Forecast Predicts Market Will Steady More in 2026 for Sellers, Renters

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Realtor.com, Austin, Texas, released a 2026 forecast, predicting a market that will look more balanced.

But, challenges aren’t completely in the rear-view mirror yet.

The report predicts mortgage rates will average 6.3%–on the low end of this year’s range of 6.3-6.6%, but still above pre-pandemic levels. Home prices are forecasted to rise by 2.2%, around in line with 2025’s numbers. However, inflation is expected to outpace those gains–it’s pegged at 3%. That means that inflation-adjusted home prices will decline slightly, as they did in 2025.

The firm posits existing sales will climb 1.7%, by 4.13 million. While that’s a small increase, it pulls the market up from the near 30-year low anticipated this year.

For-sale inventory will grow by 8.9%, the report predicts, and starts will increase by 3.1%, or 1 million homes.

Realtor.com also anticipates rent will fall 1%. Vacancy rates are expected to approach or potentially exceed the long-term average of 7.2% from the pre-pandemic era.

“After a challenging period for buyers, sellers and renters, 2026 should offer a welcome, if modest, step toward a healthier housing market,” said Danielle Hale, chief economist at Realtor.com. “Incomes climbing faster than inflation as mortgage rates steady at a lower level create space for affordability to improve. Declining rental prices will continue to give renters more relief from pandemic highs. It’s not a dramatic reset, but it’s a meaningful shift that moves the market back toward balance.”