Great Housing Reset: 2026 Prediction
Update: 2025-12-26
Description
Next year, the U.S. housing market could see a significant shift, marking a potential turning point after years of stagnation. Economists predict a Great Housing Reset in 2026, with even a slight increase in home sales feeling like a breakthrough. The market has been sluggish due to high borrowing costs and sky-high prices, but as mortgage rates over six percent become more common, more homeowners are expected to sell, boosting inventory and easing pressure. While prices wont crash, theyre likely to rise just half a percent in 2026, essentially flat. Building more homes is the long-term solution, but the country lags behind. Mortgage rates have dipped recently, and renters got a break with flat rents year-over-year in October. The Trump administration promises housing reforms to boost affordability, but details are scarce. As inventory grows and rates stabilize, the market is poised to thaw and move forward.
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