From cooling inflation and housing policy changes to red-hot local markets, last month brought plenty of news that could impact buyers, sellers, and homeowners. Here's a look at the key economic trends, housing market updates, and regional highlights shaping real estate across the country.
Inflation held at 3.4% as the Fed approved its first rate hike since 2023.
Inventory continues to improve, with some major markets posting 30 consecutive months of inventory growth.
Tariff-related cost pressures remain a challenge for homebuilders, with nearly 73% reporting higher material costs than a year ago and some citing increases of up to 15%.
Inflation held steady at 3.4% in August, while core inflation, which excludes food and energy, eased to 2.4%. Rising gas prices helped drive the monthly increase, but underlying inflation pressures continued to show signs of cooling.
The Federal Reserve unanimously approved its first interest rate hike since 2023, raising its benchmark rate by 0.25% and signaling at least one more increase could come before year-end.
The U.S. economy added 162,000 jobs in August while unemployment held steady at 4.1%, a sign that the labor market remains resilient even as hiring continues at a more moderate pace.
The Federal Reserve unanimously approved its first interest rate hike since 2023, raising its benchmark rate by 0.25%. (Source: Bonnie Cash/UPI)
A new survey found that 7 in 10 buyers of new-construction homes consider customization a must-have, with features like upgraded kitchens, storage, and finishes topping their wish lists.
72% of Americans would use AI for at least one home-buying task, while nearly half would consider purchasing a 3D-printed home.
Immigration remains an important driver of rental demand, with approximately 87% of recent immigrants renting when they first arrive in the U.S.
Housing policy, technology, and affordability are all shaping how homes are being built and bought right now.
Home shoppers may find their best opportunity of the year during the week of Sept. 27 to Oct. 3, when inventory is expected to peak and buyer competition typically slows.
Forty states introduced bills limiting local zoning authority to speed housing development, a strategy that can boost supply and affordability but may reduce local control overgrowth and planning.
Behr named "Grounded," an olive-green shade inspired by nature, as its 2027 Color of the Year, reflecting a trend toward earthy colors as 77% of Americans say connecting with nature helps them feel grounded.
The Trump administration is exploring manufactured housing reforms that could reduce the cost of some homes by up to $10,000 and expand affordable housing options nationwide.
An estimated $17.2 trillion is expected to change hands through the Great Wealth Transfer by 2045, and nearly 60% of that wealth is concentrated in just 10 states.
Housing policy remained in focus this month as the Trump administration nominated Matt Jones to lead the FHA, an agency that backs more than 15% of U.S. home purchase loans.
Lawmakers overwhelmingly approved a bill aimed at shielding homeowners from higher electric bills by requiring large power users, such as AI data centers, to bear more of the infrastructure costs they create.
Many homeowners may be holding onto their current mortgage rates, but they're not standing still. According to a new Angi survey, homeowners continue to invest in repairs, renovations, and upgrades, reinforcing the value they see in their homes.
66% plan to make a major home investment within five years.
56% expect to begin or continue a home improvement project in the next three months.
More than 25% are accelerating projects now to avoid future cost increases.
95% believe home improvements have been a smart financial decision.
96% say those projects have improved their quality of life.
Homeowners continue to invest in their properties, with 56% planning a home improvement project in the next three months and 66% expecting to make a major home investment within five years.
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.
Fort Myers remains a buyer-friendly market despite shrinking inventory, with homes for sale down 16.8% year-over-year, while buyers continue to negotiate discounts, especially on condos, where prices fell 5.6% and homes sold for just 86.7% of list price.
Atlanta’s housing market is giving buyers more leverage, with inventory rising for the 30th straight month to more than 34,000 listings, providing more opportunities to negotiate and wait for price cuts despite home prices increasing 2.5% year-over-year.
Dollywood has helped transform Sevier County, Tennessee, into a major tourism and housing market, driving job growth and development while also increasing pressure on workforce housing.
South Carolina earned an "A" on Realtor.com's 2026 Housing Report Card and is home to two of the nation's top-ranked markets for new construction: Charleston and Greenville.
Charleston was named one of the nation's top markets for new construction, helping South Carolina earn an "A" on Realtor.com's 2026 Housing Report Card.
Richmond dropped a proposal to allow up to three homes per residential lot but is still considering larger ADUs as part of its housing reform efforts amid ongoing community debate.
New Jersey is encouraging communities to make room for more housing, offering incentives for zoning changes that support new home construction.
Massachusetts housing inventory continues to improve, with Worcester-area listings up 12% year-over-year.
Maryland launched a new $50 million home buyer program that helps eligible teachers and first responders with down payment and closing cost assistance.
Rockford, Illinois ranked as the nation's hottest housing market, attracting 2.9 times the national average number of listing views while maintaining a median list price of just $269,900.
Des Moines, Iowa earned the highest grade in Realtor.com's 2026 housing market rankings, combining strong affordability, healthy home construction, and an average home value of just over $210,000.
Kenosha, Wisconsin ranked as the nation's No. 2 hottest housing market in August, supported by strong buyer demand, a median listing price of $400,000, and home values that have climbed 6.6% over the past year.
St. Louis home sales increased 2.2% year-over-year in July, while inventory jumped nearly 14%, creating more choices for buyers even as limited supply keeps the market competitive.
Oklahoma City earned an A- in Realtor.com's 2026 housing market rankings, standing out for its combination of affordability and strong homebuilding activity.
Texas Senate Bills 15 and 840 are helping increase the supply of starter homes and apartments, which could improve affordability and give buyers and renters more options, although some local regulations may limit those benefits in certain markets.
A new report ranked Midland, Texas, among the country's top under-the-radar short-term rental markets, highlighting strong income potential for investors.
Wyoming and Nebraska are tackling housing shortages with innovative solutions, including affordable dome homes and construction workforce training programs to boost housing supply.
Colorado offers one of the nation's most generous first-time home buyer programs, providing up to $25,000 in down payment assistance with grant options that don't require repayment.
Salt Lake County's median home price reached a record $645,000 in the second quarter, highlighting the affordability challenges facing many Utah home buyers.
The Ogden, Utah housing market is becoming more balanced, with active listings up 9% from a year ago, prices softening slightly, and buyers gaining more negotiating power as homes sell for about 97% of asking price.
San Diego’s housing market is showing signs of cooling as job growth slows and labor force participation declines, which could reduce buyer competition even as home sales rose more than 7% year-over-year and single-family home prices reached a record $1.1 million+.
Seattle posted the steepest home-sales decline among the nation’s 40 largest housing markets, with sales down 8% year-over-year as inventory climbed above 16,000 listings and median home prices fell nearly 4%, giving buyers significantly more negotiating power.
After wildfires destroyed roughly 12,000 homes in 2025, California passed new laws aimed at helping homeowners navigate insurance claims and recovery more quickly.
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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