U.S. housing affordability to improve says economist

National home prices are expected to stay mostly steady in 2026 as the housing market enters a new phase of moderate adjustment. After years of rising prices and sluggish sales, conditions are shifting: sales are beginning to increase while prices remain capped and incomes are growing faster than home costs, improving overall affordability. This gradual change suggests a more balanced market, with buyers able to engage without the extreme pressures seen in previous years.

Part of this adjustment is driven by changes in listings, as many homeowners have temporarily withdrawn their properties, creating a “shadow demand” of roughly 150,000 potential sellers who could enter the market. Regional differences are emerging, with Florida showing stronger sales growth, while areas like the New York tri-state and Chicago remain slower due to limited inventory. Mortgage rates are expected to hold around the low-6% range, with even slight decreases potentially boosting transactions. Overall, 2026 may see more active participation from buyers and sellers amid stable prices and slowly expanding inventory.