Housing predictions for the country

Real estate experts expect the national housing market to stay tough this year but with lower mortgage rates than last year.

Why it matters: Homes remain unaffordable for many Americans, especially younger people.

The big picture: High housing costs may be reshaping American households, with smaller family units, more adult children living with their parents, and friends buying homes together.

What we're watching: Nationally, wages are expected to grow faster than home prices, which will rise another 1% in 2026, per a Redfin forecast.

• Redfin projects 30-year fixed rates will average 6.3% this year, below 6.6% in 2025 but still well above pandemic-era levels.
• First-time buyers will likely have limited options again this year, real estate experts tell Axios.

The bottom line: "The lack of affordability and the 'lock-in effect' on existing homeowners — are still going to be present in 2026, but the grip is kind of loosening," Realtor.com chief economist Danielle Hale tells Axios.