Optimistic Housing View in 2026
Easing Rates and Rising Inventory Point to a More Optimistic Housing View
Housing Conditions Begin to Improve as Rates Ease
Lower mortgage rates, gradually rising housing inventory, and strong demographic demand are starting to improve housing conditions, according to Dr. Jessica Lautz, deputy chief economist and vice president of research for the National Association of Realtors (NAR).
Speaking at the Mid-Winter Business Meetings during a Florida Realtors Live session, Lautz said these shifts are helping ease the market gridlock that has kept many buyers and sellers on the sidelines over the past two years.
Mortgage Rates Help Unlock Delayed Moves
Mortgage rates trending in the 6% range are encouraging more consumers to revisit housing decisions that were previously paused.
“Life changes still motivate people to move,” Lautz said, noting that events such as retirement, marriage, and divorce are increasingly outweighing concerns about borrowing costs.
As rates stabilize, more households are reassessing timing and affordability rather than waiting indefinitely for further declines.
Inventory Is Rising—But Not Everywhere
Housing inventory is improving, but gains remain uneven across markets. Some Florida markets are seeing a meaningful increase in listings, while other parts of the country continue to face supply constraints.
Lautz cautioned that national inventory headlines can be misleading, as many areas are only now approaching pre-pandemic levels, rather than exceeding them.
Affordability Remains a Local Issue
Affordability continues to be the central challenge in housing, and Lautz emphasized that solutions will largely come from local decision-making, not national policy alone.
Key constraints include:
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Zoning and land-use regulations
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Local development restrictions
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Community resistance to new housing
She noted, play an important role by bringing data-driven insights to discussions about housing supply, affordability, and economic impact at the local level.
Institutional Investors Represent a Small Share
Addressing concerns about investor activity, Lautz pointed out that large institutional investors account for just over 3% of home purchases. Overall investor activity has declined in recent years, easing some pressure on inventory and pricing.
Demographics Continue to Drive Housing Demand
Demographic trends remain a powerful force shaping buyer demand:
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Baby boomers are currently the largest group of buyers, often purchasing with cash and relocating closer to family.
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Gen Z buyers are entering the market cautiously and represent a smaller share of transactions so far.
These trends continue to support demand for smaller, more attainable housing options, including condos and townhomes.
A Cautiously Optimistic Outlook
Despite ongoing challenges, Lautz expressed optimism about the path ahead.
“We’re expecting home sales to increase from recent levels,” she said. “With lower rates, more supply, and strong underlying demand, there are reasons to be patient and optimistic.”
For Florida Buyers and Sellers
As conditions slowly improve, market participants who stay informed and act strategically are best positioned to succeed. Understanding local inventory trends, pricing dynamics, and demographic demand is critical in today’s evolving market.
Work With Laura Graves Real Estate
In a market shaped by shifting rates, uneven inventory, and local affordability factors, expert guidance makes the difference.
Laura Graves helps buyers and sellers:
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Interpret market data at the neighborhood level
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Navigate timing decisions with confidence
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Identify opportunities as conditions improve
📍 Considering buying as rates stabilize?
📍 Thinking about selling as demand slowly returns?
Connect with Laura Graves Real Estate today:
786-457-8001
