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The Reason Homes Feel Like They Cost So Much (It’s Not What You Think)

Scroll through your feed and you’ll see plenty of finger-pointing about why homes cost so much. And according to a national survey, a lot of people believe big investors are to blame.

Even though data shows that’s not true, nearly half of Americans surveyed (48%) think investors are the top reason housing feels so expensive (see graph below):

But that theory doesn’t actually hold up once you look at the data.

The Truth About Investors

Investors do play a role in the housing market, especially in certain areas. But they’re not buying up all the homes like so many people on social media say.

Nationwide, Realtor.com found only 2.8% of all home purchases last year were made by big investors (who own more than 50 properties). That means roughly 97% of homes were bought and sold by regular people, not corporate giants. Danielle Hale, Chief Economist at Realtor.com, explains:

“Investors do own significant shares of the housing stock in some neighborhoods, but nationwide, the share of investor-owned housing is not a major concern.”

So, if it’s not investors, why are home prices so high?

What’s Really Behind Today’s Home Prices

The real story behind rising prices has less to do with who’s buying and more to do with what’s missing: enough homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), says:

“It’s been popular among some to blame investors, but with housing, the economics of that don’t make a lot of sense. The fundamental driver of housing costs is the shortage itself—it’s driven by the fact that there’s a mismatch between the number of households and the actual size of the housing stock.”

There simply haven’t been enough homes for sale to meet buyer demand. And that shortage, not investor activity, is what’s pushed prices higher just about everywhere.

Bottom Line

It’s easy to believe investors caused today’s housing challenges. But the truth is, the market just needs more homes, and that’s finally starting to happen.

As more options hit the market, buying may feel a little more realistic again.

Connect with a local real estate agent and talk about what’s happening in your market.

Is the Housing Market Going To Crash? Here’s What Experts Say

If you’ve seen headlines or social posts calling for a housing crash, it’s easy to wonder if home values are about to take a hit. But here’s the simple truth.

The data doesn’t point to a crash. It points to slow, continued growth.

And sure, it’s going to vary by local area. Some markets will see prices rise more than others. And some may even see small, short-term declines. But the big picture is: home prices are expected to rise nationally, not fall, over the next 5 years.

The Real Story Is in the Expert Forecasts

In the Home Price Expectations Survey (HPES) from Fannie Mae, each quarter over 100 leading housing market experts weigh in on where they project home prices will go from here. And in the report that was just released, the experts agree prices are projected to climb nationally through at least 2029 (see graph below):

a graph of green squaresHere’s how to read this visual. Each bar in that graph shows an increase, not a loss. It’s just that the anticipated pace of that appreciation varies year-to-year.

And to further drive this home, let’s look at another view of where prices are and where they’re expected to go. In this version, the expert forecasts are broken into 3 categories: the overall average, the most optimistic projections, and the most pessimistic projections (see chart below):

a graph on a blue backgroundNotice how even the most pessimistic forecasters say we’ll see prices rise by almost 5% over the next few years.

  • Overall, prices are expected to rise about 15% from now through the end of 2029.
  • The optimists say we’ll beat that and see a roughly 26% increase.
  • And even the pessimists anticipate prices will go up by 5% during that period.

What sticks out the most? None of these groups who study the market are forecasting a crash, or even a decline, over the next 5 years.

How This Compares to “Normal” for the Market

Now, focus back on the first graph. The projections call for 2-3.5% price increases in each of the next five years. For context, the average rate of appreciation for the last 25 years was closer to 4-5% annually.

So, while that’s slightly below the historical average, it’s much more sustainable and typical than where the market was in 2020, 2021, and 2022.

Back then, prices rose too much, too fast based on record-low supply and record-high demand. Some places even saw prices climb by 15-20%.

So, while it may feel like prices are stalling compared to those pandemic-era surges, what’s really happening is that the market is finally finding balance again.

Why Prices Aren’t Expected To Crash

A lot of the chatter about home prices today is based on that rapid rise and the old saying that what goes up, must come down. But historically, that’s not really true. Home prices almost always rise.

And the main reason we’re not heading for a repeat of 2008 is simple: supply and demand.

Even though affordability challenges have made it harder for some people to buy over the past few years, there still aren’t enough homes for everyone who wants one. And that ongoing shortage is keeping upward pressure on prices nationally. 

That’s why experts across the board can confidently agree: we’re not headed for a price collapse, but for steady, long-term appreciation.

And just in case it’s the economy that’s got you worried, remember this. Over the past 50 years, there have been plenty of economic events that have impacted the market. And one thing that’s consistently been true throughout time is the housing market always recovers. And we’re coming through that turn right now and going into a recovery.

Bottom Line

If you’ve been waiting to buy or sell because you’re worried about a crash, it’s time to look at the data – not the headlines.

The question isn’t if home prices will rise, it’s by how much.

Connect with an agent who can show you what’s happening in your local market and what these forecasts mean for your next move.

2026 Housing Market Outlook

After a couple of years where the housing market felt stuck in neutral, 2026 may be the year things shift back into gear. Expert forecasts show more people are expected to move – and that could open the door for you to do the same.

More Homes Will Sell

With all of the affordability challenges at play over the past few years, many would-be movers pressed pause. But that pause button isn’t going to last forever. There are always people who need to move. And experts think more of them will start to act in 2026 (see graph below):

a graph of a graph showing the number of the company's salesWhat’s behind the change? Two key factors: mortgage rates and home prices. Let’s dive into the latest expert forecasts for both, so you can see why more people are expected to move next year.

Mortgage Rates Could Continue To Ease

The #1 thing just about every buyer has been looking for is lower mortgage rates. And after peaking near 7% earlier this year, rates have started to ease.

The latest forecasts show that could continue throughout 2026, but it won’t be a straight line down (see graph below):

a graph with numbers and linesThere’s a saying: when rates go up, they take the escalator. But when they come down, they take the stairs. And that’s an important thing to remember. It’ll be a slow and bumpy process.

Expect modest improvement in mortgage rates over the next year but be ready for some volatility. There will be volatility along the way as new economic data comes out. Just don’t let it distract you from the bigger picture: the overall trend will be a slight decline. Forecasts say we could hit the low 6s, or maybe even the high 5s.

And remember, there doesn’t have to be a big drop for you to feel a change. Even a smaller dip helps your bottom line.

If you compare where rates are now to when they were at 7% earlier this year, you’re already saving hundreds on your future mortgage payment. And that’s a really good thing. It’s enough to make a real difference in affordability for some buyers.

Home Price Growth Will Be Moderate

What about prices? On a national scale, forecasts say they’re still going to rise, just not by a lot. With rates down from their peak earlier this year, more buyers will re-enter the market. And that increased demand will keep some upward pressure on prices nationally – and prevent prices from tumbling down.

So, even though some markets are already seeing slight price declines, you can rest easy that a big crash just isn’t in the cards. Thanks to how much prices rose over the last 5 years, even the markets seeing declines right now are still up compared to just a few years ago.

Of course, price trends will depend on where you are and what’s happening in your local market. Inventory is a big driver in why some places are going to see varying levels of appreciation going forward. But experts agree we’ll see prices grow at the national level (see graph below): 

a graph of green rectangular objectsThis is yet another good sign for buyers and overall affordability. While prices will still go up nationally, it’ll be at a much more sustainable pace. And that predictability makes it easier to plan your budget. It also gives you peace of mind that prices won’t suddenly skyrocket overnight.

Bottom Line

After a quieter couple of years, 2026 is expected to bring more movement – and more opportunity. With sales projected to rise, mortgage rates trending lower, and price growth slowing down, the stage is set for a healthier, more active market.

So, the big question: will you be one of the movers making 2026 your year?

Connect with an agent if you want to get ready.

Why Home Prices Aren’t Actually Flat

If you’ve been following real estate news lately, you’ve probably seen headlines saying home prices are flat. And at first glance, that sounds simple enough. But here’s the thing. The reality isn’t quite that straightforward.

In most places, prices aren’t flat at all.

What the Data Really Shows

While we’ve definitely seen prices moderate from the rapid and unsustainable climb in 2020-2022, how much they’ve changed is going to be different everywhere.

If you look at data from ResiClub and Zillow for the 50 largest metros, this becomes very clear. The real story is split right down the middle. Half of the metros are still seeing prices inch higher. The other half? Prices are coming down slightly (see graph below).

a graph of prices on a dark backgroundThe big takeaway here is “flat” doesn’t mean prices are holding steady everywhere. What the numbers actually show is how much price trends are going to vary depending on where you are.

One factor that’s driving the divide? Inventory. The Joint Center for Housing Studies (JCHS) of Harvard University explains:

“ . . . price trends are beginning to diverge in markets across the country. Prices are declining in a growing number of markets where inventories have soared while they continue to climb in markets where for-sale inventories remain tight.”

When you average those very different trends together, you get a number that looks like it’s flat. But it doesn’t give you the real story and it’s not what most markets are feeling today. You deserve more than that.

And just in case you’re really focusing on the declines, remember those are primarily places where prices rose too much, too fast just a few years ago. Prices went up roughly 50% nationally over the past 5 years, and even more than that in some of the markets that are experiencing a bigger correction today. So, a modest drop in some local pockets still puts most of those homeowners ahead when it comes to the overall value of their home. And based on the fundamentals of today’s housing market, experts are not projecting a national decline going forward.

So, what’s actually important for you to know?

If You’re Buying…

You need to know what’s happening in your area because that’s going to influence everything from how quickly you need to make an offer to how much negotiating power you’ll have once you do.

  • In a market where prices are still inching up, waiting around could mean paying more down the line.
  • In a market where they’re easing, you may be able to ask for things like repairs or closing cost help to sweeten the deal.

The bottom line? Knowing your local trend puts you in the driver’s seat. 

If You’re Selling…

You’ll want to be aware of local trends, so you’ll know how to price your house and how much you can expect to negotiate.

  • In a market where prices are still rising, you may not need to make many compromises to get your home sold.
  • But if you’re in a market where prices are coming down, setting the right price from the start and being willing to negotiate becomes much more important.

The big action item for homeowners? Sellers need to have an agent’s local perspective if they want to avoid making the wrong call on pricing – and homes that are priced right are definitely selling.

The Real Story Is Local

The national averages can point to broad trends, and that’s helpful context. But sometimes you’re going to need a local point of view because what’s happening in your zip code could look different. As Anthony Smith, Senior Economist at Realtor.com, article puts it:

“While national prices continued to climb, local market conditions have become increasingly fragmented…This regional divide is expected to continue influencing price dynamics and sales activity as the fall season gets underway.”

That’s why the smartest move, whether you’re buying or selling, is to lean on a local agent who’s an expert on your market.

They’ll have the data and the experience to tell you whether prices in your area are holding steady, moving up, or softening a bit – and how that could impact your move.

Bottom Line

Headlines calling home prices flat may be grabbing attention, but they’re not giving you the full picture.

Has anyone taken the time to walk you through what’s happening in your market?

If you want the real story about what prices are doing in your area, connect with a local agent.

Stay informed