2026 Real Estate Forecast: Three Potential Trends
How do you measure a year? For Real Estate, the year has been marked with uncertainty. The government shutdown, rising inflation, and heightened mortgage rates made industry professionals uneasy while affordability remained a key concern for many Americans. I recommend that potential buyers and sellers consider the following three potential trends in planning for 2026:
Mortgage rates may continue to decrease, although more slowly than hoped. On December 10, 2025, the Federal Reserve Bank announced a decrease in the nation’s interest rates by 25 basis points. This decrease is the Fed’s third consecutive rate cut. In discussing the cut, Chairman Jerome Powell expressly referenced the residential real estate market’s activity, noting it as “weak.” Many home buyers have struggled to enter or remain in the housing market, given the recent significant increase in mortgage rates (as compared with pre-pandemic levels). Nonetheless, the market reflects a slight decrease in mortgage rates as of year-end, which could help with entry or remaining in the market in 2026, assuming no further economic volatility (i.e., international or domestic) occurs.
Demand for multifamily housing may continue to increase. As noted above, the cost of becoming or remaining a homeowner has been cost-prohibitive for many, while a national housing shortage remains. Therefore, demand for apartments and multifamily housing is likely to remain high in 2026, with rents expected to increase.
Commercial development will continue to be affected by tariff-related uncertainty. The Trump Administration started off 2025 with stiff and punitive tariffs that impacted the ability of retailers to sell products and expand brick-and-mortar presence this year. President Trump’s recent announcement of “Farm Aid” and other tariff-related relief measures have not been accompanied by a commitment to roll back tariffs. As such, retailers’ ability and desire to use storefronts will likely be affected, impacting the Commercial Real Estate industry.
Theodora Stringham focuses her practice on bringing solutions-oriented representation and zealous advocacy to complex issues impacting individuals, organizations, and businesses. Ms. Stringham seeks to understand clients’ concerns and provide thorough and strategic options aimed at achieving their goals. She has been recognized for her work in the Real Estate, Labor and Employment, and Commercial Litigation practice areas, providing counseling and litigation support for a wide variety of concerns.