Brevard County Housing Market 2026 Outlook
The Brevard County housing market in 2026 is shaping up to be more stable than many expected. After a year of cautious optimism in 2025, trends in inflation, mortgage rates, inventory, and affordability point toward a market that is adjusting — not collapsing.
By understanding what actually happened in 2025, buyers and homeowners can better prepare for what may come next across Florida’s Space Coast.
Inflation Remains a Key Driver
Inflation continued to cool in 2025, though not dramatically. Mortgage rates started the year averaging around the mid-6% range and gradually improved as inflation pressures eased.
Inflation still matters because lenders and investors demand returns that exceed inflation. When inflation runs higher, mortgage rates typically follow. Energy prices played a key role in keeping inflation from rising further, helping offset concerns around tariffs and global trade costs.
Looking ahead to 2026, inflation is expected to remain a major factor, but employment trends may take on a larger role as technology and automation impact the labor market.
Mortgage Rates in 2026: Cautious Optimism
Mortgage rates are not directly controlled by the Federal Reserve. Instead, they are driven by the mortgage-backed securities market, which often prices in expectations before the Fed makes any move.
In 2025, rates largely stayed in the sixes and sevens, with brief dips depending on loan type and timing. For 2026, the outlook is cautiously optimistic. If economic data continues to improve — especially inflation and employment — mortgage rates could settle more consistently in the mid-5% to low-6% range.
A return to the historically low rates of the early 2020s is unlikely, but modest improvement remains possible.
Inventory Increased — But Prices Didn’t Fall
Housing inventory improved in 2025, but that did not translate into widespread price declines. The market spent years under-supplied, and much of the added inventory simply filled that gap.
Many homeowners remain locked into low mortgage rates and are hesitant to sell, keeping supply constrained. While some neighborhoods experienced small price adjustments, demand remained strong overall.
Builders have increased production, but the long-term housing shortage created after 2008 has not been fully resolved. Demographics alone suggest continued need for housing across Florida.
What This Means for Home Prices
Flat pricing in 2025 demonstrated market resilience. Even with higher rates, home values largely held steady.
For 2026, expectations point toward stable prices or modest growth. In Florida, home prices may rise approximately 2% to 5%, with variation by neighborhood and property type. Nationally, growth is expected to be flat to slightly positive.
Rising loan limits from major mortgage agencies also signal confidence in home price stability.
Affordability: Modest Improvement, Lingering Challenges
Affordability improved slightly in 2025 as mortgage rates eased, but Florida homeowners continue to face pressure from insurance and property taxes.
Monthly housing costs are driven by more than just interest rates. Insurance premiums, taxes, mortgage insurance, and HOA fees all play a role. Any improvement in insurance costs or property tax reform could meaningfully impact affordability in 2026.
Even stabilization — rather than reduction — would be a positive step for buyers.
Final Takeaway for Brevard County Buyers and Homeowners
The Brevard County housing market in 2026 is expected to remain balanced and resilient. While dramatic shifts are unlikely, modest improvements in rates and affordability could create opportunities for buyers who stay informed and plan carefully.
The market is no longer about timing a crash or chasing historic lows — it’s about strategy, preparation, and understanding how the pieces fit together.
Have questions about buying, selling, or refinancing in 2026? CLICK HERE to talk through your options.
