Realtor.com Forecasts Gradual Housing Market Recovery by 2026 Amid Ongoing Challenges – Wednesday, December 3, 2025

Realtor.com has released a forecast indicating that the housing market is expected to begin a gradual recovery in 2026. This projection highlights persistent challenges within the sector, with improvements anticipated to unfold slowly over the coming years.

Who should care: city planners, smart city program managers, real estate technology leaders, mobility operations teams, and urban infrastructure decision-makers.

What happened?

Realtor.com’s latest forecast projects that the housing market will not start recovering until 2026, signaling that current difficulties are likely to persist well into the near future. The report emphasizes a slow and measured pace of improvement, though it does not provide specific metrics or quantify the extent of the anticipated recovery. This announcement arrives amid ongoing challenges in the real estate sector, including fluctuating interest rates, supply chain disruptions, and evolving consumer preferences that continue to complicate market dynamics. The extended timeline for recovery suggests that stakeholders across the industry should prepare for a prolonged period of strategic adaptation and careful planning. Notably, the forecast does not specify which segments of the market—whether pricing, inventory levels, or sales volume—will lead the recovery, leaving some uncertainty about the initial areas of improvement. This cautious outlook reflects broader economic uncertainties and underscores the importance of resilience and flexibility in real estate operations and urban planning efforts moving forward.

Why now?

The timing of Realtor.com’s forecast aligns closely with recent economic trends and market volatility observed over the past 18 months. Rising interest rates combined with economic uncertainty have contributed to a cooling housing market, prompting stakeholders to adopt a long-term perspective on recovery. This forecast serves as a strategic guide for industry players, helping them navigate the current landscape and prepare for gradual shifts ahead. By framing recovery around 2026, the report provides a clear timeline for stakeholders to align their strategies and resource allocation with expected market conditions.

So what?

This forecast carries significant implications for the real estate industry, signaling that challenges will likely continue in the short to medium term. As a result, strategic planning and adaptability will be essential for navigating the evolving market environment effectively. Real estate technology leaders and smart city program managers, in particular, should focus on leveraging data analytics and innovative solutions to optimize operations and build resilience against ongoing uncertainties. Additionally, the forecast highlights the critical need to monitor economic indicators and market trends closely, enabling proactive adjustments to strategies as conditions evolve. For urban planners and mobility teams, understanding the slow recovery timeline can inform infrastructure investments and transportation planning that remain flexible to shifting development patterns.

What this means for you:

• For city planners: Prioritize long-term infrastructure projects that align with a gradual market recovery, ensuring investments remain relevant as conditions improve.
• For real estate technology leaders: Invest in predictive analytics tools to better anticipate market shifts and support data-driven strategic decision-making.
• For mobility operations teams: Develop flexible transportation solutions capable of adapting to evolving urban development and population movements.

Quick Hits

• Impact / Risk: The forecasted delayed recovery may extend financial pressures for real estate stakeholders, requiring sustained risk management.
• Operational Implication: Organizations should strengthen strategic planning capabilities to effectively manage ongoing market uncertainties.
• Action This Week: Review current real estate strategies, assess exposure to market risks, and adjust plans to accommodate a longer recovery horizon.