For many people, owning a home is a top goal for 2026. But the reality is that homeownership has become out of reach for many and that comes with a lot of disappointment. But it also comes with significant downstream impact. According to the November 2025 National Association of Realtors Profile of Home Buyers and Sellers, delayed or denied homeownership until age 40, instead of 30, can mean losing roughly $150,000 in equity on a typical starter home. Additionally:
- The November 2025 Profile of Home Buyers and Sellers from the National Association of Realtors shows that first-time homebuyers over the past year made up just 21 percent of the homebuying market—a new low since NAR began collecting data in 1981.
- The average age of first-time homebuyers has reached a new high of 40, up from 38 last year.
- The Harvard Joint Center for Housing Studies (JCHS) reports that between 2020 and 2025, home prices and mortgage rates have increased while incomes haven’t kept pace.
- Proposed GSEs loan targets for low and very-low-income borrowers have been reduced for 2026, which will limit access to homeownership.
- With NAR reporting in an article published in November 2025 entitled “Home Buyer Data Shows Urgency in Fight for Affordability”, the average homeowner’s wealth now 43 times that of a renter, the shrinking path to homeownership threatens the foundation of upward mobility itself.
Federal response will take time to implement
President Trump’s 50-year mortgage proposal, combined with FHFA Director Bill Pulte’s efforts to make the path to homeownership more affordable through alternative credit models, assumable mortgages and portable mortgages all reflect a growing urgency to address the challenges that are delaying homeownership and all its benefits for countless Americans.
However, these ideas are yet to be implemented.
How you can help clients become homeowners in 2026
For agents who want to help their clients realize their dreams of becoming a homeowner in 2026, it’s time to think outside the box – by thinking outside the ZIP code. Here’s how:
1. Help clients think differently about their dream ZIP code
“Entry level homes” exist for a reason. It may not be your dream house, but you are able to begin the process of gaining equity and appreciation. Coupled with salary increases and promotions, the opportunity to move up down the line exists. It beats paying rent.
- Trade price for commute. Look at homes farther out from your desired ZIP code. Think of the longer commute as a financial investment in home equity.
- Approach school districts with an eye on the future. The “higher-rated” schools may be more important in high school and middle school. Meanwhile, you are building equity in a good/OK school district that can help you move up later.
- Consider a condo or townhome. In many markets, there is greater inventory in this segment. And they are typically less expensive than single-family homes.
Agents obviously want to do deals in higher-priced markets, but if you can’t get listings in these ZIP codes, you’re not making any money. So why not consider more affordable markets: brand name versus store brand.
2. Normalize and encourage relocation to affordable area out-of-market
Real estate agents can elevate their role as a trusted local advisor by bringing their fact-finding with new clients to new levels. How? By suggesting out-of-market moves to better align with client homeownership goals.
According to NAR’s 2024 Migration Trends Report, agents know that the primary drivers for domestic moves include the need for housing (42 percent), family (26 percent) and employment (16 percent). Many people move to be near jobs – remote work has opened up more markets for these workers, so agents should bring up the option of moving out of market to capitalize on this new workplace option.
Even more people are moving so they can be close to their family. If this is a driver for your client, challenge them to think outside the box by thinking even further outside the ZIP code. Encourage them to discuss with their extended family the idea of a family move. Present the growing trend of multigenerational living: 14 percent of homebuyers in 2025 were multigenerational according to NAR’s Profile of Home Buyers and Sellers from November 2025.
Taking this a step further, agents can suggest the idea of a joint mortgage between families who are co-borrowers. Another NAR report also states that more than one in four multigenerational homebuyers have three or more people contributing to the household income, compared to just 11 percent of traditional homebuyers.
3. Know where to go
When agents are affiliated with a national network, the ability to earn referral fees by connecting their local clients to a trusted colleague out of market is much easier. Agents willing to introduce these referral fees into their income streams should be well versed in providing counsel to their clients on which markets align with their goals.
For instance, NAR’s Migration Trends Report identified a notable trend of people moving from the Northeast and West to states in the South and Midwest, such as Florida, Texas and the Carolinas. When you look at NAR’s Median Prices by region, you can understand why:
- West: $605,600
- Northeast: $496,700
- South: $360,200
- Midwest: $306,000
So that means, a good place to start when thinking about an out-of-market move is price.
Another great NAR resource is their quarterly report ranking the Median Sales Price of Existing Single-Family Homes for Metropolitan Areas, close to 400 in total.
Many “Best of” lists are out there, such as US News and World Report’s “2025-2026 Best Affordable Places to Live,” which look at a variety of factors, not just price. Examples include:
- Home insurance premiums, which are rising and not just in areas affected by floods and wildfires
- Access to health care, which could be important for retirees moving with their children’s families
- Diversity and equity, which can influence how accepted and safe people feel in the community
- Property taxes
- Schools
4. Outside-the-box thinking isn’t just smart. It’s a financial imperative
Agents need to emphasize the fact that homes are still appreciating, just not as fast. That means buying property is still a good investment. They can back this up with data:
- According to NAR, the national median single-family existing-home price grew 1.7 percent year over year to $426,800 – the same annual growth rate recorded in the second quarter.
- Areas where there is a lot of new housing development are seeing smaller gains right now due to a larger inventory pool, but that will likely change in the coming years. That means people who move to more affordable markets in the South and Midwest will still be gaining home equity.
- People and businesses are moving to the South in record numbers due to lower taxes, more affordable housing and a generally lower cost of living compared to the Northeast. With the influx of new residents, developers have started building new homes to make housing options available.
- Moody’s Analytics chief economist Mark Zandi projects U.S. home prices will rise roughly in line with inflation over the next decade.
With affordability continuing to challenge first-time buyers, agents can stand out by helping clients think creatively about what’s possible. But first, agents need to believe in the value of having outside-the-box conversations.
While it may seem counterintuitive to suggest alternative solutions to clients who are set on what they want, positioning yourself as a professional committed to making homeownership a reality, not just a dream, is a great way to win in 2026.
Alex Vidal is the president of ERA Real Estate.
