As the predictions for 2026 roll in Realtor.com says to expect a steadier housing market, with some caveats. They say mortgage rates are forecast to average 6.3%, easing affordability pressures slightly, while home prices will rise modestly by 2.2%. Existing-home sales should climb about 1.7% to 4.13 million. In addition, for-sale inventory will continue to recover, up nearly 9% year over year.
For homebuyers and sellers, the shift signals a more balanced market—one where price growth steadies, rate relief offers breathing room, and negotiating power tilts subtly toward buyers. Housing affordability improves as incomes outpace inflation, pushing the typical payment share of income below 30% for the first time since 2022.
Renters are likely to see continued relief from declining rents in 2026, as a robust multifamily construction pipeline adds to rental supply and helps drive rents down. With more new units entering the market, vacancy rates are expected to approach—or even exceed—the long-term average of 7.2% observed between 2013 and 2019 by the end of 2026.
Click here to read the full report at Realtor.com.
