Sales of existing homes in the United States are expected to hit 4.16 million by the end of the year, Zillow predicts. This outcome would mark a slight 2.5% improvement in sales over 2024. In metro areas in particular, housing inventory is predicted to climb to near pre-pandemic levels by the end of 2025.
Along with this increase in inventory, Zillow forecasts that home values will drop slightly, potentially ending the year at around 2% lower than they were at the start of 2025.
Zillow also reports that the rental market is softening for both single- and multi-family units. They note that rising inventory in the for-sale housing market is helping to rebalance the rental market as potential buyers have increased power to negotiate, which reduces pressure on rents.
According to Zillow, the U.S. metro areas where buyers hold the most power at the moment are concentrated in the southern U.S. These cities include:
- Jackson, Tennessee
- Beaumont, Texas
- Macon, Georgia
- Gulfport, Mississippi
- Longview, Texas
- Brownsville, Texas
- Daphne, Alabama
- Naples, Florida
- Punta Gorda, Florida
- Cape Coral, Florida
Of course, when looking for a home, buyers should consider insurance costs in the area as they can vary wildly across the U.S. NerdWallet reports that the most expensive state for homeowners coverage in 2025 is Oklahoma, where premiums average $6,210 per year. Texas has the second-highest rates at an average of $4,585 annually, followed by Nebraska ($4,505), Colorado ($4,175) and Kansas ($3,735).
Hawaii boasts the lowest homeowners premiums at an average of $610 per year, followed by Vermont at $950 per year. Delaware, Alaska and Maine round out the top five states for lowest homeowners premiums with rates hovering around $1,000 per year.
In the slideshow above, we’ll look at Zillow’s ranking of metro areas where home sellers have the most power this summer.
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