The 2026 housing market is expected to rebound with a 14% increase in home sales, aided by more inventory and lower mortgage rates. Home price growth will be modest, around 2-3%, improving affordability as incomes rise faster than prices. New home construction is set to grow slightly, though a housing deficit persists due to zoning limits. Demographic shifts include more single female buyers and dominant baby boomer activity. Mortgage rate drops could add 500,000 sales, but middle-income buyers remain constrained.