The U.S. housing market is heading into 2026 in one of the largest bubbles in modern history. Home prices now exceed 5× median household income, while nearly 75% of Americans can’t afford a median new home. Low pandemic-era mortgage rates have locked homeowners in place, investors account for roughly one-third of purchases, and mortgage rates remain above 6%. This data-driven analysis breaks down affordability, frozen inventory, correction triggers, and what would prove the case wrong—using Federal Reserve and housing industry data.
United States