The typical U.S. home was worth $364,812 in October, down 0.6% from September, Zillow says in its monthly market report, though still 0.7% above a year earlier. Over the same stretch, the share of a median household’s income that a typical mortgage payment takes rose to 34.7% from 32.7% a year ago. The price on paper barely moved. What it costs to carry the house did.
For owners, the $364,812 is a reference point for what a house like theirs might fetch. For would-be buyers, the 34.7% is the test of whether a purchase fits a budget. Zillow says a median-income household would need to spend that share of its income on the typical monthly mortgage payment, assuming a typically valued home, a 20% down payment, and estimates for taxes, maintenance and insurance.
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Is $364,812 a drop or a pause?
Closer to a pause. Zillow’s September report put the typical value at $366,913, up 1% from a year earlier. October’s reading is 0.6% under September on Zillow’s current series, and 0.7% above last October, so the year-over-year gain has cooled but not turned negative.
A month-to-month dip of 0.6% on a $365,000 home is a few thousand dollars on paper. It is small next to what happened to the monthly bill, which is why the affordability measure moved so much more than the value did.
Why does the payment share keep climbing if prices are flat?
Because the loan got more expensive. The 34.7% compares with 33.5% in September and 32.7% a year ago, so the share rose 1.2 points in one month and 2 points over the year. Zillow says the typical monthly payment reached $2,004, up 12.8% from a year earlier, and that figure leaves out taxes and insurance.
Zillow’s report cites Freddie Mac data showing mortgage rates averaging 7.33% in October, up from 6.86% in September. Freddie Mac’s weekly reading on Nov. 5 was 7.18%, compared with 6.22% a year earlier.
Zillow’s September report shows how fast that moved. It put the typical payment at $1,922, up 6.7% from a year earlier, while the October report has the year-over-year increase at 12.8%. The pace of increase roughly doubled in a month while the value of the house barely changed.
Renting looks different. Zillow says rent takes 26% of a median household’s income, unchanged from both a year earlier and September. The gap between 26% and 34.7% is the distance a household has to cover to move from a lease to a mortgage.
Where did values move the most?
The national number hides wide swings. In Zillow’s metro table, 20 of the 50 metros show a typical value below last year’s. The deepest declines are in Austin, where the typical home is worth $410,026, down 3.9%, and Seattle, at $711,435, down 3.2%. Las Vegas is down 2.7%, Denver 2.1% and San Antonio 2%.
The gains cluster elsewhere. Chicago’s typical home is worth $357,746, up 4.8% on the year, followed by Hartford, up 4.7%, Milwaukee, up 4.2%, and New York, up 4% to $730,894. Cleveland and San Francisco are each up 3.5%, and San Francisco’s typical value is $1,133,992.
Two markets with almost the same price tag are going in opposite directions. Chicago’s $357,746 sits next to Tampa’s $356,627, which is down 0.4%. Dallas, at $355,891, is down 1.9%. A buyer comparing three similarly priced metros would find one rising fast, one flat and one sliding.
Sacramento and New Orleans are flat at 0%. San Jose, the priciest market in the table at $1,537,924, is down 1%, and Miami, at $480,084, is up 1.2%.
Are values keeping up with rents?
Not lately. Zillow’s typical rent was $1,913, up 2.9% from a year earlier and the strongest annual gain in 19 months, against 0.7% for the typical home value. On Zillow’s typical-home measures, the cost of renting is climbing faster than the price of owning.
That gap is part of why the payment share, not the price, is the number to watch. A house that costs about the same as it did last year costs a buyer more each month, while a lease costs the same share of income it did a year ago.
What does Zillow tell buyers now?
Mischa Fisher, Zillow’s chief economist, says the “acute sting of suddenly higher mortgage rates” is weighing on the housing market. He also says “there are deals to be had for buyers able to brave the affordability headwinds in the coming months.” About 26.5% of listings carried a price cut in October, down from 26.9% a year earlier.
Fisher also says the continued buildup of inventory means “there is a lot of upside for sales into next year if we get rate relief.” About 1.4 million homes were for sale, with active inventory up 3.4% from a year earlier, according to the report.
The figures describe a typical home and a median-income household. A particular house, with its own assessment, insurance bill and repair list, can cost far more or less than the typical figure to keep, and that carrying cost sits inside the 34.7%.
What does your own house cost you to keep?
Zillow’s 34.7% counts taxes, maintenance and insurance, and those are the lines a homeowner can still change after the mortgage is signed. An insurance bill that was never shopped, or a property card with an error, keeps that share higher than it has to be.
Cut Your House Costs includes a lower home insurance bill by shopping and asking for every discount, and its guide covers mistakes on a property card that raise a home’s assessed value every year. It is 11 pages, with a home-cost audit worksheet and a 60-second scan up front.
Get the guide to a lower home insurance bill and a cleaner property card →
This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
