The housing crisis is a reality in the United States. Many homeowners have been forced to sell their properties at a loss due to a lack of buyers. Citizens no longer have the same ease of access to housing as they did a few years ago. Cities like Austin, Miami, Chicago, Los Angeles, and Denver are among the hardest hit by the housing problem. Furthermore, due to inflation, real-valued prices may change little or even decrease slightly, offering some relief for affordability. The fact is, the real estate sector in the country is facing a difficult period.
Experts predict the market could be slightly more favorable for buyers in 2026, at least in 22 cities across the country
Many experts advise waiting to buy, as current prices don’t reflect the true value of properties. The loss of bargaining power for homeowners marks a new phase in the U.S. real estate market. In fact, experts predict the market could be slightly more favorable for buyers in 2026, at least in 22 cities across the country. Indeed, the lack of buyers is forcing many sellers to lower prices or withdraw their properties from the market amid a prolonged sales slump, according to The Associated Press.
Until now, rising property values and a low housing stock allowed homeowners to negotiate from a position of strength
Americans are seeking new ways to acquire housing, as buying a home is proving to be a challenging path. While the supply of new homes is growing and list prices are falling in various regions, homeownership is becoming increasingly difficult for millions of Americans. Official reports indicate that national home prices could rise modestly by around 2.2% nominally by 2025. This is because, until now, rising property values and a low housing stock allowed homeowners to negotiate from a position of strength, something that is no longer the case.
“Next year’s housing market will be relatively more favorable for buyers”
According to local media, in the South and West of the country, homeowners are seeking alternatives to close sales, including price reductions, contributions to lower mortgage rates, or coverage of closing costs and repairs. In any case, according to Realtor.com’s 2026 Real Estate Forecast, “next year’s housing market will be relatively more favorable for buyers” due to a drop in home prices. Recent data projects that the average 30-year mortgage rate will be around 6.3%.
70% of potential buyers are priced out of the market, according to official data
Some of the areas where a drop in housing prices is expected by 2026 include Atlanta–Sandy Springs–Roswell, Georgia (0.1%), Boise City, Idaho (0.8%), Cape Coral–Fort Myers, Florida (10.2%), Colorado Springs, Colorado (0.4%), and Deltona–Daytona Beach–Ormond Beach, Florida (3.6%). It’s worth noting that the national median home price in July reached $439,450, according to Realtor.com. However, this figure far exceeds the $298,000 that a middle-income family can afford, and these are the families who most often require a permanent home. This type of family typically aims for a 20% down payment and a 30-year mortgage with a fixed interest rate of 6.74%. Thus, 70% of potential buyers are priced out of the market, according to official data.
In districts with the greatest oversupply, an opposite phenomenon is occurring
The fact is that the supply of existing homes will continue to increase by up to 8.9%, and a slight increase in new home construction of 3.1% is expected, which could help balance supply and demand, according to Realtor.com. New construction increases the opportunity for potential buyers to have more options when looking for a home. However, in districts with the greatest oversupply, an opposite phenomenon is occurring, in which some owners prefer to withdraw their properties from the market rather than accept excessive price reductions.