Expert Forecasts Show Housing Affordability Improving in 2026

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If you’ve been wondering whether 2026 is finally the year affordability improves, you’re not alone. For the past few years, rising mortgage rates and limited inventory made buying or selling feel out of reach for many. The good news? Experts agree the market is shifting in a more balanced direction, and housing affordability is improving in 2026.

In fact, 2025 marked the best affordability conditions in three years, and momentum is expected to continue into 2026. This outlook is driven by three key factors shaping the housing market: mortgage rates, housing inventory, and home price growth.

Housing Affordability Improving in 2026 Starts With Mortgage Rates

Mortgage rates have already come down from their peak, dropping nearly a full percentage point over the past year. While that may sound modest, it makes a meaningful difference in monthly payments and overall buying power.

Most forecasts suggest rates will hover in the low-6% range throughout 2026. Where they go next will depend on economic conditions, job growth, and future decisions by the Federal Reserve. The key takeaway? Rates are already lower than they were a year ago, and that creates opportunity.

For buyers: Lower rates help stretch buying power and reduce monthly costs.For sellers: Rates in the 6% range appear to be the new normal, and strong equity positions are helping many sellers make moves confidently.

More Inventory Means More Options

Housing inventory made a noticeable comeback in 2025, rising by about 15%. That shift gave buyers something they hadn’t had in years: more choices, more time, and more negotiating power. It also helped slow the rapid pace of price growth.

Looking ahead, experts at Realtor.com project inventory will grow by another 8.9% in 2026.

For buyers: More homes on the market means better selection and leverage.For sellers: Strategic pricing matters more than ever to attract serious buyers.

Home Prices Are Rising — Just More Slowly

With more homes available, price growth is cooling to a healthier pace. While some headlines suggest prices could fall dramatically, most economists disagree.

Nationally, experts forecast home prices will rise about 1.6% in 2026. That’s slower than previous years, but still positive, and far more sustainable.

Local markets will vary. Some areas may see stronger appreciation, while others may experience slight price adjustments. That’s why local insight is critical when making decisions.

As Zillow explains, this shift points to a market with steadier pricing, improved affordability, and more balanced negotiating power.

More Homes Are Expected to Sell in 2026

When lower rates, rising inventory, and slower price growth come together, affordability improves, and more people are able to move forward. That’s why economists expect home sales activity to increase in 2026.

Buyers gain breathing room. Sellers benefit from price stability and consistent demand. The market becomes more predictable, something we haven’t seen in years.

Bottom Line

Housing affordability won’t change overnight, but the trend is clear. In 2026, buyers and sellers should experience more balance, more options, and more confidence than they’ve had in quite some time.

If you’re thinking about making a move, this could be the window you’ve been waiting for.

📩 Contact me at TessMarquez.com | (626) 712-5156 or call/text anytime!

By Tess Marquez, Realtor & Probate Specialist | TessMarquez.com