2026 Housing Market Forecast: Affordability Is Improving in Columbia, SC

Columbia, SC Housing Market Forecast 2026 | What Buyers & Sellers Should Expect

Wondering what to expect from the housing market in 2026? You’re not alone. Over the past few years, affordability has been the biggest hurdle standing between many Columbia-area buyers and their next move, while some homeowners have delayed selling, waiting for conditions to improve.

The good news? Improvement is already underway — and experts expect that momentum to continue through 2026.

In fact, 2025 marked the most affordable housing conditions we’ve seen in roughly three years, and forecasts suggest 2026 will bring even more balance. That outlook is based on three major factors shaping the year ahead: mortgage rates, housing inventory, and home prices.

Mortgage Rates: Lower Than Last Year, Likely to Stay Steady

Mortgage rates have already come down from their recent highs, with expert forecasts expected to sit around the low 6% range in 2026.

Where mortgage rates go next will depend on the broader economy, job growth, and future policy decisions — but the key takeaway is this: rates are already meaningfully lower than they were a year ago.

What this means in Columbia, SC:

For buyers: Lower rates stretch your buying power further — especially important if you’re looking in neighborhoods like Irmo, Lexington, or Northeast Columbia where price points vary widely.
For sellers: Rates in the 6s may be the new normal for a while — but if you’re moving with equity in hand, it’s still an achievable market.

Even More Housing Options Are on the Way

One of the biggest stories in housing has been inventory. According to Realtor.com, existing home inventory is projected to grow by nearly 9% in 2026, continuing the trend of rising supply after multiple years of tight conditions.

For buyers, this inventory growth gives them...

More homes to choose from
More time to consider options
More negotiating leverage

For sellers, this means building a smart pricing strategy is essential — homes priced right in Columbia’s market still sell, and balanced inventory means buyers won’t feel rushed to compromise.

Home Price Growth Is Slowing to a More Sustainable Pace

As inventory improves, price growth naturally cools — and that’s exactly what national forecasts are calling for in 2026.

Realtor.com’s forecast projects modest national home price growth (about 2.2% in 2026), a much more sustainable pace compared to recent years. Zillow economists also expect slight increases in home sales and modest price growth next year, driven by improved affordability.

On average, experts say prices will rise by 1.6% in 2026 (see graph below):

Why local data matters:
Columbia’s typical home values have been relatively steady, reflecting affordability and moderate growth compared to national trends.

This slightly slower price growth offers a benefit to both sides of the market:

Buyers: More predictability and fewer surprise price spikes
Sellers: Continued equity gains without the volatility of past boom years

More Homes Will Sell

When you combine steadier mortgage rates, growing inventory, and moderate price growth, you have the conditions for more transactions in 2026.

National forecasts point toward gradually rising home sales next year, with buyers returning to the market as affordability improves.

Here in the Columbia area, mixed trends — including steady sales volume and balanced listings — suggest a healthier pace of homebuying and selling compared to the slowdowns of recent years.

What This Means For You

Affordability won’t change overnight, but with several trends coming together, 2026 looks to bring a more balanced and predictable housing market for both buyers and sellers in Columbia, SC.

Buying or selling a home is about more than numbers — it’s about your life, your family, and your plans for the future. Our goal is to provide helpful guidance and clear information so you can make decisions with confidence. Whether it’s your first home, your next move, or an investment property, we’re here to share what we know about the Columbia area and help you navigate the process thoughtfully.