Home affordability is expected to improve in 2026 as part of a “great reset” in the housing market, according to a Dec. 2 forecast from Redfin. The company anticipates some long-awaited relief for younger Americans hoping to purchase a home and start families.
For years, rising home values, slow wage growth, and climbing mortgage rates have put homeownership out of reach for millions. Data from the Federal Reserve Bank of St. Louis shows that the average home sales price increased from roughly $272,000 in 2009 to $513,000 in 2025—an 88 percent jump. During the same period, the average annual wage rose from $40,711 to $69,846, a 72 percent increase, according to the Social Security Administration.
