On The Market

chevron_right

Redfin: The Great “Reset” Starts in 2026

whatshot 13 snips

Dec 9, 2025

Guest

Chen Zhao

In this discussion, Chen Zhao, Head of Economic Research at Redfin, shares intriguing insights into the housing market, projecting a significant reset starting in 2026. She reveals 11 essential predictions, including the stabilization of mortgage rates and slower home price growth. Affordability is set to improve as wages outpace prices, providing relief for buyers and landlords alike. Zhao highlights how AI may transform real estate matchmaking, while regional market dynamics are expected to shift. This friendly chat unpacks what the future holds for homeowners and investors.

39:50

forum

Ask episode

web_stories

AI Snips

view_agenda

Chapters

menu_book

Books

auto_awesome

Transcript

info_circle

Episode notes

insights

INSIGHT

Affordability Will Improve Gradually

Redfin expects wages to outpace home price growth, improving affordability slowly.
The process may take five to six years before most buyers notice meaningful change.

volunteer_activism

ADVICE

Expect Modest Sales Recovery

Don't expect a big sales rebound; plan for modest transaction volume increases (~3%).
Prepare for a low-activity market even as affordability improves slightly.

insights

INSIGHT

Rents Poised To Reaccelerate Slightly

Rents should tick up in late 2026 as multifamily construction slows and rental demand rises.
The change may only bring rents back to flat in real terms, not large nominal gains.

Get the Snipd Podcast app to discover more snips from this episode

Headline: The Great Housing Reset Begins

00:41 • 2min

chevron_right

Mortgage Rates Likely Stable in Low Sixes

02:36 • 5min

chevron_right

Home Prices Slowing, Not Crashing

07:29 • 5min

chevron_right

Affordability Improves As Wages Outpace Prices

12:21 • 2min

chevron_right

Sales Volume Will Inch Up Slightly

13:53 • 3min

chevron_right

Rents Expected To Reaccelerate Modestly

17:18 • 4min

chevron_right

Housing Policy Becomes Central in Politics

21:47 • 5min

chevron_right

Refinances and Renovations Rise

27:05 • 5min

chevron_right

Regional Winners and Losers in 2026

31:49 • 3min

chevron_right

Climate Risk Shapes Local Choices

35:09 • 3min

chevron_right

Industry Shift: MLSs and NAR Focus Change

37:57 • 55sec

chevron_right

AI as Real-Estate Matchmaker

• Mentioned in 26 episodes

Real Estate by the Numbers

A Complete Reference Guide to Deal Analysis

Dave Meyer

J Scott

This book, written by J Scott and Dave Meyer, provides a detailed guide on how to analyze real estate deals using key metrics such as cash flow, compound interest, and other financial indicators. It is designed for both novice and experienced investors, offering real-world examples from the authors' own portfolios to help readers apply the concepts in practice. The book covers various aspects of real estate investing, including deal analysis, tracking progress, and adapting strategies to changing market conditions.

Redfin just called it. The housing market will “reset” in 2026…or at least it’ll be the start of it.

Chen Zhao, head of economics research and a returning guest on the show, has 11 predictions she and her team have formulated for the 2026 housing market. A long, slow period of progress could be upon us, as buyers get what they’ve been asking for: better affordability, a more normal market, and the chance to own where there’s work.

But what does this really mean? Will mortgage rates fall? Will home prices drop? We’re going through each of the 11 predictions with Chen, discussing prices, rates, rents, refinances, transaction volume, and even how AI could become the “matchmaker” for Americans looking for their first or next property.

Make no mistake, this is good news for many, and could be just the start of a cycle that finally puts average Americans in the position to purchase a home. But, for real estate investors and landlords, there could be another big benefit coming in 2026, one that has a direct impact on your cash flow.

In This Episode We Cover

Redfin’s 2026 housing market predictions (prices, mortgage rates, and more!)

The great “reset” that is coming for the housing market (it’s already begun)

Rent growth returns? Struggling landlords could get some relief next year

The best and worst real estate markets that Redfin is forecasting for 2026

The AI effect on real estate and why more buyers are using bots to find homes

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Find an Investor-Friendly Agent in Your Area

Redfin’s 2026 Predictions: Welcome to The Great Housing Reset

Dave's BiggerPockets Profile

Grab Dave’s Book, "Real Estate by the Numbers"

Learn more about your ad choices. Visit megaphone.fm/adchoices

Home Top podcasts Popular guests Top books