2026: Home Prices Stay Affordable Amid Slower Growth

Home price growth in 2026 is expected to slow to 1.2%, below inflation, effectively declining in real terms. Existing-home sales are forecasted at 4.10 million, a slight increase from 2025 but lower than earlier predictions. Mortgage rates remain high around 6.3% due to inflation and geopolitical tensions. Rental prices are projected to fall 1.2% as supply increases. Homeownership rates are improving, while homebuilding slows in some regions amid ongoing supply deficits.