Young, prospective homeowners are projected to be more likely to purchase a home in 2026.
It is no secret that 2025 has been a rough year for the housing market. Elevated mortgage rates, price increases and reluctance to sell created uncertainty within the market; however, experts predict record sale highs since the pandemic in 2020.
Predictions for the coming year
According to a REMAX survey reported on by Real Estate News, “88% of those in the market for a new home are likely to buy in 2026.”
With mortgage rates on a steady decrease after the post-pandemic spike, prospective buyers are tired of waiting until the best time to buy. Lawrence Yun, chief economist at the National Association of Realtors, forecasts the steady decline of rates to be substantial enough for buyers to make moves. He predicts an average of 6% in 2026, according to The National Association of Realtors.
The priorities of homeowners are shifting as well, with younger people being willing to pay more in order to be in safe neighborhoods. Older generations are looking for affordability as their main priority – something that is less attainable in the current market.
As seen through trends in the past four years, repeat buyers are dominating the market, buying second and third investment properties. This has been an issue for other potential buyers, as the properties that are affordable for an average family are being bought, renovated and sold.
Why the market is expected to shift
In an article regarding the market change, Business Insider explained that during the pandemic, there was a surge of home purchases because mortgage rates were low compounded by the fact that families needed more space in their homes.
Stimulus checks, low rates and boredom caused a boom in home sales from 2020-2021.
Families are recorded to stay in their homes for an average of ten years, and with the pandemic being five years ago, it is gearing up to be time for homeowners to start selling. Business Insider explained that “it’s not going to be a drastic change; it’ll just be more of a loosening of the market.”
At this point, homes have been on the market at record-high prices for so long that they are beginning to decrease in price, slowly. Redfin’s chief economist, Daryl Fairweather, told Business Insider that there is not going to be a boom in the market within the next year, it will be more of a “normalization.” Fairweather explained that wages have increased in the past few years, lending families to be able to afford homes that are still on the higher end of average priced.
What this means for the future of housing costs
After the pandemic, the shortage of housing was exacerbated by the amount of homes being purchased. Another small surge in home buying will add to the lack of housing around the United States.
Positively, the housing market contributes to the United States’ Gross General Product (GDP), so a market increase will boost economic growth. In addition, communities will grow with the purchasing of homes. Young families are reaching out for community, and being able to live in a home that allows access to neighborhoods and other homeowners will help provide stability.
