What Experts Say About Home Affordability in 2026

Curious about what the housing market might look like in 2026? You’re definitely not alone. For a long time, buying or selling a home felt out of reach for many people because prices and rates were just too high. A lot of folks have been waiting and hoping things would improve. The good news is—they finally are.

In 2025, buying a home became more affordable than it had been in the past three years. And experts believe that trend will continue into 2026. Their outlook is based on three main things that shape the market: mortgage rates, the number of homes for sale, and home prices.

Mortgage Rates Have Come Down

Mortgage rates are already lower than they were at their highest point. Over the last year, they dropped by close to one full percentage point. That may not sound huge, but it makes a real difference for monthly payments.

So, should you wait for rates to fall even more? Most experts say rates are expected to stay fairly steady in the low 6% range throughout 2026. Where they go next will depend on the economy, jobs, and decisions made by the Federal Reserve. What matters most is this: rates are lower than they were last year, which can be helpful if you’re planning a move in 2026.

• For buyers: Lower rates mean lower monthly payments and more buying power. Homes that once felt out of reach may now be possible.

• For sellers: Rates in the 6% range may be here to stay. If you need to sell, your home equity can still make a move doable.

More Homes Are Hitting the Market

In 2025, the number of homes for sale increased by about 15%. This gave buyers something they hadn’t had in a while—more choices, more time, and more room to negotiate. That helped bring the market closer to balance.

More homes for sale also helped slow price increases, which improved affordability. While inventory may not grow as fast this year, experts at Realtor.com expect the number of homes for sale to rise by nearly 9% in 2026.

• For buyers: More homes means more options and a better chance to negotiate.

• For sellers: Pricing your home correctly will matter more than ever to attract buyers.

Home Prices Are Rising More Slowly

With more homes available, prices aren’t climbing as fast as they once were. Over the past year, price growth has cooled, and experts expect that trend to continue. Most predict home prices will still go up in 2026—but only by about 1.6% on average.

That’s reassuring if you’ve seen headlines or social posts claiming prices will crash. A big drop isn’t what experts expect. Still, every market is different. Some areas may see higher price growth, while others may see prices level off or dip slightly.

That’s why working with a local real estate agent matters. They can explain what’s really happening in your specific area.

But overall, prices will continue to rise at the national level. And that’s good for the market as a whole. As Realtor.com explains:

“For homebuyers and sellers, the shift signals a more balanced market—one where price growth steadies, rate relief offers breathing room, and negotiating power tilts subtly toward buyers.”

• For buyers: Slower price growth means fewer surprises and easier planning.

• For sellers: Prices rising at a steady pace helps protect your equity while keeping the market healthy.

More People Will Be Able to Buy and Sell

When you put all of this together—lower rates, more homes for sale, and steadier prices—it adds up to better affordability in 2026. That’s why experts expect more homes to sell this year.

As Zillow’s Chief Economist explains, buyers benefit from more choices and better affordability, while sellers see stable prices and steady demand. Both sides get a little more breathing room.

The Bottom Line

Affordability won’t improve overnight. But with these trends working together, the housing market should continue to feel more balanced and predictable as 2026 moves forward.

For many people, this may be the best opportunity they’ve had in years to make a move. The market is opening the door—now the question is whether you’re ready to walk through it.