Press release
Realtor.com® 2026 Housing Forecast: Housing Market Remains Balanced as Supply and Demand Find Firmer Footing
Modest gains in sales, prices, inventory, as well as declining rents, point to more balanced market dynamics, while incomes and easing mortgage rates lift
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[{"type":"text","content":"Modest gains in sales, prices, inventory, as well as declining rents, point to more balanced market dynamics, while incomes and easing mortgage rates lift affordabilityAUSTIN, Texas, Dec. 3, 2025 /PRNewswire/ -- Realtor.com® today released its 2026 Housing Forecast, which predicts a market steadying — carefully, after several years defined by affordability strain, limited inventory, and a sharp slowdown in activity. Buyer conditions will improve gradually as mortgage rates ease, incomes rise, and more homes continue to come onto the market. Still, the recovery is expected to be slow, with existing-home sales remaining well below normal and broader political dynamics and economic risks leaving the outlook somewhat fragile. See table below for individual metro sales and price forecasts. \nRealtor.com® forecasts that the average 30-year mortgage rate will hold near 6.3% in 2026, down slightly from 2025's 6.6% average. That rate relief, paired with steady income growth, should help ease the affordability crunch and bring the typical mortgage payment share of income down to 29.3%—the first time since 2022 that this key measure drops below the 30% affordability threshold. Moreover, rent prices will continue their decline rounding out 2026 at -1%.Home prices are expected to rise 2.2%, adding to the 2.0% gain seen in 2025. But because inflation is projected to rise at a faster pace, real (inflation-adjusted) home prices will decline for the second consecutive year, offering additional breathing room for buyers even if nominal prices continue inching higher.\"After a challenging period for buyers, sellers and renters, 2026 should offer a welcome, if modest, step toward a healthier housing market,\" said Danielle Hale, chief economist at Realtor.com®. \"Incomes climbing faster than inflation as mortgage rates steady at a lower level create space for affordability to improve. Declining rental prices will continue to give renters more relief from pandemic highs. It's not a dramatic reset, but it's a meaningful shift that moves the market back toward balance.\"Realtor.com® forecasts in 2026 buyers and sellers can expect:Average 30-year mortgage rates of 6.3%, after higher than expected interest rates in most of 2025, mortgage rates finally relaxed in the second half of the year. We expect mortgage rates to remain roughly in this range throug...