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2026 Housing Market: Prices Drop, Roommates Rise

12/4/2025

Center

Housing Market Reset

In 2026, the U.S. housing market is set to shift as home prices decline in 22 cities, with mortgage rates near 6.3%.
Realtor.com forecasts a balanced market, with existing-home sales near 4.13 million.
Redfin projects a 1% rise in home prices, aided by 4% wage growth.
The market may see a "Great Housing Reset" that improves affordability, while younger Americans face challenges leading to more roommates and delayed family planning.

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Rochester Home Value Surge

Rochester, New York home values have risen 75 percent since 2019, making it the seventh-fastest-appreciating U.S. market.
The surge benefits current homeowners and presents challenges for first-time buyers amid intense competition and limited inventory.
The median age of first-time buyers has risen to 40, with 21 percent of purchases from them.
Experts say government intervention, including builder tax incentives and down payment assistance, could ease market for new buyers.

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Housing Market Reset

In 2026, the U.S. housing market is set to shift as home prices decline in 22 cities, with mortgage rates near 6.3%.
Realtor.com forecasts a balanced market, with existing-home sales near 4.13 million.
Redfin projects a 1% rise in home prices, aided by 4% wage growth.
The market may see a "Great Housing Reset" that improves affordability, while younger Americans face challenges leading to more roommates and delayed family planning.

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