2026 Housing Market Predictions
If you’re planning to build a new construction home this year, you may be wondering what’s happening with the U.S. housing market. You want to know where interest rates are headed and whether you can expect your home to gain value quickly.
Zillow recently issued a housing report that might help answer those questions. The predictions in the report are based on research conducted by the company. The report provides an informed estimate of what to expect from the U.S. housing market in the coming year.
Interest rates
The big question for most potential homebuyers is “What’s happening with interest rates?” Mortgage interest rates are down a bit since they spiked in 2023. Zillow predicts they’ll hold steady for a while at around 6%. A big drop isn’t likely any time soon, so don’t put off buying a home if you’re ready now. If rates do plunge in the future, you can always apply to refinance at a lower rate.
Home values
What does Zillow’s report say about home values? Fortunately, they’re expected to rise slightly in 2026 as demand remains steady. This is good news for homeowners, since it helps build equity faster.
Builder incentives
More good news: Builders are continuing to use incentive strategies such as interest rate buy-downs and closing cost assistance to help buyers get into the homes they want. All these factors add up to make 2026 a great year to buy a new home.
Energy efficiency
Zillow’s research uncovered another factor that will make newly-built homes more affordable to own in 2026 and beyond. Buyer demand is leading to an increased focus on energy-efficient features. An energy-efficient home costs less to operate and provides a more comfortable environment for the people who live in it.
Looking to purchase a newly built energy-efficient home this year? River Stone Construction has available new homes in the greater Chattanooga TN area. We have a nice selection of luxury single family homes and affordable townhomes that are move-in ready or under construction now. We also offer a build on your lot program that can accommodate your custom home design or one of our proven floor plans.
Call River Stone Construction today at 423-954-7550 to get started on building your new construction home this year!
