Redfin’s 2026 Predictions: Welcome to The Great Housing Reset

Redfin

Chen Zhao, Daryl Fairweather

Research

23 Pages

Redfin outlines a 2026 housing outlook built around what it calls the Great Housing Reset. The authors expect a slow shift from an overheated, ultra tight market toward one that is more balanced, slightly more affordable and shaped by new household patterns and policy responses rather than boom and bust swings.

Date published: December 2, 2025

Key Takeaways

Great housing reset: Describes a multiyear transition where ultra tight, overheated conditions give way to a more balanced national market.
Affordability direction: Explains how rising incomes, lower rates and more listings gradually improve buying power even as ownership stays challenging.
Household and policy shifts: Highlights more room sharing, multigenerational living and local affordability policies reshaping where and how people live.
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