After more than two years of stiff competition and fast-rising prices, the U.S. residential housing market experienced a rapid cooldown throughout the latter half of 2022 and the early months of 2023. Subsequently, after a turbulent few years of price surges, rapid cooldowns, and fluctuating mortgage rates, the U.S. housing market is entering 2026 with a new set of dynamics.
Driven by persistently elevated mortgage rates and widespread inflation, residential real estate demand has stagnated in many parts of the country. Affordability remains a major hurdle, especially for first-time buyers contending with high borrowing costs and limited supply in the entry-level segment—challenges that have prompted some markets to focus on expanding access to more affordable housing options. As we move into the prime spring and summer selling seasons, real estate activity will be top of mind, with certain metro areas emerging as particularly hot markets due to strong job growth, demographic shifts, and continued demand for housing.
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