2026 Housing Market: Why Affordability Is Finally Improving

Curious what the housing market will look like in 2026? You’re not alone. For the past few years, affordability has been the biggest roadblock for buyers—and a source of hesitation for sellers. The good news? Things are finally starting to improve.

In 2025, affordability reached its best level in three years, and experts expect the trend to continue into 2026. The main factors driving this shift? Mortgage rates, inventory, and home prices.

Mortgage Rates Are More Favorable

Mortgage rates have already fallen from last year’s highs—by nearly a full percentage point in some cases. That might not sound dramatic, but it can make a huge difference for buyers and sellers.

Experts predict rates will stay in the low 6% range through 2026. While future changes depend on the economy, the job market, and Fed policy, the key takeaway is that rates are already lower than last year, giving buyers more room to plan their next move.

• Buyers: Lower rates mean smaller monthly payments and more purchasing power—opening doors to homes that were previously out of reach.

• Sellers: Rates in the 6% range may be the new normal, but with the right pricing strategy, moving your home is still very doable.

  
  

Inventory Is Improving

In 2025, the number of homes for sale increased by roughly 15%, giving buyers more choices, more time to decide, and stronger negotiating power.

Experts forecast continued growth in 2026, with Realtor.com predicting an 8.9% rise in available homes.

• Buyers: More homes to choose from and greater leverage at the negotiating table.

• Sellers: Correctly pricing your home will be critical to attracting buyers.

Home Price Growth Is Slowing

With more inventory, upward pressure on prices is easing. Experts predict moderate national price growth of about 1.6% in 2026.

Keep in mind: local markets will vary. Some areas may see slightly higher growth, others may dip. A local agent can give you the clearest picture.

• Buyers: Slower price growth allows for easier budgeting and fewer surprises.

• Sellers: Moderate growth protects equity while helping restore market balance.

  
  

More Homes Are Likely to Sell

All of this combines to make housing more affordable in 2026, which could lead to more homes selling and more people making moves.

The bottom line? More buyers can act, and sellers can move with confidence. The question is: will you be one of them?

Affordability won’t shift overnight, but trends point to a more balanced, predictable market in 2026—with breathing room for both buyers and sellers. Want to see what this means for your local market? Connect with a real estate agent today to explore your options.