Real estate is land and any permanent structures attached to it — including houses, condos, apartment buildings, commercial properties, and raw land. Residential real estate (single-family homes, condos, townhouses, multifamily buildings) is distinct from commercial real estate (offices, retail, industrial). In the US, real estate is the largest asset class, with a total residential market value of approximately $45 trillion in 2026.

What is the median home price in the US in 2026?

The median US home price in 2026 is approximately $420,000 according to NAR data. Prices vary widely by location — from under $160,000 in West Virginia and Mississippi to over $800,000 in Hawaii and coastal California. The national homeownership rate is approximately 65%.

How much does it cost to buy a house in 2026?

Beyond the purchase price, buying a home costs 2%–5% of the price in closing costs ($8,400–$21,000 on a $420,000 home). You also need a down payment (3%–20%+), moving costs ($1,000–$5,000), and cash reserves for repairs. Total upfront cash needed on a $420,000 home with 10% down is typically $55,000–$75,000.

How much do real estate agents charge in 2026?

Following the 2024 NAR settlement, real estate commissions are fully negotiable. Listing agents typically charge 2%–3% of the sale price. Buyer agent compensation, formerly bundled into seller costs at 2.5%–3%, must now be negotiated separately. On a $420,000 home, total agent fees often run 3%–5% ($12,600–$21,000), down from the traditional 5%–6%.

What credit score do you need to buy a house?

The minimum credit score to buy a house depends on the loan type: FHA loans allow scores as low as 500 (with 10% down) or 580 (with 3.5% down). Conventional loans typically require 620+. For the best mortgage rates, aim for 740 or higher. In 2026, the average credit score of approved mortgage borrowers is approximately 730.

Real Estate Guide 2026: Buying, Selling & Types of Homes

Real estate is the biggest financial transaction most Americans will ever make. The median US home price in 2026 is $420,000 — and with mortgage rates, closing costs, commissions, and ongoing ownership costs, knowing how the process works before you start can save you tens of thousands of dollars.

The US Housing Market in 2026

Metric	2026 Figure
Median home price (US)	$420,000
Average 30-year mortgage rate	~6.8%
Homeownership rate	~65%
Average time on market	55–75 days
Total homes sold annually	~4.1 million
Typical buyer down payment	13% (median)
Typical total closing costs	2%–5% of purchase price
Standard listing agent commission	2%–3% (post-NAR settlement)

Types of Residential Properties

Choosing the right property type is the first decision most buyers make. Each has distinct ownership rights, costs, and lifestyle trade-offs.

Single-Family Homes

A single-family home is a standalone structure on its own lot, owned outright by one owner. The owner controls both the interior and exterior. No shared walls, no HOA required (though some neighborhoods have one). Single-family homes make up about 65% of US housing stock and historically appreciate faster than attached properties.

Condos

A condo is an individually owned unit within a larger building or complex. You own the interior of your unit; the building, grounds, and common areas are owned collectively by all unit owners through a homeowners association (HOA). Monthly HOA fees average $300–$600 and cover maintenance, insurance, and amenities. Condos typically cost less than single-family homes in the same area.

Townhouses

A townhouse is a multi-story attached home that shares one or two walls with adjacent units. Unlike a condo, townhouse owners typically own both the interior and the land beneath their unit. Most townhouse communities have HOAs but with lower fees than condo buildings. Condos vs townhouses are often confused — the key difference is land ownership.

Duplexes and Multifamily Homes

A duplex has two separate units under one roof. A multi-family home has 2–4 units (still considered residential for mortgage purposes). Many buyers purchase multifamily properties to live in one unit and rent the others — offsetting their mortgage with rental income.

Manufactured and Modular Homes

Manufactured homes are built in a factory and placed on a lot. They cost significantly less per square foot ($60–$100/sq ft vs $150–$250+ for site-built), but financing can be more complex and appreciation is typically slower.

See the full guide: Types of Houses — Every Style and Property Type Explained

Buying a Home: The Process

Step 1: Know What You Can Afford

The 28/36 rule says to spend no more than 28% of gross monthly income on housing costs and no more than 36% on total debt. On a $90,000 salary ($7,500/month), maximum housing costs are $2,100/month — which supports roughly a $300,000 mortgage at 6.8%. Use our mortgage calculator to model payments.

Step 2: Get Pre-Approved

Mortgage pre-approval tells you exactly how much a lender will lend you, and sellers require it before accepting offers in most markets. Pre-approval requires W-2s, pay stubs, tax returns, and bank statements.

Step 3: Make an Offer

The National Association of Realtors’ 2024 settlement changed how buyer agent compensation works. Buyers must now sign a buyer agreement with their agent upfront specifying how the agent will be paid. Sellers no longer automatically cover buyer agent costs.

Step 4: Due Diligence

After an accepted offer: home inspection (~$400–$600), appraisal ($500–$800), title search, and finalizing your mortgage. A contingency clause lets you exit the contract if major problems are found.

Step 5: Closing

Closing costs average 2%–5% of the purchase price. They include lender fees, title insurance, prepaid interest, property taxes, and homeowner’s insurance. The national average is $6,000–$9,000.

Selling a Home: Key Numbers

Cost	Typical Range
Listing agent commission	2%–3% of sale price
Buyer agent compensation (if offered)	2%–2.5% of sale price
Seller closing costs	1%–3% of sale price
Pre-sale repairs and staging	$2,000–$10,000+
Transfer taxes	0%–2% (varies by state)
Total cost to sell	5%–9% of sale price

On a $420,000 home, total selling costs are typically $21,000–$37,800.

Real Estate Investment

Capital Gains Tax

Selling a home for a profit triggers capital gains taxes — but most sellers qualify for the primary residence exclusion: $250,000 tax-free gain for single filers, $500,000 for married couples filing jointly (must have lived there 2 of the last 5 years). Gains above the exclusion are taxed at long-term capital gains rates (0%, 15%, or 20%). See our full guide: Capital Gains Tax on Real Estate.

House Flipping

Flipping houses — buying, renovating, and reselling for a profit — requires significant capital, market knowledge, and renovation expertise. Average gross profit on a flip in 2026 is $67,000, but after renovation costs, financing, and taxes, net returns vary widely.

All Real Estate Articles

Types of Homes

Buying a Home

Selling a Home

Real Estate Concepts

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy