The 2026 Housing Market Forecast

🎙️ Episode Summary

In this episode of the Anderson Business Advisors Podcast, host Toby Mathis speaks with Neal Bawa about the real estate outlook for 2026. Neal explains that multifamily prices dropped 20–30% after the 2022 peak, while single-family homes remained resilient due to homeowners locked into ultra-low mortgage rates. He expects 2026 to be a transitional year with weak rent growth early on due to excess supply, but improving conditions later in the year. Looking ahead, reduced construction today could lead to a rental supply shortage in 2027–2028, which may push rents higher and create new investment opportunities.

🔑 Key Takeaways

• 📉 Multifamily prices corrected
  Apartment values have fallen 20–30% since 2022, creating potential buying opportunities.
  
• 🏠 Single-family homes stayed strong
  Low mortgage rates locked homeowners into place, preventing the price declines many expected.
• 📦 Supply pressure in 2026
  A wave of new apartment deliveries is keeping rent growth weak in early 2026.
• 📈 Rents likely rise after 2026
  As new supply gets absorbed, rent growth should accelerate into 2027–2028.
• 💡 Investor sentiment matters
  Negative sentiment around multifamily has reduced competition, which could create opportunities for investors entering the market now.