Insights from Housing Economists on the 2026 Real Estate Landscape

January 6, 2026 - 05:26

As we look ahead to 2026, housing economists are closely monitoring a variety of factors that are poised to influence the real estate market. Key among these are mortgage rates, which have a significant impact on home affordability and buyer demand. Fluctuations in these rates can either stimulate or dampen the housing market, making it a critical area of focus for industry professionals.

Another important element is housing inventory. A shortage of available homes has been a persistent issue, driving prices upward and creating challenges for potential buyers. Economists are analyzing trends in new construction and existing home sales to gauge how inventory levels may shift in the coming years.

Demographic changes also play a crucial role in shaping the housing market. As millennials and Gen Z enter the home-buying phase, their preferences and financial capabilities will influence demand. Furthermore, regional shifts, driven by factors such as remote work and urban-to-suburban migration, are expected to create diverse market conditions across different areas.

Overall, housing economists are preparing for a dynamic and evolving landscape, with multiple forces at play that will determine the trajectory of the real estate market in 2026.