Expect lower mortgage rates but a relatively tough yet stable housing market in the Houston region this year.

Why it matters: The fate of the housing market is tied to factors both national (like interest rates) and local (housing inventory) — and homeownership remains part of the American dream that remains unaffordable for many.

The big picture: Redfin projects 30-year fixed rates will average 6.3%, dipping from 6.6% in 2025 while staying well above pandemic-era levels.

• "A lot of the challenges that the housing market has been grappling with — 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.

Zoom in: Houston Association of Realtors Chair Theresa Hill tells Axios that sales are expected to be consistent, on track for how the market behaved last year.

• There continues to be a "steady demand" for single-family homes, and sellers are "coming to the realization that they may have to do some modest price adjustments because of the rising inventory levels."

Flashback: Houston-area single-family home sales rose 3.8% year over year in 2025, from 85,373 sales in 2024 to 88,634, according to the HAR full-year report.

• The median home price was flat year over year at around $335,000.

Stunning stat: Inventory in the Houston region surged to a record high in July, with 39,490 active listings and 5.5 months of supply — the highest since 2012.

What they're saying: Hill says the region is more balanced and has "returned to more pre-pandemic conditions," giving buyers more options and forcing sellers to be more flexible on pricing.

Yes, but: Homes sold for about 94% of the list price on average last year, Hill says. The era of bidding wars has faded in many neighborhoods.

Homes are generally selling faster in the Midwest and Northeast and slower in the South — another sign of a split U.S. housing market.

The big picture: In parts of the South where builders have cranked out new homes, prices have eased and buyers have gained room to negotiate.

Zoom in: The time it took to sell a Houston-area home increased from 59 days this time last year to 64 days in December, which is the highest since February 2020, when homes spent an average of 68 days on the market, per the Houston Association of Realtors.

• This is also in part because of the expanded inventory in Houston. The months of home inventory expanded from a 4-month supply in December 2024 to 4.5 months in December 2025.

What we're watching: Nationally, homes are changing hands at record low rates (and usually take longer to sell in the colder months).

• Roughly 70% of homes for sale in October sat on the market for at least 60 days, long enough to go "stale," according to Redfin.
• Many sellers are now pulling their listings rather than cutting prices.

🏈 The Texans lost to the New England Patriots 28-16 on Sunday, ending their season and playoff run. (Houston Public Media)

🎤 Tickets for seven Houston Rodeo concerts, including Kelly Clarkson and Creed, sold out in under 30 minutes, highlighting huge local demand. (Houston Chronicle)

📵 City Council member Abbie Kamin said her district has spent tens of thousands of dollars on emergency drones to share information when cell service is down. (Chron)

Get ready for more at-home wellness perks, nostalgic design nods and eco-friendly upgrades, according to industry pros.

Why it matters: These trends indicate what American homes may look like in 2026.

State of play: "Wellness features" are now being mentioned 33% more often in Zillow listings compared to a year ago, per the real estate site's 2026 Home Trends Report.

Meanwhile, "traditional" and Art Deco styles are back — part of a bigger retro revival, according to Houzz, a design and remodeling site.

• Think: Curves, arches and scalloped edges throughout the home, detailed woodwork, and earth tones reminiscent of the English countryside and modern Tudors.
• Plus, opulent marble and mirrored surfaces, metallic accents and jewel tones inspired by the 1920s and 1930s.

Sustainability is also in demand.

• Mentions jumped on Zillow for certain energy-efficient homes (+70%), whole-home batteries (+40%) and EV charging (+25%), suggesting buyers want "eco-conscious living options that save them money and reduce their environmental impact," per the report.

If decluttering is your New Year's resolution, don't skip your bedroom — even if no one else sees it.

Why it matters: "When you don't make your own space a priority, it leads to feelings of stress, overwhelm, and a lack of control that you carry with you throughout your day," write authors Meg DeLong and Ea Fuqua of "Tidying Up."

To tidy up where you get ready, DeLong and Fuqua, co-founders of a Nashville-based organizing company, recommend these daily tasks:

• Make your bed.
• Clear your nightstand of clutter.
• Put away your clothes.
• Wipe down and organize your vanity. (They suggest storing your most-used products in a top drawer.)
• Pick up items left on the floor.
• Turn on a fan or crack a window.

The bottom line: "Creating a peaceful, organized bedroom isn't just about aesthetics. It's about setting the tone for both your day and night," DeLong and Fuqua write.