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In 2026, the national housing market is shifting toward greater affordability. This change offers a window of opportunity for buyers, sellers, and investors. After years of high prices, limited inventory, and elevated mortgage rates, experts predict a gradual improvement in affordability. Rising incomes, moderating home prices, and increased housing supply are driving this shift.
But what does this mean for Sioux Falls? Here, the market has its own unique rhythm, affordability advantages, and a strong local economy. At BHGRE® Beyond, we believe understanding these national trends—and how they intersect with local conditions—is key to making smart, confident real estate decisions. This guide explores the national affordability landscape for 2026 and examines how these shifts are creating opportunities in Sioux Falls for buyers, sellers, and investors.
The National Affordability Picture in 2026
The national housing market is transitioning toward more balance in 2026. Affordability is improving gradually rather than dramatically. Here’s what the experts are saying:
Home Sales Are Expected to Rise
Zillow forecasts 4.26 million existing home sales in 2026. This is a 4.3% increase from 2025, as improving affordability brings more demand back to the market.
Redfin predicts sales of existing homes will end 2026 up 3% from 2025. Sales are coming in at an annualized rate of 4.2 million.
NAHB (National Association of Home Builders) expects modest existing home sales growth. Price appreciation is lower than the overall inflation rate.
Home Prices Are Moderating
U.S. home values are forecasted to grow just 1.2% in 2026, according to Zillow. After being roughly flat in 2025, this slowdown in price growth is a key driver of improving affordability.
J.P. Morgan Global Research sees U.S. home prices increasing by 2.2% in 2026. This is down from 4.8% in 2025. The firm also expects mortgage rates to average 5.9% in 2026, which is lower than the 6.4% average in 2025.
Mortgage Rates Are Easing
Mortgage rates are expected to trend lower in 2026. This will help improve affordability and bring more buyers back to the market.
The Mortgage Bankers Association predicts the 30-year fixed mortgage rate will average 5.9% in 2026. This is down from 6.4% in 2025.
Fannie Mae expects the 30-year fixed mortgage rate to average 6.2% in 2026. This is down from 6.6% in 2025.
Inventory Is Increasing
Housing inventory is expected to rise in 2026. This will give buyers more options and help ease competition.
Realtor.com forecasts that housing inventory will increase by 1.5% in 2026. This is after a 0.3% increase in 2025.
Zillow expects the number of homes for sale to rise by 2.1% in 2026. This is up from a 0.5% increase in 2025.
How National Trends Are Playing Out in Sioux Falls
Sioux Falls has long been known for its affordability, strong job market, and high quality of life. These national trends are creating new opportunities for buyers, sellers, and investors in our local market.
More Affordable Entry Points for Buyers
With home prices moderating and mortgage rates easing, buyers in Sioux Falls are finding more affordable entry points into the market. This is especially true for first-time homebuyers, who are benefiting from lower prices and improved affordability.
The median home price in Sioux Falls is currently around $350,000. This is significantly lower than the national median home price of $420,000.
Increased Inventory Means More Choices
As housing inventory increases nationally, Sioux Falls is also seeing a rise in the number of homes for sale. This gives buyers more options and reduces the competition that has characterized the market in recent years.
The number of homes for sale in Sioux Falls is currently up 5% year over year. This is higher than the national average of 1.5%.
A Balanced Market for Sellers
While the market is becoming more balanced, it remains favorable for sellers in Sioux Falls. With strong demand and limited inventory, sellers can still expect to receive competitive offers for their homes.
The average time a home spends on the market in Sioux Falls is currently 20 days. This is lower than the national average of 30 days.
Opportunities for Investors
For investors, Sioux Falls offers a stable and growing market with strong fundamentals. With affordability improving and inventory increasing, there are opportunities to capitalize on the city’s growing popularity and economic strength.
The average rent for a two-bedroom apartment in Sioux Falls is currently $1,200 per month. This is lower than the national average of $1,500 per month.
How BHGRE® Beyond Can Help You Navigate the Market
At BHGRE® Beyond, we understand that every client has unique goals and needs. Whether you’re a first-time homebuyer, a seller looking to maximize your investment, or an investor seeking new opportunities, we’re here to help.
For Buyers
We help you find homes that fit your budget and lifestyle. Our agents have a deep understanding of the Sioux Falls market and can guide you through every step of the home-buying process.
We provide access to the latest listings and market data. Our agents can help you identify homes that meet your criteria and fit your budget.
For Sellers
We help you price your home competitively and highlight its unique features. Our agents use a data-driven approach to determine the optimal listing price for your home.
We create a customized marketing plan to attract qualified buyers. Our agents use a variety of marketing channels to reach the widest possible audience.
For Investors
We help you identify properties with strong potential. Our agents have a deep understanding of the Sioux Falls market and can help you find properties that meet your investment criteria.
We assist in building a diversified portfolio that aligns with your financial goals and risk tolerance. Our agents can provide guidance on property selection, financing, and management.
Final Thoughts: A Market in Transition
The national trends of 2026—improving affordability, rising inventory, and moderating home prices—are creating a window of opportunity for Sioux Falls buyers, sellers, and investors. While the market is becoming more balanced, it remains favorable for those who act strategically.
For buyers, this means more options, better affordability, and a chance to find a home that truly fits your needs. For sellers, it means pricing strategically, highlighting your home’s value, and appealing to a growing pool of qualified buyers. For investors, it means capitalizing on a market with strong fundamentals and room to grow.
At BHGRE® Beyond, we’re committed to helping our clients navigate these shifts with confidence. Whether you’re buying your first home, selling your current property, or building a real estate portfolio, our local expertise and personalized approach can help you achieve your goals in Sioux Falls’ evolving market.
