Three key trends could offer modest relief in 2026 to buyers hoping to find more affordable homes.
In its annual housing forecast, Realtor.com reports that this year should offer a steadier housing market than in 2026, even if “it’s not yet off to the races.”
In particular, three trends Realtor.com highlights could make homes slightly more affordable for homebuyers weary from seeing prices shoot up over the past several years.
The three factors that could make homes a bit more economical include:
1. Home prices are climbing, but not in real terms
Home prices are expected to rise 2.2% in 2026, following a 2% increase in 2025. However, with inflation projected above 3%, real home prices will actually decline for the second straight year.
In addition, incomes are rising faster, meaning homes consume less of each paycheck. This gradual normalization helps buyer incomes catch up to housing costs.
2. Mortgage rates are steady
After hovering higher through most of 2025, mortgage rates dropped to the low 6% range in the second half and are expected to average 6.3% throughout 2026 — down from 6.6% in 2025. The typical monthly payment for a median-priced home will fall 1.3% year over year, marking the first annual decline since 2020.
Combined with rising incomes outpacing inflation, monthly payments should drop to 29.3% of median income. That would see payments drop below the 30% affordability threshold for the first time since 2022.
If you’re considering taking out a mortgage soon, be sure to shop around by seeking rate quotes from multiple providers. Some companies, such as Rocket Mortgage, are known for offering more competitive rates than others.
3. For-sale inventory continues to outpace sales
Active listings are projected to increase 8.9% in 2026, the third consecutive year of gains, although growth is slowing as the market approaches pre-pandemic norms.
By year’s end, inventory should remain about 12% below pre-2020 levels, improving from a 19% gap in 2025. When supply grows faster than sales, the market tilts toward buyers, offering better negotiating power despite ongoing affordability challenges.
Buyers still need to work to find deals
All of these trends could help buyers to find more success in landing bargains as they shop for homes during 2026. But it would be a mistake to overstate the improvements.
While the market may tip modestly in favor of buyers, it’s still important to do your homework if you want to land a good deal. There is no substitute for educating yourself about the market and your own finances before you begin to hunt for a home.
If you plan to shop for a home during 2026, make sure to check out “10 Insider Tips for Getting a Great Deal on a House.”
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