US Housing Market Forecast 2026: Prices, Mortgage Rates, and Best States to Buy

The US housing market is expected to enter a more balanced phase in 2026 after years of rapid price growth and fluctuating mortgage rates. Experts predict modest home price appreciation as interest rates gradually stabilise, giving both buyers and investors renewed confidence. While affordability remains a challenge in some metro areas, opportunities are emerging across several states. High-growth states such as Texas, Florida, Arizona, and North Carolina continue to attract buyers due to population growth, job creation, and lower taxes. Cities like Austin, Tampa, Phoenix, and Raleigh are benefiting from strong rental demand and new infrastructure projects. Mortgage rates are forecast to ease slightly, which may increase buyer activity and competition in mid-priced markets. For investors, 2026 could be an ideal time to focus on cash-flow-positive properties rather than short-term appreciation. Long-term fundamentals such as employment growth, rental demand, and local housing supply will play a crucial role in determining returns. Careful market research remains essential in a changing US real estate environment.