2026 Housing Outlook
The housing market will continue to face several headwinds in 2026, including economic policy uncertainty, a softening labor market and ongoing affordability problems. According to economists speaking at the International Builders’ Show in Orlando, Fla. on Feb. 17, 2026, easing financial conditions led by an anticipated modest reduction in mortgage rates should help to somewhat offset these market challenges and support production and sales.
“The housing outlook in 2026 is one of cautious optimism as builders contend with rising material and labor prices and policy uncertainty, while builders and buyers alike should benefit from anticipated fiscal and monetary easing that will moderate housing finance costs and mortgage rates,” said Robert Dietz, chief economist of the National Association of Home Builders (NAHB).
