Economists at Zillow® expect 2026 to bring steadier footing to the housing market as affordability improves and the ways Americans want to live continue to evolve.

On the heels of a year of small wins for home buyers — slight affordability gains and buyer-friendly markets in 19 major metro areas — home buyers and sellers can expect a modest rise in home values, a few more sales and mortgage rates holding above 6%. Many apartment renters should look forward to some affordability relief; however, those in New York City should not.

“The housing market is finally settling into a healthier state, with buyers and sellers starting to return,” said Mischa Fisher, chief economist at Zillow. “Buyers are benefiting from more inventory and improved affordability, while sellers are seeing

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