Redfin: The Great “Reset” Starts in 2026
Summary
According to a Redfin report, the housing market is entering a "reset" phase in 2026, with affordability slowly improving due to stagnant home prices and rising wages. While mortgage rates are expected to stay relatively stable, sales volume is only expected to increase slightly. Hosts should keep an eye on these market trends as they impact potential occupancy and revenue.
Key Insights
- •Existing home sales are forecasted to increase slightly, from 4.1 million to 4.2 million next year. This is still a low number historically.
- •Mortgage rates are expected to remain in the low sixes (6.2-6.3%) and are unlikely to drop to the fives or increase to 7% in the near future.
- •Home buying affordability is expected to improve as wages grow faster than home prices, a trend that is already emerging in the second half of 2025. This may be a slow process, taking 5-6 years to be noticeable.
Action Items
- ✓Monitor local market trends regarding home prices and wage growth to understand the potential impact on your STR business's profitability.Effort: lowImpact: medium
Tools & Resources
- →Redfin: Redfin's annual predictions report.
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