Real Estate Experts: ‘New Era’ for Housing Is Coming
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America’s housing market could begin to loosen up in 2026 after several years of high prices and slow sales. Major real-estate firms see next year as a turning point. Redfin has dubbed 2026 the “Great Housing Reset,” while Compass describes it as the start of a “new era” marked by more homes for sale and an uptick in transactions, according to CNN.
Analysts expect this shift to coincide with President Trump’s pledge to roll out what he calls the most aggressive housing reform plans in U.S. history. Still, many economists argue that broader market forces—rather than government policy—will be the main drivers of change.
Home prices have surged nearly 55% nationwide since early 2020, according to the National Association of Home Builders, fueled by strong demand, limited supply, and homeowners holding onto ultra-low mortgage rates secured during the pandemic. Compass chief economist Mike Simonsen believes more owners will eventually accept mortgage rates above 6% and decide to sell, helping ease the inventory shortage.
“The housing market is likely to remain in buyer’s market territory for the foreseeable future, with sellers cutting prices or offering concessions to attract buyers,” Redfin economist Asad Khan told TheStreet. However, Simonsen does not expect a major price correction. His forecast predicts home prices will rise about 0.5% in 2026—essentially flat, CNN reports.
Affordability is expected to remain a challenge for many buyers unless home construction significantly increases, an area Simonsen says continues to lag far behind demand. Mortgage rates, currently averaging around 6.18% for a 30-year fixed loan, are projected to stay above 6% next year unless inflation cools or the job market weakens.
Consumer confidence could also play a key role. Jason Waugh of Coldwell Banker Affiliates notes that buyers may hesitate to take on long-term debt if they feel uncertain about their income or job stability.
Renters, meanwhile, saw relief from rising rents in 2025, but that pause may be temporary. Redfin projects rents will climb again by late 2026, increasing 2% to 3% year over year as many households remain unable to afford homeownership.
Specific details of the Trump administration’s housing agenda have yet to be finalized. National Economic Council Director Kevin Hassett has pointed to regulatory reforms aimed at speeding up construction approvals and offering incentives to states that relax building restrictions. The White House has also floated ideas such as 50-year mortgages and portable loans, though analysts like TD Cowen’s Jaret Sieberg question whether such proposals will move forward in the near term, citing limits on how quickly any administration can reshape the housing market.
For buyers ready to start searching, Realtor.com has released a list of the best housing markets across the United States.
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