Transaction activity in the U.S. single-family housing market remains subdued as homeowners continue to hold onto low-rate mortgages, according to MetLife Investment Management. The firm said the ongoing “lock-in” effect has discouraged selling activity, while a softer labor market also has weighed on homebuying demand.
As a result of constrained transaction volumes, MetLife Investment Management expects U.S. home values to rise a modest 0.5 percent in 2026. However, the firm noted that declining construction starts are expected to provide additional support for home prices in 2027 and 2028 as new supply remains limited.
MetLife Investment Management said the broader housing recovery has been uneven, with the performance gap between stronger and weaker property types and markets likely to widen further in 2026. Housing-market performance is also expected to vary significantly by region, with the Midwest and Northeast projected to post the strongest home-price growt
