Redfin predicts a gradual housing market reset in 2026, marked by slower home price growth, improved affordability as wages outpace prices, and modestly lower mortgage rates around 6.3%. Home sales are expected to rise slightly, while rents may increase 2-3%. Multi-generational living and shared homeownership will continue. Policy reforms and AI tools will aid the market, with climate migration becoming more localized. This signals a slow, balanced recovery rather than a crash.