada | $445,148 | -2.1% | +24.5% | -3.6% |
| Texas | $301,268 | -1.9% | +17.3% | -5.5% |
| Arizona | $420,535 | -1.6% | +18.9% | -9.1% |
| Georgia | $331,560 | -1.0% | +28.8% | -2.6% |
| California | $763,629 | -0.8% | +19.1% | -2.3% |
| Kentucky | $232,833 | -0.7% | +29.1% | -0.8% |
| Oregon | $496,146 | -0.6% | +12.1% | -3.6% |
| Washington | $594,611 | -0.6% | +16.7% | -2.3% |
Where sellers were cutting prices: Arizona led at 31.2%
Price cuts are the earliest sign that a market is turning. Arizona (31.2%), Tennessee (28.9%), Utah (27.9%), Colorado (27.2%), and South Carolina (26.6%) had the largest share of listings with a reduced price, all above the national 23.3%. The fewest cuts were in Wisconsin (13.4%), New York (13.8%), and Connecticut (14.5%).
Combining price cuts with days to pending and the change in homes for sale, 8 states were cold, buyer's markets (Nevada, Arizona, North Carolina, Tennessee, Georgia, South Carolina, Texas, and Oklahoma) and 3 were hot, seller's markets (California, Rhode Island, and Alaska). Florida had the slowest sales at 90 days to pending; Connecticut the fastest at 23.
| State | Price cuts | vs. year ago | Days to pending | Homes for sale | Market |
|---|---|---|---|---|---|
| Arizona | 31.2% | -2.8 pts | 62 | +2.3% | Cold |
| Tennessee | 28.9% | -0.6 pts | 63 | +13.3% | Cold |
| Utah | 27.9% | -0.9 pts | 50 | +4.3% | Cool |
| Colorado | 27.2% | -0.8 pts | 51 | +1.3% | Cool |
| South Carolina | 26.6% | -0.7 pts | 70 | +10.3% | Cold |
| Nevada | 26.0% | -1.6 pts | 60 | +0.8% | Cold |
| Georgia | 25.8% | -1.0 pts | 70 | +7.5% | Cold |
| North Carolina | 25.7% | -0.1 pts | 54 | +11.8% | Cold |
| Florida | 25.2% | -3.8 pts | 90 | -10.8% | Cool |
| Indiana | 25.2% | -0.3 pts | 42 | +12.2% | Cool |
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 $194K, median earns $92K), Hawaii (needed $198K, median earns $95K), and Massachusetts (needed $173K, median earns $101K).
Renting was cheaper than a mortgage payment in 36 of the 50 largest metros, one per state. The widest gap in favor of renting was Los Angeles (California) at $1,861 a month; buying won most clearly in Charleston (West Virginia), where the payment was $457 below rent. Both comparisons leave out property tax, insurance and maintenance.
| State | Typical home | Payment | Income needed | Median income | Gap |
|---|---|---|---|---|---|
| West Virginia | $178,084 | $895 | $45,887 | $54,515 | -16% |
| Iowa | $238,614 | $1,199 | $69,052 | $72,429 | -5% |
| Kentucky | $232,833 | $1,170 | $62,009 | $60,407 | +3% |
| Mississippi | $198,044 | $995 | $54,751 | $52,985 | +3% |
| Kansas | $248,174 | $1,247 | $72,879 | $69,747 | +5% |
| California | $763,629 | $3,838 | $193,500 | $91,905 | +111% |
| Hawaii | $830,184 | $4,173 | $197,720 | $94,814 | +109% |
| Massachusetts | $659,393 | $3,314 | $173,413 | $101,370 | +71% |
| Washington | $594,611 | $2,989 | $153,403 | $90,325 | +70% |
| New Jersey | $575,280 | $2,892 | $163,496 | $97,126 | +68% |
How to read this report
Every housing figure is Zillow Research's published number for May 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.
May 2026 Housing Market FAQ
What is the median home price in the United States?
$373,716 was the U.S. median sale price and $409,633 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 $368,385, up 0.7% over the past year and up 25.6% over five years. A 20%-down mortgage on the typical home runs $1,852 a month in principal and interest, which takes about $98,173 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 $178,084 in the latest Zillow Research release, followed by Mississippi ($198,044), Louisiana ($216,919), Oklahoma ($222,398), and Arkansas ($226,481). A 20%-down mortgage on the typical West Virginia home is $895 a month, and buying it takes about $45,887 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 $830,184, then California ($763,629), Massachusetts ($659,393), Washington ($594,611), and New Jersey ($575,280). Buying the typical Hawaii home takes about $197,720 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 $45,887 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 ($193,500) is 110.5% above the median household income.
How much income do you need to buy a house in each state?
It ranges from $45,887 in West Virginia to $197,720 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 $98,173. 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 $895 in West Virginia to $4,173 in Hawaii; the national figure is $1,852. The cheapest payments are in West Virginia ($895), Mississippi ($995), Louisiana ($1,090), and Oklahoma ($1,118). These exclude property tax, insurance and HOA dues, which vary widely by state.
Figures are Zillow Research's published state and metro data for May 2026, shown as released with attribution; median household income is from the Census Bureau's American Community Survey. All monthly reports →