If you are asking this question, you are not alone. A lot of buyers feel stuck between rising everyday costs and home prices that still feel out of reach. The good news is that affordability is not a single lever. It is a mix of income, home prices, financing costs, and market leverage. In 2026, we are seeing signs that the balance can improve, especially for buyers who approach the process with a plan.

Wages are rising, but price growth still matters

Wage growth has been positive across many sectors, and that helps buyers qualify. One measure the U.S. Bureau of Labor Statistics tracks is the Employment Cost Index, which shows compensation trends over time. Recent readings show wages and salaries continuing to rise year over year. Bureau of Labor Statistics
But here is the catch: if home prices rise faster than income, affordability still feels tight. That is why it is important to watch both paychecks and price trends, not just one.

Home prices are not moving the same everywhere

National home price growth has cooled compared to the peak years, but it has not dropped evenly across the map. The Federal Housing Finance Agency’s House Price Index is one broad gauge of single family home price movement, and recent updates show modest year over year gains nationally. FHFA.gov
In plain English: some markets are stabilizing, some are still competitive, and some are finally offering buyers room to negotiate. Your zip code matters more than the headline.

Inventory and negotiating power are the real story

One of the most meaningful shifts for 2026 is leverage. When there is more inventory, buyers are not forced to waive protections or rush decisions as often. More inventory can also lead to more seller credits, more concessions, and more flexible terms. Realtor.com’s housing outlook points to continued improvement in for sale inventory alongside modest price growth expectations. Realtor
This is where affordability can quietly improve, even if sticker prices do not dramatically change. Better terms can reduce your monthly payment, your cash to close, or both.

Affordability is not just price, it is terms

It helps to think of affordability like a four part equation:

• Income: what you can qualify for responsibly

• Price: what homes cost in your target area

• Financing costs: the payment impact of rate and loan structure

• Leverage: whether sellers are willing to help with credits, repairs, or concessions

The National Association of Realtors also tracks affordability through its Housing Affordability Index, which is a useful way to see how affordability shifts over time. FRED

How buyers can improve affordability in 2026

Here are practical moves that can make the numbers work better:

1. Shop terms, not just homes. Ask what seller credits or concessions may be available before you fall in love with a property.

2. Get fully prepped early. Strong documentation and clear underwriting plans can help you compete without overpaying.

3. Use smart scenario planning. Compare options like different down payments, purchase price ranges, and credit strategies to see the real monthly payment difference.

4. Stay flexible on the search. A small change in neighborhood, property type, or timing can open better inventory and better negotiating opportunities.

5. Make decisions with real numbers. A plan beats guesswork every time.

The bottom line

Will home affordability improve in 2026? For many buyers, it can, especially when inventory and negotiating leverage improve. But the biggest difference often comes from strategy and the team you put around you. If you want, I can run a simple scenario and show you what is realistic based on your goals. No pressure, just real numbers.

Written by: Heather Gennette

Sources (general sites):

https://www.bls.gov https://www.fhfa.gov https://fred.stlouisfed.org https://www.realtor.com https://www.nar.realtor