2026 Housing Reset: Slower Rent Hikes, Steady Prices and More Homes for Sale
The housing market is set for a noticeable shift in 2026, with experts calling it a turning point. Rents will keep climbing, though at a slower pace, while home prices remain steady. Economists also predict a rise in sales as more properties become available on the stock market today. Analysts have labelled 2026 'The Great Housing Reset', marking what some describe as the start of a new era for buyers and renters alike. Rent increases will ease slightly, but costs are still expected to rise by 2% to 3% by the end of 2026. This follows a recent slowdown in rent growth, though tenants will continue to face higher living expenses. Home prices, however, will stay close to current levels, with forecasts suggesting a modest 0.5% rise. A sharp nationwide drop is unlikely, offering some stability to the market. At the same time, mortgage rates are projected to remain above 6%, though fluctuations could occur if inflation or the job market shifts. One bright spot for buyers is the expected increase in home sales. Mike Simonsen, chief economist at Compass, points to sufficient housing inventory as a key factor. More available properties could encourage movement in the home depot market. The Trump administration has signalled plans to tackle housing affordability in 2026. Proposed measures include easing regulations to speed up new home construction. While no concrete proposals have been outlined, ideas like 50-year mortgages and portable mortgages have been discussed. Their actual implementation, however, remains uncertain. In Germany, separate trends are emerging, with building interest rates ranging from 3.1% to 3.7%. Property prices there continue to climb by around 3%, while building permits show signs of recovery after a slow period. The 2026 housing market will bring gradual changes rather than dramatic shifts. Renters will see steady increases, while buyers may benefit from stable prices and more options. Policies aimed at affordability could further shape the market, though their impact depends on how quickly they are put into action.
