Key real estate news in the US for Feburary

Key Real Estate News in the US for February 2026

As of early February 2026, the US real estate market is showing signs of stabilization and gradual improvement after years of volatility, with better affordability, slowing price growth, and mortgage rates hovering in the low- to mid-6% range. Here's a roundup of major developments based on recent reports:

- **Zillow's 2026 Housing Market Outlook**: Zillow forecasts gradual improvements in sales and affordability, with monthly mortgage payments down 8.4% from last year. Home inventory, prices, and sales are stabilizing, though competition remains low. Experts predict a slow turnaround, potentially opening opportunities for buyers in spring.

- **Slowing Home Price Growth**: Year-over-year price increases have decelerated to just 0.9% as of December 2025, continuing a downward trend. National forecasts for 2026 include 1.2% growth from Zillow, 2.2% from Realtor.com, and 2-3% from the National Association of Realtors (NAR), roughly aligning with inflation. J.P. Morgan predicts prices stalling at 0% overall.

- **Affordability Challenges and Projections**: To match 2019 affordability levels, household incomes would need to rise 56% to $132,171, or mortgage rates fall to 2.65%. NAR expects home prices to rise 4% in 2026 due to demand vs. supply issues, but some cities may see dips in 22 of the top 100 markets.

- **Mortgage Rate Trends**: Rates are near three-year lows, with 30-year fixed rates at around 6.11% as of early February, up slightly from the prior week. Predictions for the month hover at 6.0%-6.14%, with potential for slight declines if the Fed eases. NAR forecasts rates falling to 6% overall in 2026, aiding sales growth.

- **Multifamily Sector Resilience**: Investment volume hit a three-year high in 2025, with cap rates tightening. New units added totaled 297,000 last year, down from 2024, easing supply pressures. Demand is rising with record multifamily households, setting up for stronger performance in 2026.

- **Regional Variations**: In Florida, inventory is up significantly (e.g., 230% in some areas), leading to claims of market "collapse," though sales are down 16-20% month-over-month. Wyoming and New Jersey lead in price appreciation. Broader trends include potential price dips in select cities and a K-shaped consumer spending impact on retail real estate.

- **Broader Trends to Watch**: Commercial real estate sees office demand recovering, tariffs influencing industrial sectors, and AI infrastructure boosting investments. Federal Reserve chair changes could affect rate paths, with home sales expected to jump 14% per NAR.

Overall, the market is shifting toward balance, with optimism for buyers amid easing rates and inventory growth, though affordability hurdles persist. Monitor economic policies and Fed actions for updates.