2026 Outlook: Community Associations Poised for Continued Growth Amid Stabilizing Housing Market

The 2026 housing market is expected to build on the gradual stabilization that began in 2025, with improvements in inventory, sales activity, and affordability indicators. While mortgage rate movements remain a key variable, most forecasters anticipate continued moderation and greater market balance. Despite broader economic uncertainties, the community association housing sector is projected to remain resilient and continues to be a preferred choice for millions of Americans.

Key Trends to Watch in 2026

Rising Inventory Levels
Most economic and housing analysts expect housing inventory to increase again in 2026, supported by steady new construction activity and more homeowners listing properties as mortgage-rate lock-in pressures ease.

Continued Recovery in Home Sales
Sales activity is expected to strengthen following the improvements seen in 2025, as affordability gradually improves and buyers return to the market.

Modest Price Appreciation
National home prices are projected to grow 2–3%, reflecting a more balanced market and slower inflation in the housing sector.

More Predictable Mortgage Rates
Mortgage rates are expected to continue stabilizing, with some forecasts projecting a shift toward the mid-5% range by late 2026.

Sustained Construction Activity
New housing construction is anticipated to remain close to long-term historical norms. While not expected to fully resolve the national supply shortage, continued building will help ease inventory pressures, especially in high-growth regions.

Stability in the Community Association Market

Despite broader economic or geopolitical volatility, community associations continue to draw buyers thanks to their amenities, predictable governance, and emphasis on community standards. Whether buying newly constructed homes or existing properties, many Americans continue to prioritize the benefits these communities offer.

Community Association Living

Since the 1970s, community associations have expanded rapidly, particularly among condominium and townhome buyers seeking proximity to job centers, schools, and transit. Planned communities also enable municipalities to transfer costs for services such as:

• trash and recycling
• stormwater infrastructure
• snow removal
• roadway and sidewalk maintenance
• shared amenities

This model allows for sustainable growth without significant taxpayer expansion.

Insights from the Homeowner Satisfaction Survey

The 2024 Homeowner Satisfaction Survey, conducted biennially by Zogby Analytics for the Foundation, continues to show strong positive experiences among association residents:

• 86% rate their overall experience as very good, good, or neutral
• 82% say their elected board serves the community’s best interests
• 72% say their community manager provides value
• 87% say association rules protect or have no effect on property values

For more community association statistics, visit the Community Association Fact Book.