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Zillow Home Value Index: 'Real' Home Values Continue To Decline

Seeking Alpha
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⚡ Quantum Brief
December 2025 data from the Zillow Home Value Index shows nominal home prices rose, but inflation-adjusted values fell to their lowest point in nearly five years. The decline in real home values reflects persistent inflation outpacing nominal price growth, marking a prolonged affordability crisis in the housing market. Zillow’s index (ZHVI) claims methodological advantages over the Case-Shiller index, citing broader geographic coverage and faster data updates. The report underscores a disconnect between headline price trends and actual purchasing power, signaling potential long-term market instability. Analysts warn the trend could deter buyers, exacerbating housing supply constraints amid economic uncertainty.
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Advisor Perspectives Charts6.57K FollowersFollow5ShareSavePlay(6min)CommentsSummaryHome values continued to trend higher in December, according to the Zillow Home Value Index.After adjusting for inflation, real home values continued to decline, remaining at their lowest level in nearly five years.Zillow believes its ZHVI has distinct advantages over the Case-Shiller index. PM Images/DigitalVision via Getty Images Zillow, the real estate listing and brokerage website, provides a wealth of publicly available real estate data. Among these, the Zillow Home Value Index (ZHVI) offers a seasonally adjusted measure of home values and marketThis article was written byAdvisor Perspectives Charts6.57K FollowersFollowAdvisor Perspectives is a leading interactive publisher for Registered Investment Advisors. Our AP Charts & Analysis portion of our website analyzes economic and market trends.

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