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Redfin is forecasting a “Great Housing Reset” in 2026—marking a slow, steady shift toward improved housing affordability and a market environment that could significantly benefit the remodeling and renovation sectors.
Rather than a sharp housing correction, the online real estate brokerage predicts modest home-price growth combined with stronger wage gains and slightly lower mortgage rates. While these changes may only gradually bring buyers back into the market, they are expected to accelerate a key trend for the building products industry: homeowners choosing to remodel instead of move.
Redfin projects mortgage refinance activity to jump more than 30 percent in 2026, opening the door for more homeowners to tap into home equity to fund renovation projects. With many homeowners sitting on substantial equity, remodeling kitchens, baths, closets, and living spaces is expected to remain a more cost-effective alternative to purchasing a new home.
The report also points to continued growth in multigenerational living, driving demand for home additions, flexible layouts, and separate living suites. These trends are expected to increase demand for cabinetry, surfaces, storage systems, and space-optimizing solutions—particularly in kitchens, bathrooms, and secondary living areas.
In addition, rising apartment demand and modest rent growth could support continued investment in multifamily upgrades, while climate-driven migration and regional shifts may fuel renovation activity in more affordable and climate-resilient markets.
Overall, Redfin’s outlook suggests 2026 will favor steady, renovation-driven growth, reinforcing the importance of remodeling, retrofitting, and value-added interior upgrades for manufacturers, fabricators, and suppliers across the surface and panel industry.
View Redfin’s full 2026 housing market predictions report here.
