One of the most anticipated sessions at the 2026 Market Outlook brought leading housing and market professionals together for a conversation on affordability, supply, policy and the evolving role of REALTORS®.
Moderated by Dennis Rodkin, Senior Reporter for Residential Real Estate at Crain’s Chicago Business, the panel featured Adrian Brizuela, Associate Director of Market Analytics at CoStar, and Dr. Lawrence Yun, Chief Economist for the National Association of REALTORS®.
Together, they addressed timely questions submitted by REALTORS®, offering clarity on what’s changing and what remains foundational as the market moves toward recovery. Review key session takeaways below.
Affordability Depends on Demand and Supply
A recurring theme throughout the discussion was that affordability challenges cannot be solved by demand alone. While lower mortgage rates and expanded access to financing can help buyers, the panel emphasized that sustainable affordability requires more housing supply.
The economists pointed to the need for:
- More flexibility in zoning and density
- Incentives that make residential construction financially viable
- Creative reuse of underutilized properties
Without additional supply, efforts to increase demand risk pushing prices higher rather than improving access.
Why Capital Gains Reform Matters to Housing Mobility
One policy issue surfaced repeatedly as especially relevant to REALTORS® and their clients: capital gains exemptions on home sales.
Panelists noted that the existing thresholds have not kept pace with decades of increasing home prices. As a result, some homeowners are choosing not to sell after consulting with tax advisors — limiting inventory and reducing mobility.
For REALTORS®, this issue directly affects:
- Listing decisions
- Downsizing and move-up opportunities
- Inventory flow across price points
It’s one of the clearest examples of how federal policy can ripple through local housing markets.
Mortgage Innovation: Helpful, But Not a Cure-All
Questions around extended mortgage terms, portable mortgages and adjustable-rate products prompted nuanced responses from the panel.
While these tools may help certain buyers qualify, particularly in high-cost environments, the economists agreed they are incremental solutions, not structural fixes. Long-term affordability still hinges on supply, income growth and responsible underwriting.
For REALTORS®, the takeaway is to treat these options as case-specific tools, not broad market solutions.
Rental Demand, Homeownership & the Path Back
The panel acknowledged that elevated mortgage rates over the past several years have pushed more households toward renting, contributing to strong rental demand.
However, the consensus view was that this trend is reversible. As mortgage rates ease and inventory improves, many renters are expected to re-enter the ownership market, reinforcing the importance of preparing for renewed buyer activity.
AI, Technology & THE REALTOR® IMPACT
Despite rapid advances in technology, the panelists agreed on one point unequivocally: consumers continue to rely on real estate professionals for guidance, protection and expertise, especially in high-stakes transactions.
AI may help buyers and sellers run scenarios or organize information, but it does not replace:
- Contract expertise
- Risk mitigation
- Local market judgment
What This Means for Chicago REALTORS®
The economist Q&A reinforced that today’s market requires REALTORS® to be both well-informed and adaptable. Understanding how policy, supply, financing and technology intersect allows REALTORS® to guide clients confidently during periods of transition.