BLOG - January 27th, 2026
In early January, I attended the Economic Forecast: Construction & Real Estate Housing Market 2026 presented by Dr. Elliot Eisenberg, Ph.D. The event was organized by the Salt Lake Home Builders Association and the Utah Valley Home Builders Association at the Zions Bancorporation’s Midvale Technology Center. Dr. Eisenberg is a renowned expert on the national and global housing market and a former senior economist at the National Association of Home Builders.
Dr. Eisenberg's 2026 housing market forecast was more optimistic than I expected, given the Federal Reserve and the current administration's efforts to balance high rates and inflation.
The professor explained that several positive factors are affecting the housing market economy, with artificial intelligence (AI) being the most significant. AI has played a substantial role in supporting the economy in recent years, as more and more investment is being driven into this industry. I remember someone in the audience asking Dr. Eisenberg whether AI could become a financial bubble, and he explained that it most likely wouldn’t because of its many applications in high-demand fields.
Consumer spending has also increased gradually over the last year and is expected to continue growing as 2026 unfolds. The current administration is advocating for cutting the interest rates to stimulate the economy and gain political popularity. Once the Federal Reserve administration passes to new hands this year, its motivations will change, likely pushing the economy into a stronger production phase. This trend is also reflected in the stock market, which continues to grow each day, signaling a stronger economy.
I found Dr. Elliot Eisenberg’s analysis on housing inventory and mortgage applications particularly insightful. It shows that even as consumer spending is increasing, most Americans are choosing not to sell their homes, as doing so would expose them to higher interest rates and higher prices. Based on this study, homeowners who bought their homes at low interest rates in the past are unlikely to sell them now and more likely to retire in their current homes. While this is not an ideal situation for builders focused on new construction, it is an attractive opportunity for those focused on remodels and additions. At this moment, most homeowners would prefer to invest in their current home and make it their own rather than sell it. Everyone has different motivations for buying or selling a house, but this applies to most of us.
After hearing Dr. Eisenberg’s economic forecast for the 2026 housing market, I am optimistic that the economy will do well in the near future. AI, consumer spending, the stock market, and emerging technologies are all positive signs. However, cautiousness is important, as these trends could lead to higher prices and inflation, turning housing unaffordable for most people. To support homeownership, it is crucial that salaries and wages increase this year, giving Americans the purchasing power needed to buy a home and stimulate the housing market.