Housing Affordability: A Glimmer of Hope in 2026
Update: 2025-12-13
Description
Experts predict a slight improvement in housing affordability in 2026, with lower mortgage rates and slower home price increases. This could encourage more buyers and sellers, potentially leading to the first significant gain in home sales since 2023. However, many will still find homeownership unattainable, and a market crash is not expected. Affordability gains will likely come from lower mortgage rates and home price increases below wage growth. Some markets, particularly in the Southeast and Mountain West, are already seeing home prices fall.
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