Real Wealth Show: Real Estate Investing Podcast 2026 Housing Market Forecast: Prices, Rates & Affordability with Odeta Kushi
20 snips
Dec 16, 2025 
Kathy Fettke hosts Odeta Kushi, Deputy Chief Economist at First American, who offers insightful predictions on the 2026 housing market. They explore expected improvements in affordability as incomes rise faster than prices, along with modest price growth, particularly in resilient regions. Odeta discusses the stabilization of mortgage rates, regional differences in housing demand, and the challenges faced by FHA borrowers. With a focus on single-family rentals and builder strategies, they emphasize progress without foreseeing a housing crash.
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Affordability Is Improving, Not Fixed
- Affordability has been improving in 2025 and is expected to continue improving in 2026.
- Income growth is likely to outpace house price growth, easing affordability despite mortgage rates remaining around the low 6% range.
Modest Price Growth Nationwide
- First American expects soft, low single-digit nominal house price growth in 2026 rather than widespread declines.
- Regional variation will be pronounced, with Northeast and Midwest showing more resiliency than many Sunbelt pandemic-high markets.
Pandemic Winners Are Cooling Fastest
- Pandemic 'darling' markets like Austin and Tampa are seeing the biggest softness after outsized pandemic gains.
- Austin, for example, saw about a 13% decline from its peak after a 65% pre-pandemic-to-peak gain.