Homeowners are tapping equity faster than they have in five years. 47 billion dollars in just one quarter, the most since 2021. The reason is simple. People who locked in those rock bottom mortgage rates don’t want to let them go, so they’re borrowing against their homes and staying put instead of selling. That keeps inventory tight and prices high, and it’s a big reason the market feels stuck.

Out west, California’s new budget protected nearly a billion dollars for homelessness grants and another half billion for affordable housing tax credits, even in a tough budget year. And the affordability map keeps shifting. Indiana just took the number one spot in Realtor.com’s 2026 report card while New York and California flunked with F grades. The Midwest and South are winning buyers the coasts are losing.

Which of these three hits the housing market hardest?