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Fortune
Fortune
Business
Nino Paoli

The ‘Great Housing Reset’ is coming: Income growth will outpace home-price growth in 2026, Redfin forecasts

Photo of a sign reading New Price in front of a home for sale (Credit: Paige Taylor White/Bloomberg via Getty Images)

Homebuyers may experience a reprieve in 2026 as price normalization and an increase in home sales over the next year will take some pressure off the market—but don’t expect homebuying to be affordable in the short run for Gen Z and young families.

The “Great Housing Reset” will start next year, with income growth outpacing home-price growth for a prolonged period for the first time since the Great Recession era, according to a Redfin report released this week. 

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