Summary
The U.S. housing market is expected to enter a new phase in 2026, showing a noticeable difference between regions. While cities in the Rust Belt continue to see rising home prices, Sun Belt regions like Florida and Texas are seeing prices fall due to increased housing supply and other economic factors.
Key Facts
- The U.S. housing market is predicted to change significantly in 2026 with regional price variations.
- Rust Belt cities like Cleveland, Hartford, Albany, and Chicago are experiencing rising home prices and low inventory.
- Sun Belt cities in Florida, Texas, and Arizona face a housing market decline with high inventory levels.
- The Sun Belt's housing boom during the pandemic resulted from increased demand due to remote work.
- High construction rates in the Sun Belt regions have led to a surplus of available homes.
- Housing costs and mortgage rates in these areas are high, deterring new buyers.
- The median home price in Florida decreased slightly by 0.39% from the previous year, while Texas saw a 0.81% decrease.
- Nationwide, the average home price rose by 1.3% owing to limited inventory in northeastern markets.
