Norada Real Estate Investments

Housing Market Sees a Surprise Jump in Home Sales Despite Headwinds

by

The housing market showed a surprising burst of activity in November, with existing-home sales nudging up by a modest 0.5%. This small increase signals a potential shift in momentum, offering a glimmer of optimism for buyers and sellers alike.

Here's the bottom line: Existing-home sales saw a 0.5% increase in November, reaching a seasonally adjusted annual rate of 4.13 million units, according to the National Association of REALTORS® (NAR). It’s been a bit of a rollercoaster for the housing market lately, and this bit of good news is definitely something to pay attention to.

As someone who lives and breathes real estate, I’ve been watching these numbers closely. It feels like we’ve been in a bit of a holding pattern, with both buyers and sellers trying to figure out their next move. So, this uptick in November? It tells me that despite the challenges, people are still making the decision to buy and sell homes.

Housing Market Sees a Surprise Jump in Home Sales Despite Headwinds

What’s Driving This November Sales Boost?

The main engine behind this sales increase, according to NAR Chief Economist Lawrence Yun, is the dip in mortgage rates we saw this past autumn. When borrowing money to buy a home becomes a little cheaper, it opens the door for more people to make that big purchase. It's like a gentle nudge, making those monthly payments a bit more manageable.

  • Mortgage Rates Cool Down: The average 30-year fixed-rate mortgage in November was around 6.24%. That’s down from 6.81% a year ago, and even a hair less than the previous month. This is a significant factor. Lower rates mean buyers can potentially afford more house, or at least feel more comfortable with their monthly commitment.
  • Wage Growth Helping Affordability: Another positive sign is that wage growth is outpacing home price increases. This is a crucial point. It means that, on average, people are earning more relative to the cost of homes, which can make affording a place a little easier.

Inventory: A Bit of a Sticking Point

While sales went up, the number of homes available for sale (inventory) took a bit of a dive. It decreased by 5.9% from October, leaving us with 1.43 million units. This is equivalent to a 4.2-month supply, which is down from last month.

What does this mean? It suggests that more homes are selling faster than new ones are coming onto the market. This can lead to more competition among buyers, potentially driving up prices in some areas. Lawrence Yun’s point that “inventory growth is beginning to stall” is really important to note. When there aren't enough homes, it creates a seller's market, which can be tough for those looking to buy.

I see this firsthand. When a good property hits the market now, it often gets multiple offers and sells quickly. Homeowners who have equity are often sitting on their properties, enjoying the wealth they've built over the years, and might not feel the urgency to sell, especially during the winter months.

A Look Around the Country: Regional Differences

The housing market isn’t a one-size-fits-all situation. Different parts of the country are experiencing different trends:

  • Northeast and South See Sales Growth: Both the Northeast and the South reported increases in month-over-month sales. The Northeast saw a 4.1% jump, while the South saw a 1.1% increase. Year-over-year, sales were unchanged in these regions.
  • Midwest and West Show Declines: The Midwest experienced a 2.0% decrease in sales from October to November, and the West remained flat month-over-month, though down year-over-year.
  • Price Trends Vary:
    • The Northeast saw a 1.1% increase in median prices.
    • The Midwest saw a more significant 5.8% increase year-over-year in median prices.
    • The South also saw a modest 0.8% increase.
    • Interestingly, the West experienced a slight 0.9% decrease in its median price year-over-year, with the median price in November sitting at $618,900. This could be a very small sign of cooling in one of the traditionally hottest markets.

Here’s a quick rundown of the regional picture:

Region Month-over-Month Sales Change Year-over-Year Sales Change Median Price (Nov 2025) Year-over-Year Price Change
Northeast +4.1% Unchanged $480,800 +1.1%
Midwest -2.0% -3.0% $319,400 +5.8%
South +1.1% Unchanged $361,000 +0.8%
West 0.0% -1.3% $618,900 -0.9%

Single-Family Homes Still Leading the Pack

When we break down the sales by housing type, single-family homes continued to be the stronger segment. They saw a 0.8% increase in sales month-over-month. Condominiums and co-ops, on the other hand, saw a 2.6% decrease in sales, both month-over-month and year-over-year.

This trend aligns with what I often advise clients. Single-family homes offer more space and privacy, which are often highly sought after. While condos can be more affordable upfront, buyers need to factor in those monthly condo association fees, which are also rising and can add up. Remember, the median price for a condo was significantly lower than for a single-family home, but those ongoing fees are a crucial part of the total cost of ownership.

🏡 Which Rental Property Would YOU Invest In?

Lebanon, TN
🏠 Property: Wren Way Lot 420
🛏️ Beds/Baths: 3 Bed • 2 Bath • 1618 sqft
💰 Price: $349,900 | Rent: $2,100
📊 Cap Rate: 5.4% | NOI: $1,571
🏆 Neighborhood: A

VS

Jacksonville, FL
🏠 Property: Pangola Dr
🛏️ Beds/Baths: 4 Bed • 4 Bath • 2076 sqft
💰 Price: $411,900 | Rent: $2,498
📊 Cap Rate: 4.3% | NOI: $1,483
🏙️ Neighborhood: B-

Both properties are 2025 builds with strong cash flow potential. Which one fits YOUR investment strategy?

📈 Choose Your Winner & Contact Us Today!

Talk to a Norada investment counselor (No Obligation):

(800) 611-3060

Contact Us Now

 

Who’s Buying and How Are They Paying?

Let’s look at the buyers and their purchasing habits:

  • First-Time Buyers: The percentage of sales to first-time homebuyers remained steady at 30%. This is an important statistic because new homeowners are essential for a healthy market.
  • Cash Sales: Cash sales accounted for 27% of transactions, which is down slightly from the previous month but up from a year ago. This indicates that some buyers, perhaps those with significant equity or wealth, are still choosing to pay in cash.
  • Individual Investors: We saw an increase in sales to individual investors or second-home buyers, making up 18% of transactions. This suggests that some investors see opportunities in the market, perhaps anticipating future appreciation.
  • Distressed Sales: Thankfully, distressed sales (foreclosures and short sales) remain at historic lows, at just 2%. This is a very positive sign for the stability of the market, showing fewer people are in a situation where they are forced to sell their homes at a loss.

Time on Market: Things Are Slowing Down Slightly

Homes are staying on the market a bit longer. The median time on market was 36 days, which is up from 34 days last month and 32 days a year ago. This slight increase in how long homes are available might give buyers a little more breathing room to make decisions, but it’s still a relatively quick sales pace overall.

My Take on These Numbers

What I’m seeing here is a market that’s trying to find its footing. The lower mortgage rates have certainly provided a welcome boost. It’s encouraging to see sales tick up for three months straight. However, the tight inventory is a persistent challenge. If we don’t see more homes coming onto the market soon, it could put a damper on future sales growth, even with favorable mortgage rates.

The fact that wage growth is keeping pace with home prices is a critical piece of the affordability puzzle. This is what helps to keep the dream of homeownership alive for many. But we always have to be mindful of the balance. Too much of a price increase without corresponding wage growth can quickly make homes unaffordable again.

I think the November report gives us a nuanced picture. It’s not a runaway market, but it’s also not a market that’s collapsing. It’s a market that’s adapting, and where smart buyers and sellers can still find opportunities.

Looking Ahead

The housing market is always influenced by broader economic factors. Continued stability in mortgage rates and a healthy job market will be key to sustaining this positive sales trend. We also need to keep an eye on whether more homeowners will feel encouraged to list their properties as we move into the spring market.

Overall, the November numbers from NAR offer a reason for cautious optimism. The rise in sales, driven by more affordable borrowing costs, is a good sign, but the ongoing inventory constraints are definitely something to watch as we progress through the coming months.

2026 Housing Market for Investors

Analysts project steady growth in select U.S. markets, with affordability shifts and rental demand shaping investor strategies in 2026.

Norada Real Estate helps investors leverage turnkey rental properties to capture cash flow and appreciation—positioning portfolios for strength in the year ahead.

🔥 HOT 2026 INVESTOR LISTINGS JUST ADDED! 🔥
Talk to a Norada investment counselor today (No Obligation):
(800) 611-3060

Get Started Now

Want to Know More About the Housing Market Trends?

Explore these related articles for even more insights:

10 Housing Markets Predicted to See Rapid Price Decline in 2026

by

If you've been watching the housing market with a bit of worry, wondering when things might become more manageable for buyers, I have some good news. Based on the latest 2026 National Housing Forecast from Realtor.com®, several housing markets are expected to see their home price growth slow down considerably – or even dip – by 2026. This presents a significant opportunity for those looking to purchase a home.

10 Housing Markets Predicted to See Rapid Price Decline in 2026

For most of us, housing is the biggest purchase we'll ever make. It’s not just about a roof over our heads; it’s about building equity, creating a stable environment, and making an investment in our future. The wild ride of the past few years, with prices soaring at breakneck speed, has made that dream feel out of reach for many. But as we look ahead to 2026, a shift is on the horizon.

Nationally, Realtor.com® predicts a modest price increase of 2.2% year-over-year. While this is still growth, it’s a far cry from the double-digit leaps we’ve become accustomed to. What’s even more interesting is that this national picture masks some dramatic regional differences. In fact, nearly a quarter of the top 100 housing markets are expected to see actual price declines in 2026. This is where the real story lies for potential homebuyers.

Where the Price Slowdown is Hitting Hardest

It's not just a little cooling; some areas are looking at a significant shift. According to Realtor.com®'s forecast, the metros expected to experience the steepest drops in home price growth are largely clustered in coastal states. Florida takes a commanding lead with four metros in the top 10, while California follows with three. We're also seeing projections for softening prices in Raleigh, North Carolina, Spokane, Washington, and Denver, Colorado.

The Top Metros to See Price Growth Cool Fastest in 2026:

Metro 2026 Price Growth % YoY
Cape Coral, FL -10.2%
North Port, FL -8.9%
Stockton, CA -4.1%
Raleigh, NC -3.7%
Deltona, FL -3.6%
Tampa, FL -3.6%
Spokane, WA -3.5%
Denver, CO -3.4%
Sacramento, CA -3.3%
San Francisco, CA -2.5%

Source: Realtor.com® 2026 National Housing Forecast

You'll notice Cape Coral, Florida, stands out with a projected double-digit price growth plunge of 10.2% year-over-year. This isn't a complete surprise if you've been following real estate trends. A recent report from analytics firm Cotality already highlighted Cape Coral as having the largest annual home price decline in Florida and the second-largest nationwide back in September, dropping 7.1%.

North Port, Florida, another market flagged by Cotality for cooling, is anticipated to see the nation's second-biggest decrease in price growth at 8.9%.

Why the Cooling? A Closer Look at Florida

It seems Florida is ground zero for this market correction. Realtor.com®'s senior economic research analyst, Hannah Jones, points out that these metros have already seen prices slip from their pandemic highs. She notes that elevated home prices, coupled with rising insurance premiums and other carrying costs, are weighing down buyer demand.

In fact, Realtor.com® data shows that statewide median listing prices in Florida were down 6% in the first half of 2025 compared to the same period in 2023. A big part of this dip is due to plummeting condo prices. This is largely a result of new safety legislation passed after the Surfside tragedy, which mandated more funding for building maintenance and inspections. This has led to significant increases in homeowner association (HOA) special assessment fees, making condo ownership much more expensive.

Jones also explains that Florida experienced a massive influx of new residents during the pandemic, fueled by remote work opportunities. This surge in demand helped drive prices sky-high. However, now we're seeing a correction. Rising mortgage rates, the aforementioned insurance costs, and climate-related risks are making buyers more cautious. This caution is pushing some owners to list their homes, increasing supply and consequently easing price pressures.

Karen Borelli, president of the Royal Palm Coast Realtor® Association, echoes this sentiment for Cape Coral. She mentions that home prices there have already dropped by 5% to 10% in recent years. The forecast for further price growth declines in 2026 doesn't surprise her. She explained that during the COVID-19 pandemic, demand from people seeking sunshine pushed prices up by a staggering 65% to 70%. After Hurricane Ian, the market shifted, with more homes becoming available and sales slowing down. Like the rest of Florida, escalating insurance costs and elevated mortgage rates are making homeownership less affordable.

However, Borelli offers a hopeful note for buyers in Cape Coral. She anticipates that in 2026, buyers will find a larger selection of homes and potentially reduced prices, along with builder and seller incentives. She emphasizes that real estate markets move in cycles, and while demand pushes prices up, a shift in inventory and demand can lead to more balanced conditions.

It's also worth noting that Florida Governor Ron DeSantis has been pushing for the elimination of property taxes on owner-occupied homes. Borelli suggests that if this policy is enacted, it could significantly impact home values, potentially leading to a rapid increase.

Beyond the Sunshine State: Western Markets See a Correction

While Florida is a major focal point, the cooling trend isn't confined there. Several California markets are also predicted to experience significant drops in home price growth. Stockton, in the Central Valley, is projected to see a 4.1% dip in 2026, making it the largest decrease in California and the third-largest nationwide.

Other major California cities like Sacramento (projected 3.3% decrease) and the famously expensive San Francisco (projected 2.5% decrease) are also expected to see their appreciation rates slow down.

Hannah Jones from Realtor.com® explains that these Western metros are adjusting after years of rapid price gains. Just like in the South, stretched affordability is a key driver. High prices and the persistent drag of high mortgage rates are eating into buyer demand, leading to potential price softening.

In Denver, Colorado, the growth rate is expected to decrease by 3.4% next year. Heather O'Leary, a real estate agent at eXp Realtor, attributes this partly to an increase in multifamily housing within the metro area. These types of properties typically have lower price points, which can pull down the median home price even if overall values remain relatively stable.

O'Leary also points out that for many low-income households in Denver, renting is currently more affordable than buying. This dynamic reduces demand for entry-level homes and contributes to declining median prices. Shifting migration patterns, with people moving from Denver's urban core to surrounding counties for more space and newer homes, also play a role. This outward movement redistributes demand and can slightly cool prices in the core city.

Despite the projected 3.4% pullback in Denver, O'Leary views it as a normalization rather than a collapse. She highlights Denver's current 3.6-month supply of inventory, which signals a move towards a more balanced market. For buyers, this cooling trend, combined with higher inventory, could mean more choices and a stronger position to negotiate. O'Leary notes that even a slight easing of interest rates could significantly boost a buyer's purchasing power.

For sellers, the key in these markets will be strategic pricing from the outset. Listing too high could lead to homes sitting on the market longer and requiring deeper price cuts later on.

What This Means for You: Buyers Find Leverage, Sellers Need Realism

The takeaway from all this data, sourced from Realtor.com®, is that 2026 is shaping up to be a more favorable year for homebuyers in certain regions. As Hannah Jones puts it, “For buyers, these cooling markets offer more leverage: greater negotiating power, more inventory to choose from, and more sellers willing to offer concessions.”

This cooling doesn't necessarily mean a housing market crash. Instead, it signifies a return to a more sustainable pace after a period of unsustainable growth. For those who have been priced out or struggling to compete in bidding wars, this could be the moment to re-enter the market with more confidence.

For sellers, it’s crucial to be realistic. The days of expecting multiple offers far above asking price might be over in these specific markets. Understanding current market conditions, pricing your home competitively, and being open to negotiation will be key to a successful sale.

The housing market is always evolving, and understanding these projected shifts is vital for anyone looking to buy or sell in the coming years. By paying attention to forecasts like Realtor.com®'s, we can make more informed decisions and navigate the real estate journey with greater clarity.

2026 Housing Market Forecast for Investors

Most experts forecast steady but modest price growth, shifting affordability, and evolving rental demand in 2026—creating unique opportunities for each group.

Rising demand keeps rental markets competitive, but turnkey investors benefit from strong cash flow.

Norada Real Estate helps you navigate these shifts with fully managed rental properties—so whether you’re buying, selling, or renting, you can position yourself for success in 2026.

🔥 HOT NEW Investor Deals JUST ADDED! 🔥

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Want to Know More About the Housing Market Trends?

Explore these related articles for even more insights:

Housing Market Predictions 2026: No Crash, No Boom, Just Rebalancing

by

The U.S. housing market in 2026 isn't heading for a dramatic crash or a wild boom. Instead, expect a period of modest growth and gradual rebalancing. Think of it less like a rollercoaster and more like a steady climb, with some bumps along the way. This is good news for many of you who have been waiting on the sidelines, feeling that sense of uncertainty about where things are headed.

Housing Market Predictions 2026: No Crash, No Boom, Just Rebalancing

As we stand on the cusp of 2026, I've been looking at all the reports and talking to people who live and breathe real estate. It seems like the feverish pace of a few years ago has definitely cooled off. We aren't seeing the insane bidding wars or homes flying off the market in a day that we did during the pandemic. On the flip side, the fears of a massive drop in prices also seem overblown.

This is my take, based on what the experts are saying and what I've seen myself: the market is getting back to a more normal rhythm. Prices will likely inch up, and more homes will be sold, but it won't be a story of explosive gains or devastating losses.

What's Driving This Predictable Path?

So, what makes me confident in saying things will be relatively stable? It’s a combination of economic factors, availability of homes, and, of course, the cost of borrowing money.

  • Interest Rates: Still a Big Deal, but Getting BetterThe days of getting a mortgage for practically free are long gone, and honestly, they probably won't be back anytime soon. The experts are saying that the average 30-year fixed mortgage rate will hover around 6.3% in 2026. That’s down a bit from where we've been, which is something to celebrate. However, it's still significantly higher than the super-low rates we saw a few years ago. This higher cost of borrowing is a major reason why we won't see a boom. It makes buying a home more expensive, which naturally puts a brake on how high prices can go.I remember when getting a mortgage was practically like getting free money. Now, everyone has to factor in that monthly payment difference, and it adds up quickly. It's a big hurdle for many potential buyers.
  • More Homes for Sale, But Not Exactly OverflowingOne of the biggest headaches for buyers in recent years has been the lack of homes to choose from. Thankfully, that picture is improving. By 2026, we're expected to see the supply of homes for sale rise to about 4.6 months. This is a much healthier number than the 3-4 months we've been dealing with lately. Think of it this way: if no new homes were listed, it would take about 4.6 months to sell the ones that are currently available.With more homes on the market, sellers might have to be a little more patient and perhaps a bit more willing to negotiate. This extra supply is the main reason why sales numbers are expected to go up, possibly reaching around 4.2 million homes sold.
  • The Economy: Steady As She GoesThe overall health of the economy plays a huge role. For 2026, we're looking at pretty steady economic growth, with the Gross Domestic Product (GDP) expected to grow between 2% and 2.25%. The unemployment rate is predicted to be around 4.7%, which isn't bad at all. And inflation, while still a concern, is expected to settle down to somewhere between 2.3% and 3%.These numbers paint a picture of an economy that's not overheating, but also not collapsing. This kind of environment supports a stable housing market – no sudden shocks that would send prices soaring or crashing.

A Look at the Numbers: What the Experts Are Saying

U.S. Median Home Prices: Historical and Projected for 2026

To give you a clearer picture, let's break down some of the key predictions.

Factor Current (Late 2025 Estimate) Projected (2026) Key Takeaway
Home Price Change Slight Dip/Plateau +1% to +2.2% Modest, controlled growth, not a boom.
Home Sales Volume ~4.08 million 4.13-4.26 million Gradual increase, but still below pre-pandemic.
30-Year Mortgage Rate ~6.6% – 6.7% ~6.3% Still elevated, impacting affordability.
Inventory (Months) 3-4 months ~4.6 months Improving supply, easing buyer pressure.
GDP Growth – 2% – 2.25% Steady economic expansion.
Unemployment Rate – ~4.7% Healthy job market.
Inflation – 2.3% – 3% Cooling down, but still a factor.

As you can see, the numbers themselves tell a story of moderation. We're not entering a period of dramatic price drops like the 2006-2008 crash, nor are we looking at the double-digit percentage gains we saw from 2020-2022.

30-Year Fixed Mortgage Rates: Historical and Projected for 2026

Regional Differences: It's Not the Same Everywhere!

One of the most important things to remember is that the U.S. housing market is not one big, uniform blob. Where you are matters a lot.

  • Sun Belt Cooling Down: Places like Florida and Texas, which saw massive growth, might actually cool off a bit. Things like rising insurance costs (especially in Florida) and the fact that some areas might have built a bit too much could lead to slightly lower prices or slower growth.
  • Rust Belt Rising (Slowly): On the other hand, cities in the Rust Belt, areas like Cleveland and parts of the Midwest, could see steadier, more reliable gains. Why? Because they are more affordable and are seeing people move there for jobs and a lower cost of living.

Let's look at this in a table to make it super clear:

Region/Metro Projected Price Change (2026) Key Driver
Cleveland, OH +3% to +4% Affordability, job stability
Chicago, IL +2.5% Tight supply, urban revival
Miami, FL -2% to -3% Insurance hikes, hurricane risks
Austin, TX -1.5% Overbuilding, office returns
NYC Suburbs +2% Hybrid work migration
Los Angeles, CA Flat High costs, intra-metro shifts

This really shows that you can't just look at national numbers and expect them to apply to your backyard. The local economy, job market, and even things like climate and insurance costs play a huge role.

What About Potential Crashes or Booms?

While the general outlook is for stability, it's always wise to consider the “what ifs.”

  • When a Crash Could Happen (But Probably Won't Be Big):Honestly, a nationwide crash where prices drop by 10-20% seems pretty unlikely. We have much stronger protections in place now than we did back in 2008. For example, most homeowners have built up a lot of equity, which means they have a financial cushion. Also, the limited supply of homes helps keep prices from falling too low.However, there are a few things that could cause problems:
    • Job Losses: If the economy suddenly takes a nosedive and a lot of people lose their jobs, especially in high-paying sectors, demand for homes could drop fast.
    • Surprise Economic Shocks: Imagine if new trade disputes caused inflation to spike, forcing the Federal Reserve to raise interest rates even higher. That could really hurt the market.
    • Disasters: While more localized, things like a major hurricane or severe weather events that cause widespread damage and make insurance unaffordable could force some people to sell their homes at a loss.
  • When a Boom Might Happen (But It Will Be Gentle):A boom, meaning prices shooting up by 5% or more nationwide, also seems out of reach for 2026. The main reason for this is affordability. Even with slightly lower interest rates, buying a home is still a big financial jump for many people, especially younger generations.What could give the market a little extra boost?
    • Millennials and Gen Z Buying: As younger generations move into their prime home-buying years, there will naturally be more demand.
    • More Homes Being Built: If builders can find ways to offer incentives, like helping with mortgage rates, they might pick up the pace of construction, adding more homes to the market.
    • Investors: People and companies who buy homes to rent out are still active in the market, and their steady buying helps support prices.

The Big Picture: A Reset, Not a Revolution

To wrap things up, I don't see a housing market crash in 2026, and I don't see a wild boom either. What I do foresee is a reset. The market is moving towards a more balanced and sustainable path.

Affordability is slowly getting better, more homes are becoming available, and the economy is expected to chug along nicely. There will always be unexpected events, so it's wise to stay informed. But for now, the evidence points towards a housing market that is healing and moving forward at a steady pace.

For anyone who's been waiting to buy, patience might be rewarded with more choices and stable prices. For homeowners, your investment is likely to continue to hold its value, with modest growth expected. It's a market that's evolving, not exploding, and that's okay.

Want Stronger Returns? Invest Where the Housing Market’s Growing

Turnkey rental properties in fast-growing housing markets offer a powerful way to generate passive income with minimal hassle.

Work with Norada Real Estate to find stable, cash-flowing markets beyond the bubble zones—so you can build wealth without the risks of ultra-competitive areas.

🔥 HOT NEW LISTINGS JUST ADDED! 🔥

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Housing Market Predictions 2026: Fewer Homeowners Will See Negative Equity

by

If you're a homeowner feeling a bit uneasy about your home's value right now, you'll likely breathe a sigh of relief knowing that by 2026, it's predicted that fewer homeowners will owe more on their mortgage than their home is worth. This is great news, as it points towards a more stable and positive housing market for many across the country.

One of the biggest worries for homeowners, especially in recent times, has been the dreaded “negative equity” – often called being “underwater.” This is when your home's market value dips below what you still owe on your mortgage. It can feel like being stuck, making it tough to sell your house or refinance your loan. But, looking at the latest predictions from Zillow's economists, it seems like this particular headache is set to ease up significantly by 2026.

Housing Market Forecast 2026: Fewer Homeowners Will Fall Into Negative Equity

Why the Optimism for Homeowners?

The main reason for this shift is that home values are expected to firm up and grow, albeit modestly. Zillow is forecasting a 1.2% rise in home values nationwide in 2026. Now, that might not sound like a huge jump, but it's a crucial sign of the market finding its footing. Think of it like a boat that was rocking a bit too much; it's starting to settle into a more stable rhythm.

This gentle increase in home values means that fewer homeowners will find themselves owing more than their property is worth. In 2025, Zillow notes that about 24 of the largest housing markets were experiencing annual price declines. The good news is, their forecast for 2026 is that this number will be halved to just 12 major markets. This directly translates to fewer people falling into that underwater situation. For those of us who’ve seen our Zestimates dip, this offers a much-needed sense of comfort and security. Building equity, rather than losing it, is a cornerstone of homeownership.

What's Driving This Stability?

Several factors are working together to create this more positive outlook.

1. Improving Affordability: While mortgage rates are expected to stay above 6% (which is still higher than the pandemic lows we saw), they are predicted to moderate gradually. This, combined with incomes that are keeping pace with or even outpacing rent increases, means more people will have the financial breathing room to consider buying a home. When more people can afford to buy, demand goes up, and that helps support home prices.

2. More Homes for Sale (Sort Of): While new home construction is predicted to be slow, the number of existing home sales is expected to increase. Zillow projects 4.26 million existing home sales in 2026, a jump of 4.3% from the previous year. This tells me that pent-up demand, which has been building due to limited inventory and high rates, is starting to get released. People who have been waiting to move are starting to see their opportunity.

3. Renters Find Some Relief: This is a big one that often gets overlooked but directly impacts the housing market. Rent affordability is expected to improve for apartment dwellers. Zillow forecasts that multifamily rents will rise by a mere 0.3% in 2026. This is fantastic news for renters, giving their incomes a chance to catch up. When renting becomes more affordable, fewer people feel an urgent need to buy simply to escape skyrocketing rents, which can indirectly help stabilize the buying market.

My Thoughts on the Forecast

As someone who's spent a lot of time immersed in real estate discussions, I find this forecast to be one of the more realistic and encouraging ones I've seen in a while. It doesn't promise a boom, but rather a much-needed period of stability and recovery.

The emphasis on fewer homeowners falling into negative equity is particularly important. It signifies a market that isn't experiencing the kind of dramatic downturn that leaves people financially trapped. This suggests a healthier ecosystem where buyers can enter with more confidence and existing homeowners can feel more secure about their investment.

I also appreciate that Zillow isn't predicting a return to those super-low mortgage rates. It’s important to be realistic. Rates above 6% mean that careful budgeting is still essential for buyers. However, the prediction of gradual rate moderation is key. It’s about making the market accessible again, not about handing out ultra-cheap money.

Who Are the Homeowners of 2026?

It’s also worth noting the evolving profile of those looking to own a home and those choosing to rent. Zillow’s research highlights some interesting trends:

  • The “Lifestyle Renter”: A significant portion of Americans are now choosing to rent as a lifestyle choice. They value the mobility, lack of maintenance headaches, and flexibility that renting offers. This means the demand for rentals won't disappear, even if buying becomes more accessible.
  • Generations at Home: With more families renting, “kidfluence” is becoming a real factor in rental demand. Properties offering family-friendly amenities like play areas or study nooks will be in higher demand. This shows how personal needs are shaping housing choices.

What Buyers and Sellers Can Expect

For those looking to buy, 2026 seems to offer a bit more breathing room. You might face less competition for properties compared to peak frenzy times, and with prices stabilizing, you’ll have a clearer picture of what you can afford.

For sellers, this forecast suggests a market where your home is more likely to sell at a fair price. The days of needing to drastically slash prices to attract a buyer should become less common in most areas.

A Note on New Construction

It's interesting to see that new home construction is predicted to be at its slowest since before the pandemic. Builders are being cautious, likely due to the existing stock of homes and current economic conditions. This means that the market might continue to rely heavily on existing homes, which is why the increase in existing home sales is so important. Builders will likely continue to offer incentives to make their new homes appealing.

The Bottom Line

Overall, my take is that the housing market forecast for 2026, particularly from Zillow, points towards a period of healing and stabilization. The most significant takeaway for me is the projected decrease in homeowners falling into negative equity. This is a sign of a market that's moving away from potential distress and towards a more sustainable path. It’s not a market set for explosive growth, but rather one that offers more predictable conditions for both buyers and sellers.

Want Stronger Returns? Invest Where the Housing Market’s Growing

Turnkey rental properties in fast-growing housing markets offer a powerful way to generate passive income with minimal hassle.

Work with Norada Real Estate to find stable, cash-flowing markets beyond the bubble zones—so you can build wealth without the risks of ultra-competitive areas.

🔥 HOT NEW LISTINGS JUST ADDED! 🔥

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Also Read:

Multiple Florida Housing Markets Are on the Brink of a Crash in 2026

by

The question on everyone’s mind is: Will Florida’s housing market crash in 2026? Based on the latest insights from Cotality, five Florida housing markets are being closely watched for a potential significant dip in home prices. While a full-blown “crash” might be too strong a word for what I see happening, these areas are definitely experiencing a notable correction. Let me break down what this means for you, whether you're looking to buy, sell, or just curious about the Sunshine State's real estate scene.

Multiple Florida Housing Markets Are on the Brink of a Crash in 2026

Markets on the Radar: The Top 5 Florida Cities to Watch

Cotality has identified a list of markets with a very high risk of price decline within the top 100 largest metro areas in the U.S. Among these, five are nestled right here in Florida. These aren't just random picks; they are based on specific data that signals a cooling trend.

Here’s the list, according to Cotality’s analysis:

  1. Cape Coral, FL
  2. Fort Lauderdale, FL
  3. Lakeland, FL
  4. Palm Bay, FL
  5. West Palm Beach, FL

It's important to understand that “risk of price decline” doesn't automatically mean a catastrophic collapse. Instead, it suggests a period of adjustment where prices might see a significant pullback from their recent peaks. As a real estate professional who has navigated various market cycles, I can tell you that corrections are natural, especially after periods of rapid growth.

Why These Florida Markets? Unpacking the Trends

You might be wondering, what makes these particular cities stand out? The data paints a picture of markets that experienced significant growth during the pandemic-fueled boom and are now seeing a recalibration. Realtor.com's analysis, combined with insights from experts like Cara Ameer, a real estate broker at Coldwell Banker Vanguard Realty in Florida, and Karen Borrelli, president of Royal Palm Coast Realtor Association, helps us understand the driving forces.

The “Cooling” Trend: Florida Dominates the List

It's not just these five cities. In fact, the same report shows that seven of the top 10 coolest housing markets in the U.S. are in Florida. This “coolest” designation refers to markets experiencing the steepest home price declines.

Here are some of the cities mentioned in that report:

  • Cape Coral, FL (-7.1% year-over-year price decline)
  • Naples, FL (-6.7%)
  • Punta Gorda, FL (-6.2%)
  • Sebring, FL (-5.2%)
  • North Port, FL (-5.1%)
  • Brownsville, FL (-4.8%)
  • Sebastian, FL (-4.6%)

This widespread cooling across Florida suggests broader economic and demographic shifts at play, rather than isolated issues.

Cape Coral: A Case Study in Market Correction

Cape Coral, a city known for its extensive canal system, has been particularly highlighted. Its home prices have fallen significantly. According to Realtor.com's analysis of the latest data, the typical single-family home in Cape Coral sold for nearly 7% less in August 2025 compared to the previous year. Even more striking, compared to the pandemic boom era of August 2022, the median home sales price has dropped by over 13%. North Port has seen an even more dramatic long-term correction, with typical August 2025 home sales prices 20% less than three years prior.

What’s impacting Cape Coral?

  • Rising Costs: Higher interest rates, increasing insurance premiums, and climbing foreclosure rates are dampening buyer enthusiasm.
  • Insurance Woes: Being on the Gulf Coast makes cities like Cape Coral vulnerable to hurricanes and flooding. This leads to higher and harder-to-get homeowner's insurance. Cape Coral has the third-highest premium-to-market ratio in the nation at 2.2% – meaning a $350,000 home could cost $7,700 annually in insurance alone.
  • Foreclosures: ATTOM data from Q3 2025 showed Cape Coral having one of the highest foreclosure rates among major metros. While this number is up, local real estate professionals like Karen Borrelli caution against jumping to conclusions about a full-blown crisis.

Beyond Cape Coral: Common Themes

The challenges faced by Cape Coral – like rising insurance costs and the aftermath of a red-hot market – are not unique. Many coastal Florida markets are experiencing what experts call an overcorrection.

Cara Ameer points out that while Florida doesn't have state income tax, the savings are often overwhelmed by the rising costs of homeownership in these desirable but vulnerable areas, coupled with higher HOA and condo fees. This can make Florida feel “lopsided” in terms of property values.

The “Too High, Too Fast” Phenomenon

The general consensus from experts is that the pandemic market went up too high, too fast. This made homes unaffordable for many, leading to weakened demand and a necessary price correction. As Hannah Jones, senior economic research analyst at Realtor.com, puts it, this rebalancing is likely to continue until demand picks up enough to stabilize prices.

Is a “Crash” Imminent or a “Correction” Expected? My Take

As someone who lives and breathes real estate, I believe the term “crash” is often used to generate clicks and alarm. What we are more likely seeing is a market correction. Think of it like a stretched rubber band snapping back – not breaking, but returning to a more natural state.

The data from Cotality is valuable because it identifies areas showing the highest risk of price declines. This allows buyers to potentially find better deals and sellers to adjust their expectations.

Karen Borrelli’s perspective is crucial here: the cooling is primarily seen in pricing, not necessarily in the volume of sales. Buyers are still active, but they are shopping for better value. This means sellers who had unrealistic price expectations based on the pandemic frenzy might need to lower them to attract buyers. As Borrelli notes, it might actually be a really good time to buy in these markets if you find a property priced realistically.

What Does This Mean for the Future?

The outlook for these five Florida housing markets in 2026 isn't necessarily doomsday. Instead, it points to a market that is becoming more balanced and, frankly, healthier.

  • For Buyers: This could be an opportunity. With prices adjusting and some sellers becoming more motivated, you might be able to negotiate better terms. However, always factor in the rising costs of insurance and potential HOA fees, especially in coastal areas.
  • For Sellers: It's time to be realistic. Holding onto outdated pricing from 2021 or 2022 will likely result in your property sitting on the market. Pricing your home competitively based on current conditions and market comparable sales is key. Offering concessions can also help attract buyers. Some sellers, particularly in areas like Miami, have chosen to delist and wait for market conditions to improve.
  • For Investors: These markets might present opportunities for long-term investors looking for properties that will appreciate gradually rather than rapidly. It’s about finding value and understanding the local economic drivers beyond just tourism.

Looking Ahead: Stabilizing Prices vs. a Steep Decline

The critical question is whether these markets will stabilize or continue a steeper decline toward 2026. Based on the expert opinions and the data, the trend seems to be towards stabilization as prices rebalance.

  • Fundamentals Still Strong: In many Florida markets, the underlying fundamentals remain strong. People are attracted to the lifestyle, climate, and, for some, the lack of state income tax.
  • Demand Re-emerging: As prices become more affordable due to the correction, demand is likely to pick up again, creating a more stable environment. Borrelli believes we are approaching a point where the value proposition for houses in these areas is becoming clear, which should lead to steadier prices.

In conclusion, while a dramatic “crash” that wipes out home values across the board is unlikely, these five Florida housing markets – Cape Coral, Fort Lauderdale, Lakeland, Palm Bay, and West Palm Beach – are indeed in a period of significant price correction. This isn't necessarily a bad thing, as it can lead to a more sustainable and balanced market. For those involved in real estate, understanding these trends and expert insights is crucial for making informed decisions in the coming years.

Florida’s Market Is Shifting—Investors Are Staying Ahead

From Cape Coral to Jacksonville, Florida’s housing market is evolving—but turnkey investors are locking in cash-flowing properties while prices and rents remain favorable.

Norada Real Estate helps you navigate Florida’s changing landscape with fully managed rental properties in high-demand cities—so you can build passive income and long-term equity with confidence.

🔥 NEW FLORIDA LISTINGS JUST ADDED! 🔥

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Want to Know More About the Florida Housing Market?

Explore these related articles for even more insights:

Florida Housing Market on the Verge of a Strong Rebound in 2026

by

If you've been keeping an eye on Florida's housing market, you've probably noticed things felt a little… different this past year. And you're right. Florida’s housing market indeed slowed through much of 2025, a noticeable shift from the frenzied pace we saw not too long ago. However, as I see it, and as the latest insights from Florida Realtors® suggest, this slowdown isn't the whole story.

We're actually starting to see the early sparks of a rebound, fueled by improving mortgage rates and a steady stream of people making the Sunshine State their home.

Florida Housing Market on the Verge of a Strong Rebound in 2026

It’s easy to get caught up in the headlines that scream “market crash” or “bubble bursting,” but the reality is usually far more nuanced. Personally, I've been watching real estate trends for a while now, and what I’m seeing in Florida in 2025 is a market that’s taking a breath, recalibrating, and preparing for its next chapter. So, what exactly happened, and where are we headed?

What Made Things Cool Down?

If you were trying to buy a home in Florida during this period, you probably noticed a few things.

  • Mortgage Rates Weren't Our Friend: The cost of borrowing money to buy a home went up significantly. This meant monthly payments were higher, pushing some potential buyers out of the market or forcing them to look for less expensive homes.
  • Affordability Became a Hurdle: When you mix high prices with high interest rates, you get a tough affordability situation. It just wasn't as accessible for many people to buy their dream home.
  • Insurance Pains: Like I mentioned, insurance is a big deal in Florida. Rising premiums made owning a home more expensive, affecting both buyers and sellers.
  • Extended Time on Market: Homes weren't flying off the shelves as quickly. This meant sellers had to wait longer to find a buyer, and it gave buyers a little more breathing room, but it also signaled a cooling demand.

It's important to understand that the increase in inventory we saw wasn't necessarily because a flood of new homes hit the market. Instead, it was mostly because homes were taking longer to sell. This is a key difference that signals a slowdown in demand rather than an oversupply.

A Global Slowdown and Florida's Place in It

It wasn't just Florida; the whole world was feeling it. The International Monetary Fund pointed out that global economic growth was slowing down. This kind of global economic uncertainty often makes people hesitant to make major purchases, and buying property is definitely a major purchase. This global context definitely played a part in softening demand here in the Sunshine State.

But Wait, There’s Good News Emerging!

Here’s where my experience comes in. Even though things felt slow, I saw glimmers of hope. Since the survey period ended, we've started to see mortgage rates ease a bit. This is a huge deal for buyers. Lower rates mean lower monthly payments, which instantly makes homeownership more attainable for more people. This is precisely why I believe we're seeing that early momentum and beginning of a rebound.

Inventory: Not Too High, Not Too Low

One of the interesting things about 2025 was the inventory situation. While inventory levels did increase, they generally stayed above pre-pandemic norms. This was more a reflection of demand weakness than an explosion of new homes. Importantly, these levels weren’t extreme enough to cause major price drops statewide. In areas where there was some price softening, it often coincided with a lot of new construction competing with existing homes.

Migration: Still Strong, Just Different

Florida has always been a magnet for people, and 2025 was no different, though the pace changed. While the domestic in-migration we saw after the pandemic peak might have cooled a bit, it was still stronger than pre-pandemic levels. And as interest rates continue to make homeownership more accessible, I expect this demand could get even more energized.

International Buyers: A Welcome Resurgence

This is a fascinating part of the story, and something I pay close attention to. International buyers are a vital part of Florida's real estate scene.

Key Takeaways for International Buyers in 2025 (August 2024 – July 2025):

  • Sales Surged: The number of residential purchases by international buyers increased by a whopping 50% compared to the previous year. While still below pre-pandemic numbers, this rebound is a very positive sign for investor confidence.
  • Dollar Volume Climbed: With more transactions and higher sale prices, the total dollar volume spent by international buyers jumped to $10.4 billion, up from $7.1 billion. This was a significant recovery.
  • Still a Small Piece of the Pie: Despite the surge, international buyers still accounted for a small share—5%—of total existing home sales and dollar volume in Florida. This shows how strong the domestic market is.
  • Where They Came From:
    • Latin America and the Caribbean remained the largest group, making up 45% of buyers.
    • Europe and Northern America (primarily Canada) tied for second, at 18% each.

Top Countries by Dollar Volume:

Rank Country Dollar Volume (2025) Change from 2024
1 Canada ~$1.9 billion +52%
2 Colombia $925 million +201%
3 Brazil $762 million Modest Increase
4 Mexico (Returned to Top 5) –
5 United Kingdom (Fell out of Top 5) –

Source: Florida Realtors®

It's really encouraging to see countries like Colombia significantly increasing their investment. Canada continues to be a powerhouse, and it’s great to see Mexico back in the Top 5.

Where International Buyers Invested:

  • South Florida remained the top destination, attracting 45% of international purchases.
  • The Orlando-Kissimmee-Sanford area also saw a good chunk of buyers from Latin America and the Caribbean.
  • Tampa Bay and Southwest Florida were more popular with buyers from Canada and Europe.
  • Interestingly, while the Naples-Immokalee-Marco Island area saw only 6% of Florida’s international purchases, 52% of those buyers were Canadian. This highlights specific regional appeal.

Price Trends: A Slight Shift

Even with the slowdown, Florida's median sale price for international buyers in 2025 was $442,000. This was a slight decrease from the previous year, but still elevated compared to pre-pandemic times. What’s interesting is that the price gap between international buyers and the overall Florida median sale price narrowed.

  • Most Purchases ($250K–$500K): The largest share of homes bought by international buyers fell into this range, showing a slight increase.
  • Under $150K Saw Growth: The price bracket under $150,000 saw the most significant increase in share, which could indicate a different type of buyer or investment strategy.

Looking Ahead: Cautious Optimism

So, what does all this mean for you? Florida’s housing market in 2025 was a mixed bag. We saw a slowdown, no doubt, driven by many factors. But the underlying appeal of Florida – its weather, lifestyle, and investment potential – remains incredibly strong.

As mortgage rates continue to normalize and the global economy finds its footing, I’m anticipating further positive movement. The steady migration trends and the resurgent international interest are powerful indicators that Florida's housing market is resilient and poised for continued growth. It might not be the frenzied pace of a few years ago, but a more balanced and sustainable market is, in my opinion, a good thing for everyone involved.

Florida’s Market Is Shifting—Investors Are Staying Ahead

From Cape Coral to Jacksonville, Florida’s housing market is evolving—but turnkey investors are locking in cash-flowing properties while prices and rents remain favorable.

Norada Real Estate helps you navigate Florida’s changing landscape with fully managed rental properties in high-demand cities—so you can build passive income and long-term equity with confidence.

🔥 NEW FLORIDA LISTINGS JUST ADDED! 🔥

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Want to Know More About the Florida Housing Market?

Explore these related articles for even more insights:

24 Counties in the California Housing Market Post Annual Price Declines

by

While the overall numbers from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) might show a general uptick in California home sales for November, digging a little deeper reveals a more complex picture. It turns out that 24 counties across the state experienced annual price declines in their median home prices. This challenges the idea of a simple, universal market surge and suggests that the California housing market is anything but a monolith.

24 Counties in the California Housing Market Post Annual Price Declines

Let's get straight to it: even as statewide sales reached a three-year high, the reality on the ground in many local areas points to a cooling or at least a plateauing of home values. The median price for an existing single-family home statewide was $852,680 in November. This is technically flat compared to November of last year, but that small difference hides a lot of local variation.

Where Prices Are Dropping

The C.A.R. data clearly shows that not all parts of California are seeing their home prices rise. In fact, a significant number of counties have seen their median prices dip when compared to November 2024. For instance, in the Central Valley, the median home price saw a 1.0 percent decrease year-over-year, settling at $490,000. Similarly, the San Francisco Bay Area, a region typically known for its soaring property values, experienced a 3.2 percent decline in its median home price, now standing at $1,275,000.

Even within these broader regions, specific counties showcase these downward trends more dramatically:

  • San Benito County: Saw a significant 11.3 percent drop in its median home price, falling to $732,500.
  • Lassen County: Experienced one of the steepest declines at 26.6 percent, with its median price now at $185,000.
  • Amador County: Reported an 11.9 percent decrease in median price, now at $470,000.
  • Lake County: Noticed a 4.3 percent decrease, with the median price at $335,000.
  • Humboldt County: Saw a 9.9 percent decline, bringing its median price to $410,000.
  • Mono County: Though its price increased slightly year-over-year by 2.0%, it saw a substantial 19.0% drop month-over-month, indicating volatility.

This data is crucial because it highlights that buyers looking for more affordable options might find opportunities in these specific areas, while sellers need to be aware of the local pricing trends.

The Bigger Picture: Sales vs. Price Growth

It's important to reconcile the reported increase in sales with these price declines. While the statewide sales increased by 2.6 percent year-over-year to 287,940 homes, this surge doesn't automatically translate to price hikes everywhere. Several factors might be at play:

  • Inventory Levels: In many areas with declining prices, the unsold inventory might have increased, giving buyers more leverage. For example, many counties saw their Unsold Inventory Index rise year-over-year.
  • Buyer Demand Shifts: Buyers might be prioritizing affordability, especially with ongoing economic uncertainties, leading them to areas where prices are more accessible or declining.
  • Affordability Constraints: Even with slightly lower mortgage rates, the sticker price of homes, especially in once-hot markets, remains a significant barrier for many. When prices dip in certain counties, it can attract buyers who were previously priced out.
  • The Nature of Median Price: It's important to remember that the median price is simply the middle point of all sales. A few high-value sales in one month compared to another can skew this number. However, when 24 counties show year-over-year declines, it’s a strong signal of a broader trend in those areas.

Regional Dynamics: A Mixed Bag

Let's look at how these price declines are distributed across California's regions, according to C.A.R.'s November 2025 report:

  • San Francisco Bay Area: As mentioned, this region saw a collective 3.2 percent drop in its median home price. Individual counties within this region also showed significant declines:
    • Alameda: -7.2%
    • Marin: -9.5%
    • San Mateo: -8.8%
    • Solano: -2.8%
    • Sonoma: -0.5% However, a few counties like Napa (+4.1%) and San Francisco (+12.6%) bucked this trend, showing price appreciation. This highlights the continued disparity even within the Bay Area.
  • Central Valley: This region saw a 1.0 percent decrease in its median home price. Here are some notable county figures:
    • Kern: -2.5%
    • Sacramento: -2.8%
    • San Benito: -11.3%
    • Stanislaus: -1.0%
    • Tulare: -3.1% Counties like Glenn (+3.1%) and Merced (+6.0%) showed price gains, illustrating the diverse economic forces at play in the Central Valley.
  • Central Coast: This region experienced a slight 0.2 percent increase overall, but some counties saw declines:
    • Monterey: -3.1%
    • San Luis Obispo: -1.6% Conversely, Santa Barbara saw a healthy 9.6% increase.
  • Southern California: This large region saw a 1.2 percent increase in its median home price. However, several counties within Southern California actually reported annual price declines:
    • San Bernardino: -2.5%
    • Imperial: Despite an 11.6% monthly increase, the year-over-year price saw a 0.0% change.
    • Los Angeles saw a slight 0.6% annual increase, but monthly figures indicate a downward trend.

It's also worth noting the Far North, which actually saw a 2.7 percent gain in its median home price. This region, along with parts of Southern California and the Central Coast, were the only major regions to record year-over-year increases.

My Perspective: A Market Authenticating Itself

From my years working in real estate in California, I've learned that the market rarely behaves uniformly across such a vast and diverse state. What the C.A.R. November report shows, with over half the counties experiencing price declines, is less of a “roaring back” and more of a market reality check.

The overall sales increase is indeed encouraging, suggesting renewed buyer activity. However, price appreciation is not a given in every single market. This is actually a sign of a healthier, more realistic market. The era of automatically expected price hikes everywhere has likely cooled. Instead, we're seeing value emerge in areas that offer better affordability or where demand is genuinely strong and sustained, not just a broad, state-wide surge.

The fact that 24 counties are showing annual price declines means that buyers have more negotiation power in those specific local markets. For sellers in these areas, it's essential to be realistic about pricing. The days of listing a home and expecting multiple offers significantly above asking might be over for them. Instead, a well-priced, well-presented home in a desirable location is still key, but the “easy money” of rapid appreciation has tempered.

What Does This Mean for You?

  • For Buyers: If you're looking in one of the 24 counties experiencing price drops, this could be a prime opportunity. You might be able to find a home for less than you would have a year ago, especially if you're patient and do your homework on local market conditions. However, remember that sales are still up statewide, so desirable properties in appreciating markets may still move quickly.
  • For Sellers: Understand your specific local market. If you're in a county with declining prices, be prepared for a potentially longer selling process and price your home competitively from day one. If you're in an appreciating market, you're in a stronger position, but still need to be strategic.
  • For Investors: This data suggests opportunities for strategic investment. Areas with declining prices might represent a chance to buy at a lower entry point, with the potential for future appreciation as the market continues to balance out.

Looking Ahead

While the statewide sales figures paint a picture of recovery, the price declines in nearly half of California's counties suggest that the market's “roar” is far from uniform. It's a testament to the diverse economic realities within California, where local conditions often dictate the real estate experience. As we move forward, paying close attention to county-level data will be more critical than ever for anyone involved in the California housing market.

Think Like a Smart Investor—Build Wealth Through Real Estate

Norada helps you navigate volatility by connecting you with turnkey, cash-flowing rental properties in resilient markets—so you can protect purchasing power and pursue steady income regardless of short-term rate moves.

🔥 HOT NEW LISTINGS JUST ADDED! 🔥

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Related Articles:

Top 10 Most Popular Housing Markets of 2025 for Homebuyers

by

If you're anyone looking at buying a home in 2025, or just curious about where the real estate action is, you're in luck. It's pretty clear from the data that affordability and livability are king in the housing market this year. Forget the idea that you have to break the bank to live in a desirable place. The data from Zillow tells us that places you might not have expected are drawing the most attention, and it's all about finding that sweet spot between a reasonable price tag and a good quality of life.

Top 10 Most Popular Housing Markets of 2025 for Homebuyers

As a long-time observer of housing trends, I’ve seen fads come and go. The intense focus on coastal metropolises and hyper-expensive markets seems to be fading, replaced by a more grounded approach. People are looking for value, for communities where they can actually afford to put down roots, and that's exactly what we're seeing play out in 2025. The Midwest, in particular, is having a major moment, offering up cities that blend affordability with growing job opportunities and charming local vibes. This isn't just about numbers; it's about people making smart choices that fit their budgets and their desire for a fulfilling life.

Based on Zillow's extensive analysis of what home shoppers are looking for – from how often they view listings to how fast homes are selling – the message is loud and clear: midsize cities are the real stars of 2025. These aren't ghost towns; they're vibrant places with their own unique character, often situated within reach of larger economic hubs. Let's dive into the top 10 most popular housing markets of 2025 and see what makes them tick.

The Midwest Takes Center Stage

It’s fascinating to see how often Midwestern cities are popping up. This region has always been known for its down-to-earth prices, but this year, it’s also proving it has so much more to offer. The synergy of affordability, improving job markets, and a strong sense of community is making these cities incredibly attractive.

Zillow's Top 10 Most Popular Housing Markets of 2025: The Breakdown

Here’s the list that everyone’s talking about, showing us where buyers are putting their money (and their eyeballs) in 2025:

  1. Rockford, Illinois
  2. Berkeley, California
  3. Albany, New York
  4. Dearborn, Michigan
  5. Toledo, Ohio
  6. Carmel, Indiana
  7. South Bend, Indiana
  8. Abilene, Texas
  9. Springfield, Illinois
  10. Allentown, Pennsylvania

What’s really striking about this list is how many of these markets offer homes for under $350,000. That's a game-changer for a lot of people who have felt priced out of the market for years. It’s not just about cheap housing, though. These cities are also experiencing job growth and boast communities with the kind of character and amenities that make people want to stay. They’re smartly positioned near bigger cities, offering residents the best of both worlds – access to major career opportunities without the crushing cost of living.

My Take: I see this as a healthy shift. For a long time, the focus was solely on the “hot” coastal cities. But people are realizing that there's a lot of value and a great lifestyle to be found in the heartland. It’s about a more sustainable approach to homeownership, where your mortgage doesn't consume your entire life.

What Makes These Markets So Popular?

It’s not just random chance that these cities are topping the charts. Zillow’s analysis looked at several key factors that indicate buyer interest and demand.

  • High Page View Traffic: Shoppers are spending a lot of time looking at homes in these areas, even if they don’t live there. This tells us there’s a broad appeal that extends beyond the local population.
  • Fast-Moving Homes: Homes in these popular markets are going pending in just days, not weeks. This is a strong indicator of strong demand and a competitive environment.
  • Affordable Home Prices: This is the big one. Many of these markets are offering home values that are significantly lower than national averages, making homeownership more accessible.
  • Growing Job Hubs: These cities aren't stagnant. They are actively attracting businesses and creating new job opportunities, which is crucial for long-term housing market health.
  • Quality of Life: Beyond jobs and prices, these cities offer attractive communities with parks, local businesses, and a sense of belonging.

Orphe Divounguy, Zillow Senior Economist, says it best: “Over the past few years, stretched affordability has defined the housing market, and this year's list shows just how strongly it's shaping where Americans choose to shop. These cities offer the mix buyers are looking for: attainable home prices, expanding job hubs, and lively neighborhoods with parks, shops and community spaces.”

Deep Dive into Some Standouts

Let’s take a closer look at a couple of these winning markets to understand their unique appeal.

  • Rockford, Illinois: The Number One Choice
    Rockford has claimed the top spot for a reason. Located just about 90 minutes from Chicago, it offers that coveted access to a major metropolitan area without the hefty price tag. It’s not surprising that more than three out of five page views for Rockford homes came from shoppers outside the immediate area. And the speed? Homes there are going under contract in an astonishing five days. That kind of activity speaks volumes.
  • Toledo, Ohio: Leading the Large Cities
    Toledo, Ohio, is once again leading the pack among larger cities. With a typical home value that’s incredibly accessible (around $126,000 as of this analysis), it’s a dream for budget-conscious buyers. Add to that its proximity to Lake Erie, its walkable neighborhoods, and a surprisingly vibrant arts scene, and you can see why it’s so appealing.
  • Berkeley, California: The Coastal Surprise
    While the Midwest dominates, it’s interesting to note Berkeley’s presence on this list. This West Coast gem proves that even in pricier coastal regions, there can still be pockets of popularity driven by unique factors. Berkeley’s appeal likely stems from its renowned university, its progressive culture, and its strong connection to the Bay Area's job market, even with higher price points. It shows that even expensive markets can have attractive sub-markets.

My Perspective: I believe the success of cities like Rockford and Toledo highlights a broader trend of re-evaluating what “desirable” truly means. It's less about chasing the hype of a specific zip code and more about finding sustainable living. When you can get a great home, a good job, and a friendly community without crippling debt, that’s a win.

Beyond the Top 10: Regional Favorites

Zillow also highlighted some top cities within different categories and regions, giving us an even more nuanced picture of the 2025 housing market.

By Geographic Region:

  • Northeast: Albany, New York
  • West: Berkeley, California
  • Midwest: Rockford, Illinois
  • Southwest: Abilene, Texas
  • Southeast: High Point, North Carolina
  • Mountain Region: Nampa, Idaho

These regional favorites often share similar characteristics to the overall top 10 – a blend of affordability and opportunity. Abilene, Texas, for instance, offers a lower cost of living and a growing economy, making it a strong contender in the Southwest.

Other Popular Categories:

  • Most Popular Large City: Toledo, Ohio
  • Most Popular Coastal City: Kailua, Hawaii (interestingly, this highlights a desire for lifestyle even in a high-cost area)
  • Most Popular Small Town: Lake Forest, Illinois
  • Most Popular Vacation Town: Portland, Maine
  • Most Popular College Town: Normal, Illinois
  • Most Popular Retirement Town: Bullhead City, Arizona

The diversity in these categories is quite telling. It shows that different buyer needs are being met across various types of locations. People looking for a vacation spot, a place to retire, or a vibrant college town are still finding attractive options, often in places that offer more financial breathing room.

My Thoughts: The inclusion of Kailua, Hawaii, as the most popular coastal city, despite its high cost, is a good reminder that lifestyle remains a massive driver for some segments of the market. However, the overwhelming presence of midsize and affordable markets in the overall top 10 indicates that for the majority of home shoppers in 2025, practicality and financial sense are making a strong comeback.

What This Means for Buyers and Sellers

For buyers, the message is encouraging. Your dream of homeownership might be more attainable than you think. Don't overlook cities that might not be on the traditional “hot list” but are offering genuine value and quality of life. Do your research, explore these emerging markets, and you might be pleasantly surprised by what you find.

For sellers, understand that while demand is high in these popular markets, your pricing and presentation still matter. Homes that offer good value and are well-maintained will still attract multiple offers and sell quickly. It’s about meeting buyer expectations for affordability and desirability.

The housing market is shaping up to be one where smart choices and a focus on balanced living are rewarded. The era of chasing ever-inflating prices seems to be taking a backseat to finding places where life is not only possible but truly enjoyable, without the constant financial pressure.

Want Stronger Returns? Invest Where the Housing Market’s Growing

Turnkey rental properties in fast-growing housing markets offer a powerful way to generate passive income with minimal hassle.

Work with Norada Real Estate to find stable, cash-flowing markets beyond the bubble zones—so you can build wealth without the risks of ultra-competitive areas.

🔥 HOT NEW LISTINGS JUST ADDED! 🔥

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

20 Wealthy Neighborhoods in Los Angeles

by

Los Angeles, the City of Angels, is renowned for its glitz, glamour, and opulence. It's a city where dreams are made, and fortunes are found. Among its sprawling metropolis lie enclaves of wealth that are not just homes but statements of luxury and exclusivity. Here's a glimpse into the ten wealthiest neighborhoods in Los Angeles, where the city's elite reside and thrive.

Exploring the Wealthiest Neighborhoods of Los Angeles

1. Bel-Air

Bel-Air stands as the epitome of wealth in Los Angeles. Known for its grand estates and as part of the Platinum Triangle, Bel-Air is a symbol of ultimate luxury. The neighborhood boasts gated communities and exclusive clubs, offering privacy and prestige. The average real estate price here soars to $4.27 million.

2. Pacific Palisades

With its stunning ocean views and pristine landscapes, Pacific Palisades is a coastal paradise. This neighborhood is perfect for those seeking a serene lifestyle with easy access to beaches and nature. The average home value in Pacific Palisades is around $3.8 million.

3. Beverly Hills

Perhaps the most famous of all, Beverly Hills is synonymous with wealth and celebrity. Home to the iconic Rodeo Drive, this neighborhood offers luxury shopping, five-star dining, and palatial homes, with median prices at $3.65 million.

4. Malibu

Malibu is the beachfront haven for the rich and famous. With its long stretches of beach and private coves, residents enjoy a unique blend of laid-back beach life and opulence. The median home price in Malibu is $3.4 million.

5. Beverly Crest

Tucked in the Santa Monica Mountains, Beverly Crest offers secluded luxury with breathtaking views. It's a community that prides itself on privacy and exclusivity, with homes nestled in the hills.

6. Windsor Square

Windsor Square is a historic and affluent neighborhood, known for its well-preserved early 20th-century homes. It's a tight-knit community that exudes old-world charm and elegance.

7. Brentwood

Brentwood is an affluent suburb with a mix of luxury homes, upscale shops, and lush parks. It's a neighborhood that offers a suburban feel with all the amenities of city life.

8. University Park

University Park is an intellectual hub, home to the University of Southern California. It's a neighborhood that combines historic residences with cultural richness.

9. Holmby Hills

Part of the Platinum Triangle, Holmby Hills is known for its large estates and famous landmarks like the Playboy Mansion. It's a neighborhood that represents old Hollywood glamour.

10. Hancock Park

Hancock Park is a historic neighborhood that has maintained its 1920s charm. With its broad lawns and mature trees, it offers a picturesque setting that's steeped in history.

11. Studio City

Studio City is a vibrant neighborhood known for its entertainment industry ties and upscale living. With a median household income of $105,301, it's a place where celebrities and creatives mingle. The median house price hovers around $1.39 million, reflecting the area's desirability.

12. Hollywood Hills

Nestled in the Santa Monica Mountains, Hollywood Hills is synonymous with celebrity culture and luxury. With a median income of $108,400, it offers stunning views and architectural marvels, boasting a median home price of $2 million.

13. West Hills

West Hills, with its suburban charm and community focus, has a median income of $109,439. It's a neighborhood that balances tranquility with accessibility, providing a retreat from the city's hustle while remaining connected.

14. Encino

Encino features wide boulevards lined with palatial homes and is known for its affluent residents and peaceful environment. The neighborhood's median income is significant, reflecting its status as a wealthy enclave.

15. Silver Lake

Silver Lake is a trendy neighborhood that combines modernist architecture with a bohemian atmosphere. It's a hub for artists and entrepreneurs, with property values consistently on the rise.

16. Los Feliz

Los Feliz is a neighborhood with a rich history and a vibrant cultural scene. It boasts grand old homes and a median income that places it among the city's wealthiest areas.

17. Sherman Oaks

Sherman Oaks offers a mix of urban and suburban living, with a variety of high-end shops and restaurants. The neighborhood's affluence is evident in its real estate prices and the lifestyle of its residents.

18. Griffith Park

Griffith Park is not just a neighborhood but a landmark, offering sprawling green spaces and exclusive properties that are coveted by those seeking both luxury and nature.

19. Tarzana

Named after the fictional estate of Tarzan, Tarzana is a neighborhood that exudes a sense of adventure and exclusivity. With its lush landscapes and affluent community, it's a prime location for luxury living.

20. Toluca Lake

Toluca Lake is a small, picturesque neighborhood known for its celebrity residents and tranquil lake. The area's wealth is reflected in its well-maintained properties and the high quality of life enjoyed by its inhabitants.

These neighborhoods, each with their unique character and appeal, contribute to the tapestry of Los Angeles' rich and diverse landscape. They are not just places of residence but are landmarks of success, offering their inhabitants not just a home, but a statement of their achievements and aspirations. In these neighborhoods, the Los Angeles dream of luxury, comfort, and exclusivity becomes a reality.

Each of these neighborhoods tells a story of Los Angeles' evolution from a burgeoning city to a global icon of prosperity. The allure of these neighborhoods goes beyond their price tags; it's about the status, history, and lifestyle that come with residing in some of the most sought-after zip codes in the world.

Whether it's the beachfront opulence of Malibu or the historic elegance of Hancock Park, each neighborhood offers a unique slice of luxury living in the heart of Southern California.

Work with Norada, Your Trusted Source for Turnkey Investment Properties

Discover high-quality, ready-to-rent properties designed to deliver consistent returns.

Contact us today to expand your real estate portfolio with confidence.

Contact our investment counselors (No Obligation):

(800) 611-3060

Get Started Now

San Diego Housing Market: Trends and Forecast 2025-2026

by

The San Diego housing market is showing signs of steady recovery, with a slight uptick in home prices and sales, though inventory remains a key factor. The market is always moving, and San Diego, with its beautiful beaches and great weather, always seems to be a popular spot. Let’s dive into what the latest numbers tell us about where our housing market is heading.

San Diego Housing Market Trends: What You Need to Know Right Now

Home Sales: Picking Up the Pace

It's good news for sellers and buyers alike: According to C.A.R., home sales across California, including right here in San Diego County, have been on the rise. In November, we saw existing single-family home sales reach their highest point in over three years. This is a sign that more people are feeling confident enough to make a move.

Think of it like this: if more homes are being sold, it means more people are finding the right place to live and are happy to hand over the keys to the next owner. This increase in sales is happening both compared to the month before and compared to last year.

Here's a look at how November sales shook out:

  • California Statewide: Sales were up 1.9% from October and 2.6% from the previous November.
  • Year-to-Date: Statewide sales were up 0.9%, showing a consistent, albeit gradual, increase throughout the year.

While the statewide numbers are encouraging, it's important to note that November was the 38th consecutive month where sales stayed below the 300,000-unit benchmark. This means we're not seeing a boom, but a slow and steady comeback, which is often healthier for the market in the long run.

San Diego County's Sales Picture

When we zoom in on San Diego County specifically, the numbers are interesting. While the overall trend is positive, it's important to look at the specifics. The data shows that Southern California, as a region, experienced a 3.1% annual sales decline in November. However, San Diego County saw a 6.0% decrease in sales year-over-year. This might sound concerning, but as I'll explain, other factors are at play that paint a more nuanced picture. It's a good reminder that even within a larger region, individual counties can have their unique dynamics.

Home Prices: Steady as She Goes

What about the prices? This is often the number one question on everyone's mind. Generally, home prices have remained quite stable, with a slight upward trend. Statewide, the median home price in November was essentially flat compared to the previous year. This suggests that while homes are selling more, they aren't necessarily skyrocketing in price.

The slight dip we saw from October to November is a pretty normal seasonal adjustment as we head into the cooler months. However, looking at the year-over-year figures gives us a clearer picture of the longer-term trend.

Here's the price story:

  • California Median Home Price November 2025: $852,680
  • Compared to October 2025: Down 3.9% (seasonal drop)
  • Compared to November 2024: Essentially flat (0.0% change)

This “essentially flat” situation is actually a good thing for market stability. It means we're not seeing wild price fluctuations, which can be unsettling for both buyers and sellers.

San Diego County's Price Performance

Now, let's look at San Diego County's home prices. While the Southern California region saw a 1.2% increase in median home prices year-over-year, San Diego County specifically saw a very slight increase of 1.5% from November 2024 to November 2025, with the median price reaching about $990,000.

This is a healthy sign. It shows that demand is still strong enough to support modest price growth, but not so strong that it becomes unaffordable for most people. It’s a delicate balance that San Diego seems to be managing well.

Housing Supply: The Inventory Puzzle

One of the biggest factors influencing any housing market is the supply of homes available for sale. This is often measured by the “Months of Supply” or the “Unsold Inventory Index.” When there are more homes available than buyers, it's a buyer's market. When there are fewer homes than buyers, it's a seller's market.

Across California, the housing supply has actually been increasing. The Unsold Inventory Index in November was 3.6 months, up from 3.2 months in October and 3.3 months in the previous November. This means there are more homes on the market now than there were last year.

What does this mean?

  • More choices for buyers: With more homes available, buyers have a better chance of finding exactly what they're looking for.
  • Easing competition: While San Diego is always competitive, a growing supply can take some pressure off buyers and potentially slow down bidding wars.
  • Sellers need to be strategic: With more options available, sellers will want to make sure their homes are priced competitively and presented well to stand out.

It’s important to note that the growth in inventory is slowing down. This suggests that while supply is still elevated, the rate at which new listings are coming onto the market is easing a bit, especially as we approach the holidays.

San Diego County's Inventory Levels

For San Diego County, the Unsold Inventory Index in November was 3.2 months, which is slightly higher than last year's 2.9 months. While this is still on the lower side compared to some other regions (like parts of the Central Valley or Far North which have much higher inventory), it indicates a shift towards a more balanced market. It's no longer a super tight seller's market that we saw in previous years, which is a relief for many aspiring homeowners.

Time on Market: How Long Do Homes Sit?

The “Days on Market” (DOM) is another key indicator. It tells us the average number of days a home stays on the market before it's sold. A shorter DOM usually means a hot market, while a longer DOM suggests it's taking buyers more time to commit.

Statewide, the median time to sell a home in November was 32 days, up from 26 days in November of the previous year. This increase aligns with the rise in inventory. It means homes are sitting on the market a bit longer, giving buyers more time to view properties and make decisions without the extreme pressure of almost immediate offers.

San Diego County's Time on Market

In San Diego County, the median time on market in November was 28 days. This is longer than the 20 days it took last November, mirroring the statewide trend. While still relatively quick, this increase provides a bit more breathing room for buyers. It suggests that while the market is active, the frenzied pace of just a year or two ago has cooled slightly, leading to more thoughtful decision-making.

Seller's vs. Buyer's Market: The Balance Shifts

Based on the numbers for home sales, prices, inventory, and time on market, we can gauge whether it's more of a seller's or buyer's market.

  • Seller's Market: Typically characterized by low inventory, homes selling quickly, and prices rising fast.
  • Buyer's Market: Characterized by high inventory, homes taking longer to sell, and prices potentially declining.
  • Balanced Market: A mix of both, where neither buyers nor sellers have a significant advantage.

With inventory increasing slightly, homes taking a little longer to sell, and prices remaining relatively stable with modest growth, San Diego County is moving towards a more balanced market. It's not a buyer's market where buyers can dictate terms easily, nor is it the extreme seller's market of a few years ago. It's a space where both buyers and sellers have legitimate opportunities, though sellers still need to price their homes correctly and buyers should be prepared to act decisively when the right opportunity arises.

Looking Ahead: What to Expect

Experts predict that mortgage rates will continue to decline gradually in the coming year, which could further stimulate the housing market. However, they also signal that the growth in sales and prices will likely be mild to moderate. This suggests a continued path towards a stable and healthy market, rather than a speculative boom.

San Diego's appeal as a place to live remains incredibly strong. The jobs, the lifestyle, the weather – it all adds up. While economic factors and interest rates will always play a role, the underlying demand for homes in our beautiful city and county is robust.

San Diego Housing Market Forecast 2025: What's Next for Home Prices?

Now, let's dive right in: what's the San Diego housing market forecast looking like? Based on the latest data, it seems we might see a slight dip in home values in the coming months. Experts predict a slight dip in home values in the near future, but a “crash” is unlikely.

The San Diego-Carlsbad average home value is currently $941,517, showing a 1.6% decrease over the past year, with homes going pending in roughly 19 days. Let's dive deeper into what's influencing this forecast and what it could mean for you.

What the Experts are Saying:

Zillow's latest forecasts provide some insights into the coming months:

Timeframe Predicted Change in Home Values
July 2025 -0.7%
September 2025 -2.1%
June 2025 – June 2026 -1.5%

This suggests a gradual cooling off of the San Diego housing market over the next year, but not a drastic decline.

How Does San Diego Compare?

Let's see how San Diego's housing market forecast stacks up against other major California metros:

Region Predicted Change by July 2025 Predicted Change by September 2025 Predicted Change June '25 – June '26
Los Angeles, CA -0.4% -0.9% -1.3%
San Francisco, CA -1% -3.2% -6.1%
Riverside, CA -0.5% -1.3% -0.9%
Sacramento, CA -0.7% -2.1% -3.7%
San Jose, CA -1% -2.6% -4%
Fresno, CA -0.3% -1% -1.2%
Bakersfield, CA -0.3% -0.8% -0.1%
San Diego, CA -0.7% -2.1% -1.5%

As you can see, San Diego's projected decline is similar to other major California cities, suggesting a statewide trend towards slightly lower home values. San Francisco is seeing a more significant projected decline.

Nationwide Trends: What's Happening Across the US?

Lawrence Yun, the Chief Economist for the National Association of Realtors (NAR), is quite optimistic for the future:

  • Existing Home Sales: He expects a 6% rise in 2025 and a whopping 11% jump in 2026. That would be a great recovery!
  • New Home Sales: Projected to increase by 10% in 2025 and 5% more in 2026. This will help with the low housing supply.
  • Median Home Prices: Forecasted to rise by 3% in 2025 and 4% in 2026.
  • Mortgage Rates: Expected to average 6.4% in the second half of 2025 and potentially drop to 6.1% in 2026. He calls low mortgage rates the “magic bullet” to increasing market activity.

So, Will Home Prices Crash in San Diego?

Based on the data and expert opinions, a housing market crash in San Diego seems unlikely. While Zillow predicts some moderate price softening in the short term, the overall market seems to be stabilizing. Demand remains relatively high, and experts are predicting positive growth over the long-term. Mortgage rates may come down in the future, which historically has pushed home prices up and made it easier for people to buy houses.

My Take:

I believe the San Diego housing market will likely experience a gentle correction rather than a crash. The area remains highly desirable. If mortgage rates drop as predicted, we could see a resurgence in buyer activity. If you're looking at buying, now might be a good time to get in while prices are slightly down. And for sellers, understanding these trends can help you price your home competitively.

Looking Ahead to 2026

Following the trends outlined by NAR, a reasonable forecast for the San Diego housing market in 2026 would be a period of moderate growth. We could see an increase in home sales and a continued, although slower, rise in median home prices assuming mortgage rates hold steady or decline as predicted. I expect housing inventory to start playing catch up with demand.

 

San Diego-Carlsbad Housing Forecast

July 2025
🏠
Median List Price
$949,667

Reflects current market demand as of June 2025.

⏱️
Median Days to Pending
19 Days

Homes are selling in around 19 days on average.

📊
For Sale Inventory
8,020

Active listings available as of June 2025.

📥
New Listings
2,891

New listings added in June 2025.

💰
Median Sale Price
$898,333

Sales price data as of May 2025.

📈
1-Year Market Forecast
-1.5%

Expected growth from June 2025 to June 2026.

“San Diego housing market will likely experience a correction in home prices rather than a crash.”

Why is Housing So Expensive in San Diego?

San Diego's allure is undeniable. Pristine beaches, perfect weather, and a vibrant city life make it a dream destination for many. But this paradise comes at a price, particularly when it comes to real estate. Let's delve into the factors driving San Diego's expensive housing market:

Limited Supply, High Demand

  • Geography: Nestled between the Pacific Ocean and mountains, San Diego has limited developable land. This scarcity creates a competitive seller's market, pushing prices upwards.
  • Desirable Location: San Diego's climate, job opportunities, and outdoor activities attract residents and retirees alike, placing constant pressure on a finite housing stock.

Economic Factors

  • Strong Local Economy: San Diego boasts a diverse and thriving economy, fueled by a strong tourism industry, a growing tech sector, and a robust military presence. The economy grew in 2021, adding over $11 billion to its gross regional product (GRP) compared to pre-pandemic levels. In 2022, the San Diego metro area's real gross domestic product (GDP) was $257.34 billion, a significant increase from the previous year's $250.06 billion. According to the UCLA Anderson March Economic Outlook, San Diego County is expected to grow 2.7% in 2023. This economic strength translates to job growth and attracts professionals with higher salaries who can afford premium housing.
  • Low Interest Rates (Historically): Over the past decade, interest rates have hovered near historic lows. This has significantly reduced the monthly mortgage payment for a fixed-rate loan, making homeownership more affordable for many buyers. For example, in 2016, the average 30-year fixed mortgage rate was around 3.5%. By 2 2021, that number had dipped below 3%, making it significantly cheaper to finance a home purchase. This easy access to cheap credit fueled a surge in buyer demand, which in turn drove up housing prices. While interest rates have risen in 2024, they remain historically affordable compared to long-term averages. However, even with slightly higher rates, the overall impact on affordability is mitigated by wage growth and a strong local economy.

Regulations and Taxes

  • Development Restrictions: San Diego, like many coastal cities in California, faces challenges in balancing growth with environmental protection. Strict zoning regulations, lengthy permitting processes, and environmental impact reviews can significantly slow down or even halt new housing developments. This can stifle the ability to increase housing supply to meet the growing demand, putting upward pressure on prices. Additionally, citizen groups and environmental concerns can further complicate the development process. While these regulations are important for safeguarding the natural beauty and character of San Diego, they can also contribute to the limited housing inventory and high costs.
  • Property Taxes: California has relatively high property taxes, with an average effective rate of 0.73% in 2023 according to the California Tax Foundation. This means that for a home valued at $1 million, the annual property tax bill would be around $7,300. High property taxes can impact affordability, particularly for first-time homebuyers or those on fixed incomes. However, these taxes also contribute to the overall perceived value of San Diego real estate. Property taxes are a major source of revenue for local governments, which use these funds to finance essential services like schools, roads, and public safety. Additionally, high property taxes can discourage speculation and absentee ownership, potentially leading to a more stable housing market.

National Trends

Nationwide Housing Market: While San Diego stands out, it's part of a larger national trend of rising housing costs. Investor activity and a national shortage of affordable housing contribute to the overall market dynamic.

The “Sunshine Tax”

San Diegans often jokingly refer to the high cost of living as the “sunshine tax.” While it might be a sardonic term, it reflects the reality that many people are willing to pay a premium to live in such a desirable location with a high quality of life.

How is the Rental Housing Market Doing in San Diego?

The San Diego real estate market has been ranked among the ten most expensive real estate markets in the country, though it ranks below several other West Coast cities. This creates massive demand for San Diego rental properties by those who simply cannot afford to buy homes.

The rental market will continue to grow as the city grows an estimated 500,000 population by 2050, adding tens of thousands each year. The median rent in San Diego is $2700. The rent you’d receive on single-family San Diego rental properties would, of course, be much higher.

Renters vs. Owners in San Diego

San Diego's property rental market is influenced by several factors, including the local economy, job opportunities, and the overall demand for housing. It's a city known for its mix of urban and suburban neighborhoods, each with its own rental and ownership dynamics.

San Diego had a diverse housing landscape with a mix of renters and property owners.

  • Renters: San Diego has a significant population of renters, comprising individuals and families who lease residential properties. This includes apartments, condominiums, townhouses, and single-family homes. The exact percentage of renters relative to property owners can vary by neighborhood and demographic factors.
  • Owners: San Diego also has a substantial number of property owners. These are individuals or entities who own residential properties and may either live in their properties or lease them out to renters. Property owners contribute to the diversity of the city's housing options.

Size of the Rental Market

The size of the San Diego property rental market is substantial, with a wide range of rental properties available to residents. This market includes apartments, houses, and various types of housing units. The exact size of the rental market can fluctuate based on factors like population growth, economic conditions, and housing development trends.

Real estate agencies, rental platforms, and government agencies often track and report on the status of the rental market, offering detailed insights into its size and dynamics.

For the most up-to-date and specific information regarding the current state of the San Diego property rental market, including the number of renters and property owners, it's recommended to refer to the latest reports and data from sources like local real estate associations, government housing agencies, and real estate websites.

San Diego's property rental market is an essential component of the city's real estate landscape, offering a wide range of housing options to its diverse population.

San Diego Apartment Rent Prices

As of July 2025, the median rent for all bedroom counts and property types in San Diego, CA is $2,800. This is +44% higher than the national average.

The monthly rent for an apartment in San Diego, CA is $2,499. A 1-bedroom apartment in San Diego, CA costs about $2,295 on average, while a 2-bedroom apartment is $2,928. Houses for rent in San Diego, CA are more expensive, with an average monthly cost of $4,150.

Rent prices for all bedroom counts and property types in San Diego, CA have remained the same in the last month and have decreased by 5% in the last year.

Housing Units and Occupancy

In terms of occupied housing units, San Diego has the following distribution:

  • Renter-occupied Households: Renter-occupied households make up 53% of the housing units in San Diego, indicating a significant presence of renters in the city.
  • Owner-occupied Households: Owner-occupied households account for 47% of the housing units, highlighting a balanced mix of homeowners in the area.

These insights provide a snapshot of the current rental market in San Diego. Rental prices have seen some fluctuations in recent months, with variations in different apartment types. The city offers a range of neighborhoods to suit different budgets and preferences, with a balanced mix of renters and homeowners.

Build Wealth on Autopilot With Turnkey Real Estate Investments

Turnkey properties let you start earning rental income from day one—no renovations, no tenant hunts, no management headaches.

Work with Norada Real Estate to find vetted, cash-flowing markets tailored to your goals—so you can build steady returns without the stress.

HOT NEW LISTINGS JUST ADDED!

Speak with a seasoned Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Blog Posts

Contact

Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
BBB