Labeled a “transition” year for the housing market, 2026 will continue to shift and grow as it did at the beginning of 2025. To be successful against the grain of change, real estate professionals must be aware of the many continuing trends and challenges.
Cotality’s latest report details several of the key trends real estate professionals should know about the housing market based on how 2025 ended and how 2026 has kicked off.
The data company noted that in 2025 “price growth cooled, regional performance diverged and demand recalibrated amid shifting costs and credit conditions.”
“Strong home prices in parts of the Northeast and Midwest contrasted with pronounced softening in Florida and Texas, and some large metros show large slowdowns,” the report stated. “Affordability remains a central pressure point—only about half of U.S. metros are still affordable when taxes and insurance are added, and reconstruction costs rising far faster than general inflation.”
Here is what Cotality detailed as key trends to know about the 2026 housing market so far:
- Home-price growth
Home-price growth started a trend of deceleration in 2025, but Cotality noted that there have been widening gaps regionally. Both the latest Case-Shiller and Federal Housing Finance Agency House Price Indexes observed the national deceleration, but saw some mixed regional results as some saw distinct upward movement and others saw minor declines.
“Looking to 2026, we expect easing mortgage rates and improving affordability to revive buyer activity, though tight inventory will keep competition elevated in many desirable areas,” the report stated.
- Institutional investors
The order from President Trump to ban institutional investors from buying single-family homes has been a hot topic in the housing market, as many consumers have previously expressed concern that this is an affordability barrier.
Cotality reported, however, that data shows the effect of this order would be “modest.” Data from the company shows investors only buy about 3% of single‑family homes, “meaning a ban would barely shift supply.”
“The market dynamics would also remain unchanged because the proposal doesn’t require investors to sell existing homes,” as stated in the report. “Banning these buyers could also reduce rental availability for families who aren’t ready to purchase.”
- Rent growth
Following the trend of home-price growth, rent growth has also been decelerating. Cotality stated that rent growth has fallen to 15-year lows, only hitting a 1.1% year-over-year increase in the latest November report. The slowdown has also been widespread, reaching 43 of the 50 largest metros, with an additional 16 seeing outright decreases. Cotality also noted that this has spread into the higher-end market.
- All-cash buyers
All-cash buyers have had a distinct advantage in the housing market over the past few years, beating out many trying to secure financing. Cotality noted in its report that these buyers have also been securing serious discounts as of late—up to 9% in 2025, compared to 4% in 2021. This is due to the speed and security at which all-cash buyers are able to move when offering on a house, making a more “sure-thing” for sellers.
“This will speed up the affordability crisis—as cash buyers have an advantage over financed buyers who will have to stretch their budgets and bid higher to purchase a new home,” said the report.
- Affordability
Affordability continues to vary significantly across the country, and remains challenged. Cotality stated that as of 2025, only 56% of metros were still affordable to the median household (including taxes and insurance).
A “squeeze” in escrow has also contributed to the problem, as in many markets, Cotality stated that escrow costs can make up more than 40% of the monthly payment. From 2015 to 2025, there was a 40% drop in the number of markets marked as affordable (354 markets to 212), with high affordability markets shrinking from 41 markets to four.
“As a result, high non‑mortgage costs make owning a home less affordable and put families at risk if their monthly payments suddenly jump,” the report stated.
- Residential reconstruction costs
Residential reconstruction costs have been outpacing inflation growth in recent years due to increased material prices, a trend continuing through 2025 into 2026. Recently, Cotality saw these costs grow 6.6% year-over-year, which is more than double inflation’s growth rate. This “potentially (creates) coverage gaps for homeowners,” the report noted.
