The U.S. housing market is entering spring 2026 in a state of cautious transition. Mortgage rates are continuing to fluctuate, affordability is improving for the eighth straight month, and buyers are finding more options than they have in years — but economic uncertainty, job losses, and geopolitical tensions are keeping many households on the sidelines. Here's everything you need to know about where the housing market stands right now.
The job market remains steady, with 178,000 jobs added in March and unemployment holding at 4.3%.
Price growth is slowing, inventory is rising, and affordability is starting to improve, but demand is still strong and where buyers are spending (and what they’re willing to pay for) is shifting.
U.S. home values are up just 0.4% year-over-year to $366,019, with homes going pending in about 31 days, signaling a stabilizing market.
In today’s strongest markets, up to 68% of listings are affordable to median-income buyers — a meaningful shift after years of limited entry points for first-time buyers.
Apartment rents are expected to grow just 0.8% year-over-year and single-family rents 1.8%, signaling a much flatter rental market and easing pressure on affordability.
Buyer demand is still strong, with listing views running 32% higher than last year, even as mortgage rates climbed in March.
Inventory continues to build, with 1.23 million homes for sale and active listings up 4.2% year-over-year — the 28th straight month of annual inventory growth, giving buyers more options.
Homes with lifestyle features like docks, outdoor kitchens, and fireplaces are selling for up to 5.4% more.
Move-in ready homes are commanding higher prices, with turnkey homes selling for 2.9% more, while fixer-uppers are selling for 14% less, as buyers avoid renovation costs.
Mid-to-high priced homes saw the strongest appreciation at 1.4% year-over-year as demand holds up better than at the lower end.
Housing policy, technology, and affordability are all shaping how homes are being built and bought right now.
A survey of 115 big-city mayors found most agree more housing is needed, but fewer are willing to change the rules that make building it possible.
Affordability is still shaping where buyers are looking, and these 10 markets are standing out for offering a better balance of price, lifestyle, and long-term opportunity.
Huntsville, AL ($325K) offers a booming tech and aerospace job market, along with a growing food and arts scene.
Carmel, IN ($478K) offers top-rated schools, strong safety, and a polished suburban feel just outside Indianapolis.
Sugar Land, TX ($432K) offers a family-friendly community with strong schools, diversity, and plenty of parks and trails.
Naperville, IL ($498K) offers a vibrant downtown, great schools, and easy commuter access to Chicago.
Plano, TX ($495K) offers a major corporate job base, high-paying careers, and a strong dining and shopping scene.
Birmingham, AL ($179K) offers one of the most affordable price points, with a growing food scene and strong healthcare jobs.
Troy, MI ($397K) offers top-rated schools, strong safety, and a stable economy tied to automotive and tech.
Overland Park, KS ($405K) offers affordability, strong schools, and access to green space with a solid job market.
Round Rock, TX ($447K) offers fast growth, access to Austin jobs, and family-friendly neighborhoods.
New Braunfels, TX ($357K) offers a laid-back lifestyle with river access and proximity to both Austin and San Antonio.
What’s Happening Across the Country
While national trends are shifting toward balance, local markets continue to move at their own pace. Here’s a concise look at what stands out by region.
The Southeast continues to lead for first-time buyers, with Jacksonville, FL (#1), Birmingham, AL (#2), and Atlanta, GA (#4) all ranking among the top markets due to improving affordability and inventory.
Atlanta’s luxury market is moving fast, with 4 of the top 5 highest-priced homes going under contract in just over a week, while demand under $500K remains much slower and more selective.
Vero Beach, FL is emerging as a luxury hotspot, with $1M+ home sales up 48.8% since the pandemic and inventory extremely tight at just 1.6%, putting upward pressure on prices.
Springfield, MA ranked the hottest market in March, with homes getting 3.6x more views and selling in just 32 days.
In Connecticut, a 130,000 sq. ft. historic mill is being converted into 200+ apartments, highlighting how cities are turning old industrial sites into housing amid a severe supply shortage.
Prices are still climbing in Boston (+1.7% year-over-year) even as inventory rises 6.8%, showing steady demand at higher price points.
New Hampshire needs 90,000 new housing units by 2040, as home prices climb to $535K vs. ~$103K median income, highlighting how supply shortages are pushing affordability further out of reach.
Springfield, MA ranked the hottest market in March, with homes getting 3.6x more views and selling in just 32 days.
In Chicago, IL home values jumped 4.5% year-over-year while inventory fell 1.6%, tightening supply and pushing prices higher.
Detroit, MI launched the Move Detroit program, offering up to $15,000 in housing incentives to attract residents and build on recent population growth.
Seller’s markets are becoming rare, with just 26% of major metros still in that category — and Midwest markets like Chicago and Indianapolis leading the way.
Kenosha, WI ranked as the second hottest market in March nationally, with homes getting 3.3x more views and selling in just 30 days.
Texas markets like San Antonio (#3) and Houston (#5) rank among the best for first-time buyers, driven by more affordable listings and lighter competition.
Population growth in Texas is shifting toward the suburbs, with counties like Collin adding ~43,000 residents and Kaufman growing 5.7%, while urban areas like Dallas County saw a decline of 2,600 residents.
A new 384-acre master-planned community in San Antonio is bringing 1,167 homes to market with prices starting at $300K, adding supply in a region that’s still growing despite a cooling market.
In Phoenix, home prices are down 1.6% year-over-year while inventory rises 4.6%, continuing a gradual reset after rapid growth in prior years.
Water shortages are starting to reshape homebuilding across the West, with states like Colorado and Arizona limiting development and adding costs — including $60K–$70K per home just for water rights in some areas.
A new master-planned community is expanding housing supply near Las Vegas, with KB Home developing up to 940 homes in Henderson, with prices starting just under $360K.
Water shortages are reshaping growth in the West, adding $60K–$70K per home just to secure water rights.
In Seattle, inventory is up sharply (+23.8% year-over-year) while home values are down 1.8%, giving buyers significantly more leverage than in recent years.
Olympia, WA is requiring home energy scores in listings, with sellers paying $150–$350 per report, as the city pushes for more transparency as energy costs rise.
Portland, OR is seeing slower demand, ranking #217 nationally on March’s hottest markets ranking, though homes are still selling about 8 days faster than the U.S. average.
San Francisco is seeing a surge in high-end demand, with homes selling for up to $2.35M over asking in as little as 4–8 days, fueled by new wealth from the AI sector.
California is pushing new legislation to boost housing in urban cores, with a proposed $500M fund and streamlined approvals to convert underused downtown space — where office vacancy rates are still as high as 30%+ — into new housing.
Fresno’s housing market is opening up for buyers, with a median price of $389,500, down 5.9% year-over-year, and homes taking longer to sell.
Be sure to check back next month for our updated insights and trends to keep you informed on the latest developments. In the meantime, if you’re thinking about buying, selling, or refinancing, our Home Loan Specialists are always ready to help you make the right move.
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