Next year is likely to be the slowest year for single-family home construction starts since 2019 across the United States, following a notably weak year in 2025, real estate marketplace Zillow has predicted.
This is because there’s a large stock of new homes already built and others still under construction, resulting in builders holding back on starting new projects.
Single-family starts are 5% below last year’s pace.
A further 2% drop from that pace in 2026 would bring starts below the roughly 947,000 homes begun in 2023, currently the low-water mark since the start of the pandemic.
In terms of house prices, they are expected to rise by a modest 1.2% in 2026, aided by slightly cheaper mortgage rates.
Mischa Fisher, chief economist at Zillow, said: “The housing market is finally settling into a healthier state, with buyers and sellers starting to return.
“Buyers are benefiting from more inventory and improved affordability, while sellers are seeing price stability and more consistent demand. Each group should have a bit more breathing room in 2026.”
In 2026 AI is expected to move beyond offering advice and begin coordinating steps in the buying, selling and renting processes.
Instead of simply recommending actions, AI assistants will help manage tasks end to end — from connecting buyers and sellers with the right real estate agents to tour scheduling, to negotiations and closing prep.
This should streamline decisions, automate routine work and make the transaction feel more predictable.