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Best Places to Invest in Single-Family Rental Properties in 2026

February 19, 2026 by Marco Santarelli

Best Places to Invest in Single-Family Rental Properties in 2026

Looking for the best places to invest in single-family rentals? You've come to the right place! Based on a report by ATTOM, the top 10 counties for buying single-family rentals offer a sweet spot of wage growth and attractive rental yields. Keep reading to discover which counties made the list and why they're poised for success.

Best Places to Invest in Single-Family Rental Properties

Why Single-Family Rentals?

Before we dive into the specific counties, let's quickly recap why single-family rentals (SFRs) are a popular investment choice. They offer several benefits:

  • Consistent Cash Flow: Rental income provides a steady stream of revenue.
  • Appreciation Potential: Real estate tends to increase in value over time.
  • Tax Advantages: Depreciation, mortgage interest, and other expenses can be tax-deductible.
  • Tangible Asset: Unlike stocks or bonds, you can physically see and manage your investment.

However, not all markets are created equal. Finding the right location is crucial for maximizing returns and minimizing risks. Factors like job growth, population trends, affordability, and local regulations can significantly impact the profitability of an SFR investment.

The Big Picture: Rental Yields

ATTOM's Q1 2025 Single-Family Rental Market Report paints an interesting picture of the SFR market. Across the 361 counties analyzed, the projected annual gross rental yield for three-bedroom properties in 2025 is 7.45%. While that's a decent return, it's slightly down from the 2024 average of 7.52%.

The report suggests that rental yields are expected to decline in nearly 60% of the analyzed counties between 2024 and 2025. This is largely due to home prices increasing faster than rents in many areas. In fact, median single-family home prices rose faster than median rents in 54% of the markets studied. Between 2024 and 2025, median single-family home prices have risen in approximately two-thirds of the counties with sufficient data, typically increasing by around 10%, which is a big factor.

This means that as an investor, you need to be extra selective and strategic when choosing your next rental property.

How Were the Top 10 Counties Selected?

To identify the top counties, ATTOM looked for areas where:

  • Wage Growth is Positive: Rising wages indicate a healthy local economy and the ability for renters to afford higher rents.
  • Projected Rental Yields are Attractive: A higher rental yield means a better return on investment.

The report specifically highlighted 28 “SFR Growth” counties where average wages increased over the past year and projected annual gross rental yields for three-bedroom properties in 2025 exceed 10%.

The Top 10 Counties for Buying Single-Family Rentals

Alright, let's get to the list you've been waiting for! Here are the top 10 counties, according to ATTOM's data, along with some additional insights:

  1. Suffolk County, NY
    • Year-over-year wage growth: 7%
    • 2025 Annual Gross Rental Yield: 18%
    • Why it's great: Suffolk County, located outside of New York City, benefits from its proximity to a major employment hub while offering more affordable housing options. The strong rental yield and solid wage growth make it an attractive market for SFR investors.
  2. Atlantic County, NJ
    • Year-over-year wage growth: 2%
    • 2025 Annual Gross Rental Yield: 18%
    • Why it's great: Atlantic City may be what you think of when you think of Atlantic County, but there are plenty of rentals that can be found.
  3. Jefferson County, AL
    • Year-over-year wage growth: 9%
    • 2025 Annual Gross Rental Yield: 16%
    • Why it's great: As the home to Birmingham, Jefferson County boasts a diverse economy and a growing population. The combination of strong wage growth and a healthy rental yield makes it a promising market.
  4. Mobile County, AL
    • Year-over-year wage growth: 5%
    • 2025 Annual Gross Rental Yield: 19%
    • Why it's great: Mobile's economy is driven by industries such as aerospace, shipbuilding, and manufacturing. The relatively low cost of living and attractive rental yields make it an appealing option for investors.
  5. Ector County, TX
    • Year-over-year wage growth: 5%
    • 2025 Annual Gross Rental Yield: 15%
    • Why it's great: Ector County, home to Odessa, is a major player in the oil and gas industry. While this sector can be volatile, the area's strong job market and competitive rental yields make it a worthwhile consideration.
  6. Indian River County, FL
    • Year-over-year wage growth: 2%
    • 2025 Annual Gross Rental Yield: 12%
    • Why it's great: Indian River County may be located in Florida, and the city itself may draw some tourists, but the lower wage growth is a little offsetting.
  7. St. Louis City, MO
    • Year-over-year wage growth: 7%
    • 2025 Annual Gross Rental Yield: 12%
    • Why it's great: St. Louis City offers a mix of affordability, cultural attractions, and job opportunities. The strong wage growth and attractive rental yield make it a compelling market for SFR investors.
  8. Litchfield County, CT
    • Year-over-year wage growth: Not Specified
    • 2025 Annual Gross Rental Yield: 17%
    • Why it's great: Litchfield County combines a rural setting with proximity to major metropolitan areas. The high rental yield, despite the lack of specific wage growth data, suggests a strong demand for rental properties.
  9. Charlotte County, FL
    • Year-over-year wage growth: 4%
    • 2025 Annual Gross Rental Yield: 16%
    • Why it's great: With its beautiful beaches and sunny weather, Charlotte County attracts both tourists and retirees. The steady wage growth and solid rental yield make it a potentially lucrative market for SFR investments.
  10. Saint Clair County, IL
    • Year-over-year wage growth: 8%
    • 2025 Annual Gross Rental Yield: 16%
    • Why it's great: Located near St. Louis, Saint Clair County benefits from a strong regional economy. The robust wage growth and attractive rental yield make it an appealing option for investors.

Beyond the Numbers: Due Diligence is Key

While these counties show promise based on ATTOM's data, it's important to remember that real estate investment is never a sure thing. Before making any decisions, you need to conduct thorough due diligence. This includes:

  • Analyzing Local Market Conditions: Research vacancy rates, average rents, and property values in specific neighborhoods.
  • Evaluating Property Condition: Inspect properties carefully for any potential repairs or maintenance issues.
  • Understanding Local Regulations: Familiarize yourself with zoning laws, building codes, and landlord-tenant laws.
  • Assessing Risk Tolerance: Determine how much risk you're willing to take on and invest accordingly.

I've seen too many investors jump into deals without doing their homework, only to end up with costly mistakes. Take the time to research and understand the market before committing to any investment.

My Personal Take:

In my opinion, while the data from ATTOM is a great starting point, it's crucial to consider your individual investment goals and risk tolerance. For example, if you're looking for a more stable, long-term investment, you might prioritize counties with consistent job growth and lower volatility. On the other hand, if you're willing to take on more risk for potentially higher returns, you might consider markets with emerging industries or rapid population growth. Also, visit the areas of interest and observe things yourself.

Final Thoughts

Investing in single-family rentals can be a rewarding way to build wealth and generate passive income. By carefully analyzing market trends, conducting thorough due diligence, and considering your personal investment goals, you can increase your chances of success.

The top 10 counties for buying single-family rentals, as identified by ATTOM, offer a compelling combination of wage growth and attractive rental yields. However, remember that these are just starting points. Always do your research and consult with experienced professionals before making any investment decisions.

Top Markets for Single-Family Rental Investments

Single‑family rentals remain one of the strongest real estate plays. Affordable entry points, steady demand, and appreciation make them ideal for investors seeking both cash flow and long‑term growth.

Norada Real Estate helps investors acquire turnkey single‑family properties in high‑potential U.S. markets—delivering immediate rental income and scalable wealth opportunities.

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Filed Under: Housing Market, Real Estate Market Tagged With: real estate, Real Estate Investing, Rental Properties, Single-Family Homes

Will the Real Estate Market Rebound in 2026? Top Predictions by Experts

February 11, 2026 by Marco Santarelli

Will the Real Estate Market Rebound in 2026? Top Predictions by Experts

Housing experts say 2026 could mark the beginning of a long-awaited real estate rebound — but not the kind of sudden boom many buyers remember. Instead, economists expect a gradual recovery driven by easing mortgage rates, improving affordability and a steady increase in homes hitting the market.

After years of bidding wars, record-high prices and stretched budgets, the housing market may finally be entering a reset phase. Analysts at Redfin, the National Association of Realtors and Realtor.com project modest sales growth next year as incomes begin catching up to home values and financing conditions slowly improve.

The outlook isn’t for a dramatic surge or sharp correction. Instead, 2026 is shaping up as a transition year — one where supply improves, competition cools and the market moves closer to balance.

Will the Real Estate Market Rebound in 2026? Top Predictions by Experts

A “Great Housing Reset” According to Redfin

Redfin has a really interesting take on this. They're calling the period starting in 2026 the beginning of a “Great Housing Reset.” What does that mean? Essentially, they believe that for the first time since the Great Recession, our incomes will start growing faster than home prices. This is huge! It means that the gap between what people earn and what homes cost will finally start to shrink, offering some much-needed relief to buyers.

However, let's be clear: this isn't going to be a quick fix. Redfin emphasizes that this reset is a process, not an event. We're talking about a gradual normalization over several years, not a sharp drop in prices. Home sales will slowly pick up, and prices will become more stable.

This means that many people, especially millennials and Gen Z who have been hit hard by high housing costs, will still need to make some lifestyle adjustments. This might include delaying plans like starting a family or even, as Redfin notes, moving back in with parents for a bit longer. It’s a tough reality, but the trend suggests things are moving in a more positive direction.

Redfin's 2026 Outlook at a Glance

Factor Pandemic Boom (2020–2022) Current (2025) Redfin’s 2026 Prediction
Home Price Growth Rapid double-digit gains Slowing (2.9% YoY) Wages outpace prices, modest relief
Mortgage Rates Record lows (~2.65%) ~6%+ Slight easing, still above 6%
Buyer Demand Surging migration, investors Cooling Gradual recovery, more balanced
Market Sentiment FOMO, bidding wars Cautious “Great Housing Reset” mindset
Affordability Declining rapidly Strained Beginning to improve

Redfin emphasizes that relief will be gradual, not immediate. Buyers should expect incremental improvements rather than dramatic drops.

A Strong Rebound Predicted by NAR

The National Association of Realtors (NAR) paints a slightly more optimistic picture for 2026, forecasting a strong rebound in the housing market. Their chief economist, Lawrence Yun, is predicting a 14% jump in existing home sales in 2026. This comes after three years of what he calls stagnation, so a 14% increase would be a significant turnaround.

NAR also expects new-home sales to grow by 5%, adding even more fuel to the fire. A big driver of this growth is the forecast for mortgage rates to ease down to an average of around 6%. While still higher than the pandemic days, this is a noticeable drop from the mid-6% range we're seeing in 2025, which will make a big difference for buyers' budgets.

One of the biggest pain points in recent years has been the lack of homes for sale. NAR projections show that inventory will grow, meaning more homes will be available. This is fantastic news because more choices mean less competition and more power for buyers.

And what about prices? NAR isn't predicting a drop. Instead, they expect home prices to rise modestly, around 4%, which is supported by steady job growth. They anticipate the U.S. economy adding about 1.3 million jobs in 2026, providing a solid foundation for housing demand.

NAR's 2026 Housing Market Forecast

Factor 2025 (Current) 2026 Forecast (NAR) Change from 2025
Existing Home Sales ~4M annually ~4.6M (approx.) +14%
New-Home Sales Flat Increasing +5%
Mortgage Rates ~6.6% avg ~6.0% avg Decreasing
Home Prices +2.9% YoY +4% YoY Modest Growth
Job Growth Slowing +1.3M jobs Strong
Market Sentiment Stagnation Rebound, Opportunity Positive Shift

NAR's outlook is definitely exciting, suggesting that 2026 could be a real turning point for the housing market, moving from a standstill to active growth.

Realtor.com: A Steadier, More Balanced Market

Realtor.com's forecast leans towards a steadier, more balanced market. They see modest gains across the board – for sales, prices, and inventory. Their prediction for mortgage rates is an average of 6.3%. This is a slight improvement from 2025, offering some breathing room for affordability, though still a far cry from the record lows we saw a few years back.

One of the most significant points from Realtor.com is their expectation that housing affordability will improve as incomes outpace inflation. This is a crucial signal that, for the first time since 2022, the typical share of income spent on mortgage payments could fall below the 30% mark. This is a psychological and practical threshold that makes homeownership feel more attainable.

They also project inventory to grow by nearly 9% year-over-year, which will be a welcome change for buyers. This increase in the number of homes for sale will help reduce the intense competition buyers have faced.

While Realtor.com sees the market becoming more balanced, they caution it won't be a buyers' free-for-all. Sellers will still have an advantage due to steady demand, but buyers will gain more negotiating power than they've had recently.

Realtor.com's 2026 Market Projections

Factor 2025 (Current) 2026 Forecast (Realtor.com) Key Change
Mortgage Rates ~6.6% avg ~6.3% avg Easing affordability
Home Prices +2.9% YoY +2.2% YoY Stable, modest growth
Existing-Home Sales ~4.06M 4.13M +1.7% (modest gain)
Inventory Recovering +9% YoY growth More choices for buyers
Affordability Strained Improves (<30% income share) Significant improvement

Realtor.com’s view suggests that 2026 is about coming back down to earth from the wild swings of the past. It’s about building a more sustainable and predictable housing market.

Bringing It All Together: What the Experts Agree On

When you look at what Redfin, NAR, and Realtor.com are saying, a few key themes emerge. They might differ on the exact numbers or the timeline for certain improvements, but the overall direction is clear: 2026 is expected to be a year of recovery and normalization for the real estate market.

Here's what I see as the common threads woven through their predictions:

  • Improving Affordability: This is the biggest win. Across the board, experts agree that affordability will get better in 2026. This primarily comes from two forces: mortgage rates easing (though still higher than pandemic lows) and incomes growing faster than home prices.
  • Increased Inventory: More homes hitting the market is a consensus prediction. This is crucial for reducing competition and giving buyers more options. Redfin indicates a “Great Housing Reset” where available homes will start to balance demand. NAR and Realtor.com both project increases in available homes.
  • Modest Price Appreciation: No one is predicting a crash. Most forecasts suggest modest home price growth in the range of 2-4%. This indicates a stable market rather than a speculative bubble.
  • Gradual Recovery: This is a recurring theme. The turnaround will be slow and steady. It's not going to be an overnight explosion of activity. Redfin calls it a “years-long process of normalization,” and Realtor.com emphasizes “not ‘off to the races.’”
  • Regional Differences: It’s also important to remember that the U.S. housing market isn’t a single entity. Experts repeatedly mention regional divergence. Some areas will rebound faster than others, depending on local economies, job growth, and housing supply. What happens in one city might be very different from what happens across the country.

Side-by-Side Expert Comparison for 2026 Real Estate Rebound

Feature Redfin Prediction NAR Prediction Realtor.com Prediction
Overall Market Feel “Great Housing Reset” (slow, gradual) Strong Rebound Steadier, More Balanced
Existing Sales Growth Gradual increase +14% +1.7%
Mortgage Rate Trend Slight easing, still > 6% Down to ~6.0% Down to ~6.3%
Home Price Trend Wages outpacing prices (modest relief) +4% YoY +2.2% YoY
Inventory Trend Increasing Rising supply +9% YoY growth
Affordability Trend Beginning to improve Improving Improves (<30% income share)
Primary Economic Driver Income growth outpacing price increases Lower rates, job growth, increased inventory Increased inventory, better income-to-price ratio

My take on this? I've seen markets go through cycles, and what these experts are describing sounds like a healthy transition. The frenzy of the pandemic years was unsustainable, and what we've experienced since has been a necessary correction and period of adjustment.

The fact that incomes are projected to outpace home price growth is the most significant indicator for me. It means the fundamental ability for people to afford homes is improving. Add to that some easing in mortgage rates and more homes to choose from, and you have the ingredients for a market that feels more accessible and less stressful.

However, I agree with the caution. This isn't a free-for-all for buyers. Demand is still strong, thanks to job growth and demographic shifts (like aging millennials entering prime home-buying years). Sellers will still have leverage, even if buyers gain some ground.

Risks and What to Watch For

Even with these positive predictions, there are always things that could throw a wrench in the works.

Here's what I'll be keeping an eye on:

  • Persistent Affordability Crisis: While things will improve, housing costs remain a huge hurdle for many. Even with lower rates, homes are still far more expensive than they were a few years ago.
  • Economic Shocks: Unexpected inflation spikes, a sudden economic downturn, or significant shifts in the job market could slow down or alter this recovery. The Federal Reserve's actions regarding interest rates are also a constant factor.
  • Regional Realities: As mentioned, what happens in Austin might not happen in Chicago. Some markets are more sensitive to interest rate changes or have unique supply issues.
  • The Speed of Change: If you're waiting for a dramatic price drop, you'll likely be disappointed. The predictions point to a slow, incremental improvement. Patience will be key for buyers.

Is 2026 the Year Real Estate Recovers?

Based on the expert consensus, the answer is yes, but with an asterisk. 2026 appears to be the starting point of a sustained real estate recovery. It's the year we’ll likely see affordability begin to noticeably improve, mortgage rates dip slightly, and inventory expand. This will lead to a gradual increase in home sales and a stabilization of prices, marking the end of the recent turbulent period and the beginning of a more balanced market.

From my perspective, this is good news. It means the market is moving towards a healthier equilibrium. For potential buyers, it suggests that 2026 might be the year to start seriously planning and engaging, provided they are realistic about the pace of change and their local market conditions. It's a time for informed decisions and strategic moves rather than trying to catch a fleeting market moment.

Invest in Real Estate Today: Market Timing Matters

Experts predict a rebound in housing markets as affordability improves, inventory stabilizes, and demand strengthens in 2026.

For investors, this means new opportunities to secure turnkey rental properties at favorable prices—positioning for cash flow and appreciation as markets recover.

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Filed Under: Housing Market, Real Estate, Real Estate Market Tagged With: real estate, Real estate forecast, Real Estate Trends

5 Hottest Real Estate Markets for Buyers and Investors in 2026

February 8, 2026 by Marco Santarelli

5 Hottest Real Estate Markets for Buyers and Investors in 2026

As we move through 2026, the five hottest real estate markets for buyers and investors continue to attract significant attention thanks to their unique characteristics and strong growth potential. Cities such as Dallas, Miami, Houston, Tampa–St. Petersburg, and Nashville remain at the forefront, driven by factors like sustained population growth, economic resilience, and accessible housing options.

While the analysis was originally highlighted in the Emerging Trends in Real Estate 2025 report published by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI), the fundamentals behind these markets have not shifted dramatically. These cities are still regarded as prime investment destinations in 2026, offering compelling opportunities for both local and out‑of‑state investors. Now, let’s break down why these markets continue to shine.

5 Hottest Real Estate Markets for Buyers and Investors

Key Takeaways

  • Rapid Population Growth: Cities like Dallas and Houston are experiencing significant influxes of residents.
  • Economic Opportunities: Strong job markets in Dallas and Miami are attractive to investors.
  • Affordability: Compared to coastal cities, these markets offer more affordable housing options.
  • Climate and Environmental Considerations: Markets like Miami and Tampa-St. Petersburg come with insurance risks that should be considered by investors.
  • Projected Price Appreciation: Sought-after neighborhoods in these cities show potential for property value increases.

Market Overview Table (Realtor.com)

City Median Home Price Median Monthly Rent Population Growth (2022-2023) Job Sector Influence
Dallas, TX $434,500 $1,475 Largest in the U.S. Finance and Corporate HQs
Miami, FL $535,000 $1,227 Steady Consumer Demand Tourism and Tech
Houston, TX $369,450 $1,375 +140,000 (2022-2023) Health and Green Energy
Tampa-St. Petersburg, FL $399,999 $1,720 Post-COVID Population Surge Hospitality and Services
Nashville, TN $542,447 $1,578 +86 People per Day (2023) Music and Entertainment

Dallas, TX: A Growing Powerhouse

Dallas stands at the forefront of the hottest real estate markets for 2025. The city’s growth is largely attributed to its robust economy and population increase. Supported by a significant concentration of Fortune 500 companies, including a $500 million Goldman Sachs facility, Dallas is transforming into a hotspot for potential residents and investors alike.

The median home price in Dallas is $434,500, while renters can expect to pay around $1,475 monthly. This attractive pricing structure, combined with the city’s job-centric moves and affordable lifestyle options, solidifies Dallas's place as a reliable market for real estate investments.

Key Highlights:

  • Economic Growth: The area has a business-friendly climate with a strong financial presence.
  • Diverse Opportunities: The job market attracts a mix of professionals, boosting housing demand.

Miami, FL: Attractive Rental Yields

Miami is another major contender on our list of top real estate markets. Known for its sunny beaches and cultural diversity, the city offers an appealing rental income potential with average yields between 5% and 7%. The median home price in Miami is approximately $535,000, and the median rent is about $1,227.

However, the market does come with its set of challenges. High insurance premiums due to climate risks can be a concern for investors. Nevertheless, the lack of state income tax continues to attract investment in real estate.

Investor Consideration:

  • Despite potential environmental challenges, properties in less flood-prone areas may yield better long-term profits.

Houston, TX: An Affordable Alternative

Houston showcases itself as a formidable competitor in the real estate market. With a median home price of $369,450, and a median monthly rent of $1,375, this city offers an attractive entry point for investors compared to other major cities.

The rapid influx of nearly 140,000 new residents in one year illustrates a booming job market influenced by thriving health care, technology, and green energy sectors. The absence of formal zoning laws offers additional flexibility for new developments, boosting Houston's position as a desirable market for investment.

Key Points:

  • Houston remains appealing for families due to its lower cost of living and job opportunities.
  • Increased startup activity adds to the local economy's vibrancy.

Tampa-St. Petersburg, FL: Job Growth and Market Resilience

The Tampa-St. Petersburg market has rebounded sharply post-pandemic, with an increasing number of people relocating to the area. The current median home price is $399,999, with rentals averaging around $1,720 per month. An anticipated job growth rate of 2.3 times the national average indicates sustained demand for housing.

Investors are particularly attracted to this market due to its low vacancy rates and supportive tourism sector. However, similar to Miami, climate-related risks demand prudent investment choices regarding property location and insurance coverage.

Market Insights:

  • Warm weather and beaches attract seasonal residents.
  • Those willing to navigate regulatory hurdles in short-term rentals can achieve significant ROI.

Nashville, TN: A Cultural and Economic Hotspot

Nashville, often called “Music City,” has solidified its reputation as one of the best places for real estate investment, even as it drops to fifth on this year's list. The city continues to grow at a remarkable rate of 86 new residents daily in 2023.

With a median home price of $542,447 and a median rent of $1,578, Nashville remains competitive among its peers. While real estate prices have surged, the overall business landscape maintains a favorable environment for investment. Nashville’s vibrant culture and entertainment scene draw new residents, enhancing housing demand.

Critical Factors:

  • The corporate tax structure remains attractive for businesses.
  • Continued population growth is expected to sustain housing needs.

Conclusion of Market Insights

All these hottest real estate markets reflect a combination of economic stability, population diversity, and investment potential. Cities like Dallas, Miami, Houston, Tampa-St. Petersburg, and Nashville provide fertile ground for those looking to enter or expand in the real estate sector.

As we delve deeper into these markets, it becomes clear that understanding local dynamics and broader trends will be essential for maximizing investment returns. Dallas, with its corporate strength, Miami with its rental prospects, Houston’s affordability, Tampa-St. Petersburg’s job growth, and Nashville’s cultural appeal all present unique opportunities for real estate investors in the coming year.

5 Hottest Real Estate Markets for Investors

Dallas, Miami, Houston, Tampa–St. Petersburg, and Nashville stand out as prime real estate markets. These cities combine affordability, strong rental demand, and appreciation potential—making them ideal for buyers and investors.

Norada Real Estate helps investors secure turnkey properties in these high‑growth markets—delivering immediate cash flow and long‑term wealth opportunities for those ready to act now.

🔥 HOT 2026 INVESTMENT LISTINGS JUST ADDED! 🔥
Speak with an Investment Counselor Today (No Obligation):
(800) 611-3060
Or Request a Callback / Fill Out the Form Online

Contact Us

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Filed Under: Growth Markets, Housing Market, Real Estate Market Tagged With: Hottest Housing Markets, Hottest Real Estate Markets, Housing Market, investment opportunities, real estate

Why Real Estate Can Thrive During Tariffs Led Economic Uncertainty

February 4, 2026 by Marco Santarelli

Why Real Estate Can Thrive During Tariffs Led Economic Uncertainty

Is economic uncertainty giving you the jitters? While tariffs and market volatility might sound scary, believe it or not, real estate can actually thrive during tariffs-led economic uncertainty. It's all about understanding market dynamics and employing creative strategies. In this article, I'll share my insights on how you can leverage market fluctuations to your advantage and why real estate can be a safe haven when other investment options seem risky.

Why Real Estate Can Thrive During Tariffs Led Economic Uncertainty

Understanding the Economic Anxiety

It's easy to get caught up in the headlines when news about trade wars and fluctuating interest rates floods the media. The stock market often reacts with knee-jerk dips, and suddenly, everyone's retirement accounts seem a little less secure. I know, I've been there myself, watching the numbers fluctuate and wondering if I should be making changes. However, panicking is rarely the answer. Instead, it's crucial to understand what's driving this anxiety and how it affects different sectors, particularly real estate.

When there's talk about tariffs and trade tensions, businesses start to worry about increased costs and potential disruptions to supply chains. This can lead to:

  • Reduced investments
  • Hiring freezes
  • Overall economic slowdown

The stock market, being forward-looking, reflects these anxieties almost immediately.

Why Real Estate Can Be a Safe Haven

Now, here's where the real estate market comes into play. Unlike stocks, real estate is a tangible asset. It's not just numbers on a screen; it's a physical property that provides shelter, serves as a business location, and holds intrinsic value. This inherent value makes real estate a relatively stable investment during times of uncertainty. Here's why:

  • Essential Need: Everyone needs a place to live or conduct business, regardless of economic conditions. This fundamental demand helps to keep the real estate market afloat, even when other sectors are struggling.
  • Inflation Hedge: Real estate often acts as a hedge against inflation. As prices for goods and services rise, so does the value of real estate, helping to preserve your investment's purchasing power.
  • Rental Income: Investment properties can generate rental income, providing a steady stream of cash flow that is less susceptible to market volatility.
  • Tangible Asset: Unlike stocks, real estate is a physical asset. You can see it, touch it, and improve it, making it a more secure investment in times of uncertainty.
  • Long-Term Investment: Real estate is generally a long-term investment. This means that you are less likely to be affected by short-term market fluctuations.
  • Opportunity to add value: With real estate there is the possibility of adding value to the property and thus increasing its worth.

How Economic Uncertainty Can Create Real Estate Opportunities

The fear and uncertainty caused by tariffs and market downturns can actually create unique opportunities for savvy real estate investors. Here's how:

  • Motivated Sellers: When the economy is shaky, some homeowners may feel pressured to sell quickly. They might be facing job losses, financial difficulties, or simply a desire to downsize and reduce their financial burden. This can lead to motivated sellers who are willing to negotiate on price and terms.
  • Reduced Competition: During uncertain times, many traditional buyers may become hesitant to enter the market. Rising interest rates and tighter lending standards can sideline potential homebuyers, reducing competition and giving investors an edge.
  • Distressed Properties: Economic downturns can lead to an increase in foreclosures and distressed properties. These properties often come with significant discounts, providing opportunities for investors to buy low and potentially generate substantial returns.

Specific Strategies for Thriving in a Tariff-Led Environment

So, how can you specifically leverage these opportunities to thrive in the real estate market during a tariff-led economic uncertainty? Here are some strategies that I believe are particularly effective:

  • Focus on Value-Add Properties: Look for properties that have the potential for improvement. This could involve renovations, upgrades, or even rezoning. By adding value to a property, you can increase its appeal and potential rental income, making it more resilient to market fluctuations.
  • Explore Emerging Markets: Consider investing in emerging markets or up-and-coming neighborhoods. These areas often offer lower prices and higher potential for growth compared to established markets. Thorough research and due diligence are essential when exploring emerging markets.
  • Diversify Your Portfolio: Don't put all your eggs in one basket. Diversify your real estate portfolio by investing in different types of properties (residential, commercial, etc.) and in different geographic locations. This will help to mitigate risk and protect your investments from localized economic downturns.
  • Be a Problem Solver: Many sellers facing difficulties want a quick and easy solution to their real estate problems. This is where you can step in and offer a solution that works for both of you. By being a problem solver, you can find lucrative real estate deals that others might overlook.

Example Scenario:

Imagine a homeowner who owns a small manufacturing business. Due to new tariffs on imported materials, their business is struggling. They are behind on mortgage payments and worried about foreclosure. A traditional buyer might be hesitant to purchase the property due to the uncertainty surrounding the business.

However, as a savvy real estate investor, you can offer a solution. You might propose to buy the property at a fair price, allowing the homeowner to avoid foreclosure and get back on their feet. You can then repurpose the property, rent it out, or even sell it for a profit once the economy stabilizes.

The Importance of Due Diligence

While real estate can offer opportunities during times of uncertainty, it's crucial to conduct thorough due diligence before making any investment decisions. This includes:

  • Market Research: Understand the local market conditions, including vacancy rates, rental rates, and property values.
  • Property Inspection: Have the property inspected by a qualified professional to identify any potential issues or repairs.
  • Financial Analysis: Carefully analyze the potential cash flow, expenses, and return on investment for each property.
  • Legal Review: Consult with a real estate attorney to review all contracts and documents.

My Personal Perspective

I've seen firsthand how economic uncertainty can create both challenges and opportunities in the real estate market. While it's important to be cautious and do your research, I believe that real estate can be a valuable asset in any portfolio, especially during times of volatility. By understanding market dynamics, employing creative strategies, and conducting thorough due diligence, you can position yourself to thrive in the real estate market, regardless of what the economy throws your way.

Final Thoughts

Don't let the headlines scare you away from the real estate market. While tariffs and market downturns can create anxiety, they also present unique opportunities for those who are prepared. By understanding the fundamentals of the market, being creative, and conducting thorough due diligence, you can leverage these opportunities to build a successful real estate portfolio. Real estate offers a tangible asset that can provide stability, income, and long-term growth, making it a valuable addition to any investment strategy, especially during times of economic uncertainty.

Real Estate Stability in Times of Economic Uncertainty

Tariff‑driven uncertainty can disrupt markets, but real estate often thrives as a safe haven.

In 2026, investors are turning to turnkey rentals for consistent cash flow and appreciation when other assets face volatility.

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Also Read:

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  • Real Estate Forecast Next 5 Years: Top 5 Predictions for Future
  • 5 Hottest Real Estate Markets for Buyers & Investors in 2025
  • Will Real Estate Rebound in 2025: Top Predictions by Experts
  • Recession in Real Estate: Smart Ways to Profit in a Down Market
  • Will There Be a Real Estate Recession in 2025: A Forecast
  • Will the Housing Market Crash Due to Looming Recession in 2025?
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Filed Under: Housing Market, Real Estate Market Tagged With: real estate, Real Estate Investing, real estate investments, Real Estate Market, Real Estate Marketing

How Investors Are Positioning to Make $1 Million in Real Estate This Year

February 1, 2026 by Marco Santarelli

How to Make $1 Million in Real Estate Investment in 2026

Everyone wants to be a millionaire, but most investors lack a clear plan for getting there. In 2026, the path to building $1 million in real estate isn’t about speculation—it’s about positioning capital to move faster. Investors are using a strategy known as the velocity of money: buying undervalued properties, creating equity through targeted renovations, generating cash flow with rentals, and refinancing to redeploy capital into the next deal. Repeating this cycle—and taking advantage of tax tools like 1031 exchanges—allows a modest starting investment to compound into seven-figure net worth far sooner than most people expect.

How Investors Are Positioning to Make $1 Million in Real Estate This Year

Now that we have the textbook answer out of the way, I want to have a real talk with you. I have been in the property game for a long time. I have seen people make a fortune, and I have seen people lose their shirts because they treated real estate like a casino.

The year 2026 is going to be interesting. We are likely coming out of a period of high interest rates, and pent-up demand is going to hit the market. If you start positioning yourself now, hitting that million-dollar mark isn't just a dream—it is a math problem. And math is something we can solve.

Here is my in-depth playbook on how to actually get this done.

The Math: Breaking Down the Million

When I say “make $1 million,” I am talking about Net Worth (your equity), not necessarily $1 million sitting in a checking account. In real estate, equity is king because you can borrow against it tax-free.

To hit $1 million in equity by 2026, you generally need to control about $3 million to $4 million worth of real estate, assuming you have mortgages on them.

Here is a simple breakdown of how the math works. You don't need to save $1 million. You need to buy assets that grow to that number.

Strategy Property Value Mortgage Debt Your Equity (Net Worth)
Beginning $500,000 $400,000 $100,000
Forced Appreciation (Renovation) $650,000 $420,000 (Renovation loan added) $230,000
Market Growth (2 Years) $690,000 $410,000 (Principal paydown) $280,000

If you do this with just four properties, you have crossed the $1 million net worth mark. See? It makes the mountain look a lot easier to climb.

The “BRRRR” Method: Your Best Friend

If you have some cash saved up, or access to private money, the absolute fastest way to build wealth is the BRRRR strategy. This stands for Buy, Rehab, Rent, Refinance, Repeat.

In my experience, buying a “turnkey” home (one that is already fixed up) is safe, but it makes you poor. Why? Because you are paying full retail price.

To win in 2026, you need to find the ugliest house on the best street.

  1. Buy: Purchase a home for $200k that needs work.
  2. Rehab: Spend $50k on a new kitchen, floors, and paint. Total investment: $250k.
  3. Rent: Get a tenant in there paying good monthly rent.
  4. Refinance: Because you fixed it up, the bank now says the house is worth $350k. They give you a new loan for 75% of that value ($262.5k).
  5. Repeat: You pay off your original costs ($250k) and put the extra $12.5k in your pocket.

You now own a house, you have $100k in equity, and you have zero dollars of your own money left in the deal. This is infinite return. I have done this, and the feeling of owning a cash-flowing asset for free is unbeatable.

House Hacking: The Cheat Code for Beginners

If you don't have a pile of cash to start, you need to “House Hack.” This is how I tell every young investor to start.

House hacking means you buy a small multi-family property (like a duplex or triplex). You live in one unit and rent out the others.

Why does this work?

  • Low Down Payment: You can use an FHA loan with just 3.5% down because it is your primary residence.
  • Free Living: The tenants pay your mortgage.
  • Savings Rate: Since you aren't paying rent, you can save that money to buy your next deal faster.

By 2026, you could easily own two or three of these properties. If you buy a four-plex for $800,000 with only $28,000 down, and it goes up in value by just 5% a year, you are making tens of thousands of dollars in wealth while doing almost nothing.

Leveraging the “Mid-Term” Rental Market

Everyone knows about Airbnb (short-term rentals). But the market is changing. Cities are banning Airbnbs, and guests are getting tired of cleaning fees.

In 2026, the smart money is moving toward Mid-Term Rentals.

This is renting your furnished property out for 30 to 90 days. Your tenants are travel nurses, corporate employees relocating for work, or families whose homes are being renovated.

  • Higher Income: You can charge 2x what a normal long-term rental charges.
  • Less Work: You don't have to clean the place every two days like an Airbnb.
  • Less Vacancy: Tenants stay for months at a time.

I believe this sector is going to explode. If you can position your properties near hospitals or tech hubs, you can generate the cash flow needed to accelerate your journey to $1 million.

Understanding “Good Debt” vs. “Bad Debt”

Many people are scared of debt. They were taught that all debt is bad. This is wrong.

Consumer debt (credit cards for clothes and cars) is bad. It drains your wallet.
Mortgage debt on rental property is good.

Why?

  1. Someone else pays it: Your tenant pays the interest and principal.
  2. Inflation is your friend: If inflation is 3% and your loan interest is fixed, the bank is losing money, and you are winning. You pay back the loan with “cheaper” dollars in the future.

To hit that $1 million goal, you have to get comfortable with carrying millions of dollars in mortgage debt. As long as the rent covers the mortgage plus expenses (what we call positive cash flow), the debt is an asset, not a liability.

The Secret Weapon: Tax Benefits

You cannot save your way to a million dollars if the government takes 30% of everything you make. Real estate is the most tax-friendly business in the world.

There is a concept called depreciation. The IRS allows you to take a “paper loss” on the building's value every year, even if the building is actually going up in value. This paper loss can offset the income the property generates.

Scenario:
You make $10,000 in profit from rent.
The IRS lets you deduct $10,000 for depreciation.
Taxable Income: $0.

You keep the cash, but on paper, you made nothing. This allows your wealth to compound much faster than someone earning a W-2 salary. By 2026, utilizing cost segregation studies (an advanced form of depreciation) can save you huge amounts of money, allowing you to buy more property.

Real Estate Syndications: For the Busy Professional

Maybe you have a high-paying job and don't have time to fix toilets or manage tenants. You can still hit that $1 million mark by being a Limited Partner (LP) in a syndication.

A syndication is when a group of investors pools their money together to buy a large asset, like a 100-unit apartment complex.

I love syndications because they are truly passive. You write a check for $50k or $100k, and an experienced operator manages the deal. You get a share of the cash flow and a share of the big profit when they sell the building in 3-5 years.

For 2026, look for syndications focusing on workforce housing in the Sunbelt states (places like Texas, Florida, and Tennessee). People are moving there, and they need affordable places to live.

The 2026 Mindset: Patience and Speed

It sounds contradictory, right? But here is what I mean.

You need speed to analyze deals. Good deals in 2026 will fly off the shelf. You need to know your numbers and make offers fast. Do not hesitate when the numbers make sense.

However, you need patience for the wealth to grow. Real estate is not a “get rich quick” scheme; it is a “get rich sure” scheme. Do not freak out if the market dips slightly for a few months. You only lose money if you sell at the wrong time.

Final Thoughts

Learning how to make $1 million in real estate investment in 2026 is about ignoring the noise and focusing on the fundamentals.

Don't buy based on hype. Buy based on cash flow. Look for problems you can solve—ugly houses, bad management, or high vacancy. When you solve those problems, you create value.

Start today. Analyze one deal a day. Connect with one broker a week. By the time 2026 rolls around, you won't just be watching the market; you will be owning a piece of it.

🏡 Which Turnkey Property Would YOU Purchase?

Saint Louis, MO
🏠 Property: Lewis Place
🛏️ Beds/Baths: 5 Bed • 3 Bath • 3006 sqft
💰 Price: $275,000 | Rent: $2,500
📊 Cap Rate: 8.8% | NOI: $2,020
📅 Year Built: 1895
📐 Price/Sq Ft: $92
🏙️ Neighborhood: C+

VS

Port Charlotte, FL
🏠 Property: Aldridge Ave
🛏️ Beds/Baths: 3 Bed • 2 Bath • 1548 sqft
💰 Price: $339,900 | Rent: $2,195
📊 Cap Rate: 5.8% | NOI: $1,643
📅 Year Built: 2025
📐 Price/Sq Ft: $220
🏙️ Neighborhood: A+

Two contrasting investments: historic St. Louis charm with high cap rate vs modern Florida build with stability. Which fits YOUR investment strategy?

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Talk to a Norada investment counselor (No Obligation):

(800) 611-3060

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Make $1 Million in Real Estate Investment in 2026

Experts reveal strategies to build wealth through rental property investing, with opportunities in 2026 strong enough to generate seven-figure portfolios.

Norada Real Estate guides investors in acquiring turnkey rental properties that deliver cash flow and appreciation—helping you reach the $1M milestone faster.

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

Get Started Now

Also Read:

  • REITs vs. Rental Property: Which is Better for Long-Term Investors?
  • Top Turnkey Real Estate Markets for 2026: The Investor’s Guide
  • Top 10 Most Popular Housing Markets of 2025 for Homebuyers
  • Will Real Estate Rebound in 2026: Top Predictions by Experts
  • Housing Market Predictions for the Next 4 Years: 2026, 2027, 2028, 2029
  • Housing Market Predictions for 2026 Show a Modest Price Rise of 1.2%
  • Housing Market Predictions 2026 for Buyers, Sellers, and Renters
  • 12 Housing Markets Set for Double-Digit Price Decline by Early 2026
  • Real Estate Forecast: Will Home Prices Bottom Out in 2025?
  • Housing Markets With the Biggest Decline in Home Prices Since 2024
  • Why Real Estate Can Thrive During Tariffs Led Economic Uncertainty
  • Rise of AI-Powered Hyperlocal Real Estate Marketing in 2025
  • Real Estate Forecast Next 5 Years: Top 5 Predictions for Future
  • 5 Hottest Real Estate Markets for Buyers & Investors in 2025

Filed Under: Real Estate, Real Estate Investing Tagged With: Equity, Net Worth, real estate, Real Estate Investing

Why Real Estate is Your Best Hedge Against Inflation in 2026

January 17, 2026 by Marco Santarelli

Why Real Estate is Your Best Hedge Against Inflation in 2026

Let's talk about keeping your money safe and growing, especially when prices seem to be going up everywhere you look. If you're wondering about the smartest move for your finances in 2026, I'm convinced that real estate is your most powerful weapon against inflation. Even though the market might feel a bit different this year, owning property still offers a solid way to protect and even increase your wealth as the cost of everything else rises.

I've spent a good chunk of my life watching how money moves and how people build their fortunes. And time and again, I've seen that while stocks can soar and dip, and other investments might tick up or down, bricks and mortar tend to hold their value and then some. It’s not just a feeling; there are solid reasons why this holds true, and it’s important to understand them, especially as we look ahead in 2026.

Why Real Estate is Your Best Hedge Against Inflation in 2026

How Real Estate Fights Back Against Rising Prices

Think of inflation like a hungry beast that keeps eating away at the value of your cash. Every year, your dollar buys a little bit less. Real estate has a few clever ways of outsmarting this beast:

  • Buildings Get More Expensive to Build: Imagine you want to build a house today. You need wood, nails, pipes, and people to do the work. When inflation kicks in, the cost of all these things goes up. So, if you have a house that's already built, it becomes more valuable because it would cost a lot more to build a similar one now. It’s like having a vintage car in a world where new cars are suddenly super expensive to manufacture.
  • Rent Checks Keep Up: If you own a rental property, you have a secret weapon: the ability to raise rents. As the cost of living goes up for everyone else, landlords can usually ask for a bit more in rent, helping their income keep pace or even get ahead of inflation. Properties with shorter leases, like apartments, are especially good at this because you can adjust the rent more often than, say, with a long-term commercial lease.
  • Your Old Debt Becomes Cheaper: This is a big one. If you bought your house with a fixed-rate mortgage – meaning your interest rate never changes – you’re in a fantastic position. As inflation makes everything else pricier, you're still paying the same amount each month. That money you’re paying back becomes “cheaper” over time. So, while your house’s value might be going up, and you’re paying back your loan with dollars that are worth less and less, you’re essentially winning on two fronts.

Looking Ahead to 2026: A Different Kind of Real Estate Party

Now, I know you’ve probably heard that predicting the future is tricky, and that’s definitely true for the housing market. The past few years have been a bit of a wild ride. From early 2020 to early 2025, we saw home prices jump by a staggering 55% nationally. That was way more than the 25% rise in the Consumer Price Index (CPI), which is what we usually use to measure inflation. So, for a while there, real estate wasn't just keeping up; it was galloping ahead, making many people feel like they were getting richer even as prices went up.

Things like rent also kept pretty close to inflation. In some apartment buildings, the money coming in from rent actually jumped 25-40% between 2019 and 2023. That's a lot faster than the price of gold! And for those who grabbed a mortgage at super low rates back in 2021, they were really cashing in on that “debt destruction” I mentioned earlier.

But as we wrap up 2025 and look towards 2026, experts are saying things will settle down. We're not expecting those huge, double-digit price jumps anymore. Forecasts from places like Zillow and Realtor.com are pointing to home price growth of just about 1.2% to 2.2% for the whole of 2026.

Now, here's where it gets interesting. Most economists think inflation – the rise in everyday prices – will be higher than that, maybe around 3% or more. What does this mean for homeowners? It means that for the second year in a row, home prices, when you account for inflation, might actually go down a tiny bit in real terms.

And what about mortgage rates? They’re expected to stick around 6.0% to 6.3% for most of 2026. While that's not sky-high, it's definitely higher than the bargain rates we saw a few years ago, and it's expected to keep a lid on demand a bit, even if there are more homes for sale.

So, Is Real Estate Still the Best Bet if Prices Won't Skyrocket?

Absolutely, yes. Here’s my thinking:

  1. It's Still About the Fundamentals: Even with slower nominal growth (the advertised price increase), real estate's core strengths remain. The cost to build new homes will still be higher due to inflation, keeping existing homes valuable. Rental income will likely continue to rise to keep pace with living costs. And that fixed-rate mortgage? It’s still a powerful tool to fight inflation over the long haul.
  2. The “Real Terms Decline” is Temporary and Nuanced: When we talk about a “real terms decline,” it’s often a snapshot in time. A slight dip in real value in one year doesn't erase the massive gains made in the preceding years. Remember, between 2020 and 2025, your property likely grew by well over double the rate of inflation. A small blip in one year doesn't change the fact that real estate has historically outperformed other hedges over decades.
  3. Geographic Differences Matter: Not all markets are created equal. While national averages might show a slight cooling, certain areas will likely buck the trend. I'm keeping an eye on places that are still relatively affordable, have less new building happening, and have people moving in for jobs or a better quality of life.
    • Northeast Gem: Look at places like Hartford, CT; Rochester, NY; and Worcester, MA. These cities are showing up with strong price and sales growth because they offer good value and are attracting buyers from pricier areas.
    • Midwest Resilience: Cities such as Toledo, OH; Pittsburgh, PA; and Milwaukee, WI are becoming attractive due to their affordability and steady stream of buyers.
    • Sun Belt Selectivity: While some Sun Belt boomtowns might be cooling off due to too much new construction, there are still pockets of opportunity. Cities like Charlotte, NC; Houston, TX; and Miami, FL, are expected to see good rent growth and investment potential because they still have strong population growth and some areas have less new supply.

Beyond Just Buying a House: Other Ways to Play the Inflation Game

While I’m a big believer in residential real estate, I also know that diversification is key. If you're looking to hedge against inflation in 2026, here are a few other smart options to consider:

  • TIPS (Treasury Inflation-Protected Securities): These are government bonds where the value of your investment goes up with inflation. They're considered one of the safest ways to protect your money.
  • Commodities like Gold and Energy: Gold has a long history of holding its value when other assets falter. Oil and gas prices often rise with inflation, making energy investments a good historical hedge.
  • Infrastructure: Think about investments in things like utilities or toll roads. The companies running these often have contracts that allow them to raise their prices to match inflation, providing a steady income stream.

My Personal Take: Why Real Estate Wins

Here's my take, based on years of experience. Stocks can be exciting but also incredibly volatile. Bonds are safer but often don't keep pace with significant inflation. Real estate, however, is a tangible asset. You can see it, touch it, and, if it's a rental, it generates income.

Even in a year where home price growth is modest and slightly behind inflation, the other benefits of real estate kick in. That rental income keeps coming, and that fixed-rate mortgage continues to be a powerful debt-reducing tool. It's like a slow, steady march forward rather than a lottery win.

For 2026, don't let the talk of “muted gains” or “real terms decline” scare you away from real estate. Instead, see it as an opportunity. It’s a chance to get into the market or add to your portfolio at a more sustainable price point, knowing that the fundamental forces that make real estate a reliable inflation hedge are still very much in play. It's about long-term wealth building, not chasing quick gains.

🏡 Choose Which Property YOU Would Invest In?

Lebanon, TN
🏠 Property: Baltusrol Lane #852
🛏️ Beds/Baths: 4 Bed • 2.5 Bath • 2011 sqft
💰 Price: $369,990 | Rent: $2,400
📊 Cap Rate: 5.8% | NOI: $1,789
📅 Year Built: 2024
📐 Price/Sq Ft: $184
🏙️ Neighborhood: B

VS

San Antonio, TX
🏠 Property: Salz Way
🛏️ Beds/Baths: 3 Bed • 2 Bath • 2330 sqft
💰 Price: $384,999 | Rent: $2,375
📊 Cap Rate: 4.1% | NOI: $1,324
📅 Year Built: 2019
📐 Price/Sq Ft: $166
🏙️ Neighborhood: A

Tennessee’s balanced rental vs Texas’s larger home with lower cap rate. Which fits YOUR investment strategy?

We have much more inventory available than what you see on our website – Let us know about your requirement.

📈 Choose Your Winner & Contact Us Today!

Contact Us Now 

Real Estate: Your Best Hedge Against Inflation

Experts reveal strategies to build wealth through rental property investing, with opportunities in 2026 strong enough to generate seven-figure portfolios.

Norada Real Estate guides investors in acquiring turnkey rental properties that deliver cash flow and appreciation—helping you reach the $1M milestone faster.

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

Get Started Now

Also Read:

  • How to Make $1 Million in Real Estate Investment in 2026
  • REITs vs. Rental Property: Which is Better for Long-Term Investors?
  • Top Turnkey Real Estate Markets for 2026: The Investor’s Guide
  • Top 10 Most Popular Housing Markets of 2025 for Homebuyers
  • Will Real Estate Rebound in 2026: Top Predictions by Experts
  • Housing Market Predictions for the Next 4 Years: 2026, 2027, 2028, 2029
  • Housing Market Predictions for 2026 Show a Modest Price Rise of 1.2%
  • Housing Market Predictions 2026 for Buyers, Sellers, and Renters
  • 12 Housing Markets Set for Double-Digit Price Decline by Early 2026
  • Real Estate Forecast: Will Home Prices Bottom Out in 2025?
  • Housing Markets With the Biggest Decline in Home Prices Since 2024
  • Why Real Estate Can Thrive During Tariffs Led Economic Uncertainty
  • Rise of AI-Powered Hyperlocal Real Estate Marketing in 2025
  • Real Estate Forecast Next 5 Years: Top 5 Predictions for Future
  • 5 Hottest Real Estate Markets for Buyers & Investors in 2025

Filed Under: Real Estate, Real Estate Investing Tagged With: Equity, inflation, real estate, Real Estate Investing

Top 10 Counties With the Biggest Home Price Gains in Q4 2025

January 15, 2026 by Marco Santarelli

Top 10 Counties With the Biggest Home Price Gains in Q4 2025

If you're keeping an eye on the housing market, you know that prices have been a hot topic. Well, the data is in for the last quarter of 2025, and it shows some serious upward movement in home values in specific areas across the United States. According to ATTOM's Q4 2025 U.S. Home Affordability Report, a definitive look at the housing market reveals that Jefferson County, Alabama saw the most significant jump in median home prices, with an impressive 31% year-over-year increase. This report gives us a crucial snapshot of where the housing market is heating up fastest.

It’s easy to feel a bit overwhelmed by all the real estate news out there, especially with prices constantly shifting. What I've learned from years of following these trends is that while the national picture is important, the real story often lies in the more local data. These specific county-level gains tell us a lot about what's driving demand, what kind of economic activity is happening, and where people are finding opportunities. It's not just about numbers; it’s about the pulse of communities.

Understanding the Housing Price Surge: What's Driving These Gains?

Before we dive into the specific counties that made the biggest leaps, it's important to understand why these price increases are happening. ATTOM's report paints a picture where, for the most part, buying a home became less affordable in nearly every county analyzed. This isn't necessarily a surprise, given that the national median home price has stayed stubbornly near a record high.

However, there's a small glimmer of hope: affordability actually improved from the third to the fourth quarter of 2025 in a significant chunk of counties (86%). This suggests that while overall affordability is a challenge, some markets are seeing a slight easing of pressure, perhaps due to new inventory or a temporary slowdown in price growth within that quarter.

Over the last five years, we've seen a substantial 54% rise in the median home sales price, reaching $365,185 in Q4 2025. Compare that to wages, which, according to the U.S. Bureau of Labor Statistics for the second quarter of 2025, only rose by 29%. This gap highlights the ongoing affordability challenges many homeowners and aspiring buyers are facing.

Of the counties analyzed by ATTOM that met a population threshold of at least 100,000 residents and had at least 50 home sales in Q3 2025, a considerable number (69.5%) experienced year-over-year price increases. These are the counties that are truly showing the most dynamic growth.

Top 10 Counties With the Biggest Home Price Gains in Q4 2025

Now, let's get to the exciting part – the counties where home prices have seen the most dramatic year-over-year increases, according to ATTOM's Q4 2025 report. These are the places that have experienced significant appreciation in home values.

Here are the top 10:

  • #10 – Oswego County, New York
    • Year-over-Year Percentage Change in Median Home Price: 19%
    • Q4 2025 Median Sales Price: $184,369
    • Oswego County, situated on the shores of Lake Ontario, is seeing its housing market heat up. This increase suggests growing demand, potentially driven by its natural beauty, access to outdoor activities, and perhaps a spillover effect from more expensive neighboring areas.
  • #9 – Jefferson County, New York
    • Year-over-Year Percentage Change in Median Home Price: 20%
    • Q4 2025 Median Sales Price: $208,000
    • Another New York county making the list, Jefferson County, home to Fort Drum and the Thousand Islands region, is experiencing a notable rise in home values. This could be linked to economic stability from military presence, tourism, and a general increase in desirability.
  • #8 – Calcasieu Parish, Louisiana
    • Year-over-Year Percentage Change in Median Home Price: 20%
    • Q4 2025 Median Sales Price: $199,000
    • Located in southwestern Louisiana, Calcasieu Parish is showing strong home price growth. This region is known for its industrial base, particularly in petrochemicals and energy. Economic growth in these sectors often translates directly into a stronger housing market.
  • #7 – Dallas County, Iowa
    • Year-over-Year Percentage Change in Median Home Price: 20%
    • Q4 2025 Median Sales Price: $358,500
    • This Iowa county, part of the Des Moines metropolitan area, is experiencing robust price appreciation. As a growing suburban area, it likely benefits from job opportunities in the capital city and a desirable quality of life for families.
  • #6 – Mercer County, Pennsylvania
    • Year-over-Year Percentage Change in Median Home Price: 21%
    • Q4 2025 Median Sales Price: $133,500
    • Mercer County is demonstrating a significant jump in its housing market. While the median price is still relatively low compared to some others on this list, a 21% increase is substantial and indicates a surge in demand and possibly a correction from previous lower valuations.
  • #5 – Lorain County, Ohio
    • Year-over-Year Percentage Change in Median Home Price: 21%
    • Q4 2025 Median Sales Price: $255,000
    • Situated west of Cleveland, Lorain County is seeing its home values climb. Proximity to a major metropolitan area, along with its own developing economy and attractive communities, likely contributes to this price growth.
  • #4 – Madison County, Illinois
    • Year-over-Year Percentage Change in Median Home Price: 22%
    • Q4 2025 Median Sales Price: $220,000
    • Madison County, across the Mississippi River from St. Louis, Missouri, is experiencing impressive home price gains. This region often benefits from the economic influence of its larger neighbor, coupled with its own local development and housing market dynamics.
  • #3 – Lancaster County, South Carolina
    • Year-over-Year Percentage Change in Median Home Price: 23%
    • Q4 2025 Median Sales Price: $265,297
    • This South Carolina county is a standout performer with a 23% increase. Its location in the rapidly growing Charlotte metropolitan area is a significant factor. As Charlotte continues to attract businesses and people, its surrounding counties often see a corresponding boom in housing demand and prices.
  • #2 – Potter County, Texas
    • Year-over-Year Percentage Change in Median Home Price: 25%
    • Q4 2025 Median Sales Price: $196,875
    • In the Texas Panhandle, Potter County, which includes Amarillo, is showing a substantial 25% leap in home prices. The energy sector and agricultural presence in this part of Texas are strong economic drivers that can directly influence the real estate market.
  • #1 – Jefferson County, Alabama
    • Year-over-Year Percentage Change in Median Home Price: 31%
    • Q4 2025 Median Sales Price: $196,000
    • Taking the top spot, Jefferson County, Alabama, with Birmingham as its hub, has seen an extraordinary 31% increase in median home prices. This significant gain suggests a dynamic economic environment, potentially driven by job growth, an influx of new residents, or perhaps a rebound in a market that was previously undervalued. Birmingham has been making strides in diversifying its economy, and this housing data certainly reflects that progress.

My Take: What These Numbers Really Mean

From my perspective, these county-level reports are far more telling than just broad national statistics. When you see a county like Jefferson in Alabama jump by 31%, it’s not arbitrary. It points to underlying economic strength, increased desirability, and a robust demand that's outstripping supply. It’s a sign that that particular community is becoming a more sought-after place to live.

I do notice a trend where counties adjacent to or within commuting distance of major metropolitan areas (like Dallas County, Iowa, near Des Moines; Lorain County, Ohio, near Cleveland; Madison County, Illinois, near St. Louis; and Lancaster County, South Carolina, near Charlotte) are showing significant gains. This “spillover effect” is a common pattern. As housing becomes less affordable in the core cities, buyers look to surrounding areas, driving up prices there.

It's also interesting to see counties with strong industrial or energy sectors (Calcasieu Parish, Louisiana; Potter County, Texas) also appear. These sectors can create well-paying jobs, attracting people and bolstering local economies, which naturally heats up the housing market.

While these price gains are positive for homeowners, they definitely underscore the ongoing challenge of affordability for new buyers. The gap between wage growth and home price appreciation remains a critical issue that policymakers and market participants will need to address. It makes me wonder about the long-term sustainability of these rapid increases and what they mean for the next generation of homebuyers.

Ultimately, the ATTOM Q4 2025 U.S. Home Affordability Report and these specific county figures offer a fascinating glimpse into a housing market that continues to evolve. Keeping an eye on these trends can provide valuable insights for buyers, sellers, and anyone interested in the economic health of these communities.

🏡 2 Amazing Properties Available for Investors

Port Charlotte, FL
🏠 Property: Aldridge Ave
🛏️ Beds/Baths: 3 Bed • 2 Bath • 1548 sqft
💰 Price: $339,900 | Rent: $2,195
📊 Cap Rate: 5.8% | NOI: $1,643
📅 Year Built: 2025
📐 Price/Sq Ft: $220
🏙️ Neighborhood: A+

VS

Punta Gorda, FL
🏠 Property: Oceanic Rd
🛏️ Beds/Baths: 6 Bed • 4 Bath • 3032 sqft
💰 Price: $639,900 | Rent: $4,895
📊 Cap Rate: 6.9% | NOI: $3,685
📅 Year Built: 2025
📐 Price/Sq Ft: $212
🏙️ Neighborhood: B+

Florida’s A+ affordable rental vs Punta Gorda’s larger high‑yield property. Which fits YOUR investment strategy?

We have much more inventory available than what you see on our website – Let us know about your requirement.

📈 Choose Your Winner & Contact Us Today!

Talk to a Norada investment counselor (No Obligation):

(800) 611-3060

View All Properties

Also Read:

  • U.S. Household Real Estate Value Drops by $361 Billion From Record High
  • Top 10 Housing Markets Set to Deliver High ROI in 2026
  • 10 Hottest Housing Markets of 2026: From Hartford to Milwaukee
  • Top 10 Most Popular Housing Markets of 2025 for Homebuyers
  • Will Real Estate Rebound in 2026: Top Predictions by Experts
  • Housing Market Predictions for the Next 4 Years: 2026, 2027, 2028, 2029
  • Housing Market Predictions for 2026 Show a Modest Price Rise of 1.2%
  • Housing Market Predictions 2026 for Buyers, Sellers, and Renters
  • 12 Housing Markets Set for Double-Digit Price Decline by Early 2026
  • Rise of AI-Powered Hyperlocal Real Estate Marketing in 2025
  • Real Estate Forecast Next 5 Years: Top 5 Predictions for Future
  • 5 Hottest Real Estate Markets for Buyers & Investors in 2025

Filed Under: Housing Market, Real Estate Market Tagged With: Federal Reserve, Housing Market, real estate

Should You Put Your Money in Real Estate in 2026?

January 14, 2026 by Marco Santarelli

Should You Put Your Money in Real Estate in 2026?

Thinking about putting your hard-earned money into real estate in 2026? It's a big question, and honestly, it's not a simple “yes” or “no” answer. While the dream of passive income and property appreciation is always appealing, the reality for 2026 is that real estate isn't a guaranteed jackpot. Instead, think of it as a smart play for those who are disciplined and know where to look. It’s a market that's settling down, offering a more balanced game for savvy investors.

Should You Put Your Money in Real Estate in 2026?

I’ve been following the real estate market for years, and what I see for 2026 is a shift. After the crazy ups and downs of the past few years, we’re heading into a period where things are becoming more predictable. This isn’t the sky-high appreciation we saw not too long ago, but it’s also not a crash. It’s a time for a different kind of investing – one that’s more about smart decisions and less about just riding a wave.

The Market Picture for 2026: A Calmer Seas Ahead

Let's break down what experts are saying and what I’ve observed. The biggest takeaway for 2026 is that the market is rebalancing. This means modest price growth, which is good news for buyers looking for more reasonable prices, and also for investors who prefer stability over wild swings.

Here’s a more detailed look:

  • Prices Won't Skyrocket, But They'll Grow Steadily: On a national level, expect home prices to go up by around 1% to 4%. This is generally slower than how much our paychecks are growing, which is fantastic for affordability. What this also means is that when you factor in inflation, actual home prices might even go down slightly for the second year in a row. This isn't a bad thing; it means we're moving away from inflated prices.
  • Mortgage Rates: A Little Breathing Room: Mortgage rates are predicted to settle in the low to mid-6% range. This is a slight improvement from 2025. While it's not the super-low rates of the past, it’s enough to encourage some buyers who were waiting it out to finally jump in. This could lead to more sales happening.
  • More Homes on the Market: Finally, some good news for buyers! We're expecting to see more existing homes come onto the market. Plus, new home construction is projected to pick up. This means you'll have more choices and likely more room to negotiate than you’ve had in recent years.
  • Where You Invest Matters – A Lot: This is super important. Markets are going to be all over the place. Some areas, especially in the Midwest, are showing really good growth. Others, particularly in the South and parts of the West, might see prices dip a bit. Why? It could be more homes being built or concerns about things like insurance costs. So, you can’t just pick any spot and expect it to do well.

Commercial Real Estate (CRE): Signs of Life

It’s not just about where people live. Commercial real estate is also in a recovery phase. Businesses are starting to invest again, and more deals are getting done.

  • What to Watch:
    • Industrial: Think warehouses and logistics centers. Demand here is still strong.
    • Living Spaces: Apartment buildings (multifamily), student housing, and senior living facilities are looking good because people always need a place to live.
    • Data Centers: With all the tech we're using, data centers are booming.
    • Necessity-Based Retail: Stores that sell everyday items, like grocery stores, are proving to be resilient.
  • The Office Situation: The office market is still a bit of a slow mover, but there are hints of improvement in some big city centers. It’s not the safest bet right now, but it’s starting to show signs of life.

Making Smart Investments in 2026: Focus on the Fundamentals

So, if it's not a guaranteed “bet,” how do you actually make money? It comes down to being smart and strategic.

  • Income is King: In 2026, the income a property generates will be the main driver of your returns. This means you need to find properties that consistently bring in rent and have good management looking after them.
  • Be Picky, Be Disciplined: As I mentioned, markets will be very different. Some properties will do great, others won't. Your success will depend on choosing the right properties in the right locations. Don't just buy anything; do your homework!
  • Think Long-Term: Real estate is a tool for building wealth over time. This whole market shift, sometimes called the “Great Housing Reset,” is expected to take several years to play out. Your decisions should be based on your personal financial goals and a commitment to holding onto a property for a while.

Where Are the Hot Spots in 2026?

Experts are pointing to a few key areas that are expected to shine in 2026. Generally, these are places that offer affordability, job growth, and where there isn't a ton of new construction flooding the market.

Top Residential Real Estate Markets to Consider for 2026:

Many of these markets attract buyers from more expensive neighboring areas.

Region Key Cities/Areas Why They’re Strong
Northeast Hartford, CT Buyers from expensive areas like NYC and Boston are moving in, boosting sales and prices.
Rochester, NY Limited supply and good value compared to bigger cities mean solid price gains are expected.
Worcester, MA Strong sales growth and affordability make it attractive.
Providence, RI Benefits from nearby city dwellers looking for more affordable options and has its own growing job market.
Pittsburgh, PA Very affordable with lower mortgage “lock-in” pressure, meaning more people are willing to move and sell.
NYC Suburbs (Long Island, Northern NJ, etc.) Commuter access to the city and being more affordable than Manhattan keeps demand high.
Midwest Toledo, OH Leads in expected price growth with very low starting home prices, attracting bargain hunters.
Indianapolis, IN Strong job market, affordability, and a good balance between home prices and local incomes make this a promising area.
Milwaukee, WI Affordability and job growth are drawing in buyers and investors with solid financial profiles.
Columbus, OH Solid job growth and reasonable prices relative to incomes are driving activity.
St. Louis, MO & Cleveland, OH Very low entry prices mean good potential for investors looking for positive cash flow.
Southeast & Other Richmond, VA A “quietly powerful” market with good job gains and buyers who can comfortably afford homes. Offers a nice mix of affordability and stability.
Raleigh, NC Strong income growth, a younger population (millennials), and a balance of affordability and demand.
Jacksonville, FL One of the Florida markets where both affordability and the number of homes for sale are improving, attracting people to move there.
Salt Lake City, UT Rebounding strongly, especially with its thriving tech scene and access to outdoor activities.
Spokane, WA Strong buyer interest is making this a market to watch.

Beyond Bricks and Mortar: Public Real Estate

If buying a physical property seems like too much right now, consider looking into publicly traded real estate investment trusts (REITs). These are companies that own and operate income-producing real estate. Right now, they’re trading at a discount compared to private real estate deals, which could offer some good value and diversification.

Other Investment Options for 2026: A Diverse Approach

While real estate is a significant piece of the puzzle, it's wise to think about other investments too. A well-rounded portfolio is key.

  • Stocks:
    • U.S. Stocks: Especially large companies, are expected to do well. Thanks to new technology like AI, companies are becoming more efficient, which can lead to better profits. Analysts predict double-digit earnings growth for big companies in 2026.
    • Value Stocks: These are stocks that seem to be priced lower than their actual worth. As the economy grows more broadly, these could see some nice gains.
    • Emerging Markets Stocks: Investing in countries that are still developing can offer a way to spread your risk and potentially get higher returns.
  • Commodities & Alternatives:
    • Gold: It’s a safe bet during uncertain times. People are buying it, central banks are involved, and it can protect you against inflation and global instability.
    • Copper and Aluminum: These metals are crucial for building new things like data centers, electric cars, and upgrading power grids. The supply can't keep up with the demand.
    • Natural Resources: Companies that produce natural gas or are involved in new energy technologies are well-positioned because of the growing need for power, especially with AI and electrification.
    • Digital Assets: Bitcoin and other cryptocurrencies are maturing. Some companies involved in Bitcoin mining are even turning into energy providers, which is an interesting development.
    • Infrastructure: Think about utilities, data centers, and clean energy projects. These are essential services and are likely to perform well.

Ultimately, 2026 is shaping up to be a more predictable year for real estate than the rollercoaster we’ve been on. It’s not a time for a blind “bet,” but for disciplined investors who do their homework and focus on the fundamentals. If you’re willing to be selective and think long-term, real estate can definitely be a smart part of your investment strategy.

🏡 Two Amazing Properties Available for Investors

Port Charlotte, FL
🏠 Property: Aldridge Ave
🛏️ Beds/Baths: 3 Bed • 2 Bath • 1548 sqft
💰 Price: $339,900 | Rent: $2,195
📊 Cap Rate: 5.8% | NOI: $1,643
📅 Year Built: 2025
📐 Price/Sq Ft: $220
🏙️ Neighborhood: A+

VS

Punta Gorda, FL
🏠 Property: Oceanic Rd
🛏️ Beds/Baths: 6 Bed • 4 Bath • 3032 sqft
💰 Price: $639,900 | Rent: $4,895
📊 Cap Rate: 6.9% | NOI: $3,685
📅 Year Built: 2025
📐 Price/Sq Ft: $212
🏙️ Neighborhood: B+

Florida’s A+ affordable rental vs Punta Gorda’s larger high‑yield property. Which fits YOUR investment strategy?

We have much more inventory available than what you see on our website – Let us know about your requirement.

📈 Choose Your Winner & Contact Us Today!

Talk to a Norada investment counselor (No Obligation):

(800) 611-3060

View All Properties

Also Read:

  • Top Real Estate Investment Markets to Watch in 2026
  • Top 10 Most Popular Housing Markets of 2025 for Homebuyers
  • Will Real Estate Rebound in 2026: Top Predictions by Experts
  • Housing Market Predictions for the Next 4 Years: 2026, 2027, 2028, 2029
  • Housing Market Predictions for 2026 Show a Modest Price Rise of 1.2%
  • Housing Market Predictions 2026 for Buyers, Sellers, and Renters
  • 12 Housing Markets Set for Double-Digit Price Decline by Early 2026
  • Real Estate Forecast: Will Home Prices Bottom Out in 2025?
  • Housing Markets With the Biggest Decline in Home Prices Since 2024
  • Why Real Estate Can Thrive During Tariffs Led Economic Uncertainty
  • Rise of AI-Powered Hyperlocal Real Estate Marketing in 2025
  • Real Estate Forecast Next 5 Years: Top 5 Predictions for Future
  • 5 Hottest Real Estate Markets for Buyers & Investors in 2025

Filed Under: Real Estate Investing, Real Estate Market Tagged With: real estate, Real Estate Investing, Real Estate Market

U.S. Household Real Estate Value Drops by $361 Billion From Record High

January 14, 2026 by Marco Santarelli

U.S. Household Real Estate Value Drops by $361 Billion From Record High

Listen up, homeowners and aspiring buyers – the latest numbers are in, and they show a slight dip in how much our houses are worth. The total value of U.S. households' real estate has dropped by $361 billion from its peak, settling in at just over $48 trillion in the third quarter of 2025. While this might sound alarming, I want to assure you that this is a modest adjustment, and overall, our homes are still worth a whole lot more than they were just a few years ago.

As someone who's been watching the housing market for years, this kind of fluctuation isn't exactly a shocker. We've seen incredible growth in home values over the past decade, far more than doubling in many areas. So, a small dip isn't necessarily a sign of doom and gloom, but it's definitely worth understanding what's behind it.

U.S. Household Real Estate Value Drops $361B From Record High

What's Driving the Real Estate Value Drop?

The Federal Reserve's Z.1 Financial Accounts data gives us this snapshot, and it’s corroborated by insights from Realtor.com®. Senior Economist Jake Krimmel points to a small quarterly drop in the Case-Shiller Home Price Index as a key player in this decrease. Think of the Case-Shiller index as a way to track how home prices are changing over time across major cities. When it dips even a little, it can ripple out and affect the overall national value.

But it's not just one thing. Several factors are subtly nudging the market. Persistently high mortgage rates, which have been lingering in the 6%-8% range throughout 2024 and 2025, are a big one. When borrowing money to buy a house becomes more expensive, it naturally puts a damper on demand and, consequently, prices.

Beyond that, we're seeing climbing property taxes and insurance costs. These aren't always included in the purchase price, but they add to the overall cost of homeownership. For many, these rising expenses are making it a tougher pill to swallow, even if the initial purchase price seems manageable.

And then there's the inventory. For a while, there just weren’t enough homes for sale. Now, some homeowners are realizing that those historically low interest rates they locked in a few years ago are probably not coming back anytime soon. So, they’re starting to put their homes on the market, which can lead to a slight tick up in housing inventory. More homes for sale means more choice for buyers, and potentially less upward pressure on prices.

Homeowner Equity: Still Strong?

Now, let's talk about what this means for homeowners. A big concern for many is how much equity they have – the difference between what their home is worth and what they owe on their mortgage. The good news is that even with this recent dip, owners' equity in real estate remains robust. In the first quarter of 2025, homeowners' equity share was around 72%. That's a really healthy number and acts as a significant cushion. It means most people still have a substantial amount of money tied up in their homes that they truly “own.” This strong equity position is a major reason why most experts don't see a repeat of the 2008 housing crash on the horizon.

What Does the Future Hold?

Looking ahead, Realtor.com® forecasts a 2.2% annual home price gain for 2026. That's a bit higher than the estimated 2% increase in 2025. However, and this is where things get a touch more nuanced, the forecast also suggests that inflation might outpace these price gains. This means that in “real” terms – adjusted for inflation – homeowners might see a slight decline in their home's purchasing power.

Krimmel puts it this way: “We forecast 2.2% home price gains but the homeownership rate to tick slightly down. In total, real estate values will be steady in 2026, but at the local level home values often diverge from national trends.”

This last part is crucial. National averages can be misleading. Some areas, especially those that saw massive price surges during the pandemic – think parts of coastal Florida or Austin, Texas – are experiencing a more notable softening in their home values. Conversely, other markets might continue to see modest growth. It really emphasizes the importance of looking at your specific local market rather than just the big picture.

A Mixed Bag for Buyers and Sellers

For potential buyers, this cooling market could offer a slightly better environment. We’re expecting existing home sales to grow about 1.7% to 4.13 million units. Combined with that potential increase in inventory, buyers might find more options and a bit more room to negotiate. However, those persistent high mortgage rates will still be a factor.

For sellers, it means the days of receiving multiple offers above asking price within hours of listing might be less common, at least for now. It’s a return to a more balanced market, where thoughtful pricing and good presentation are key.

Debt vs. Equity: A Balancing Act

It's also worth noting the other side of the financial coin: debt. In the third quarter of 2025, household debt increased by 4.1%, a slight uptick from the previous quarter. Mortgage debt specifically saw a notable $108 billion spike. This increase in debt, while potentially concerning, is happening alongside strong homeowner equity. It’s a complex financial equation, but the overall picture suggests homeowners are generally in a solid position, even with these subtle shifts.

Overall, the U.S. household real estate market is demonstrating resilience. While we've seen a small retreat from peak values, it's more of a gentle recalibration than a harsh correction. Understanding the underlying causes and looking at local market dynamics will be key for anyone navigating this ever-evolving space.

🏡 2 Amazing Properties Available for Investors

Port Charlotte, FL
🏠 Property: Aldridge Ave
🛏️ Beds/Baths: 3 Bed • 2 Bath • 1548 sqft
💰 Price: $339,900 | Rent: $2,195
📊 Cap Rate: 5.8% | NOI: $1,643
📅 Year Built: 2025
📐 Price/Sq Ft: $220
🏙️ Neighborhood: A+

VS

Punta Gorda, FL
🏠 Property: Oceanic Rd
🛏️ Beds/Baths: 6 Bed • 4 Bath • 3032 sqft
💰 Price: $639,900 | Rent: $4,895
📊 Cap Rate: 6.9% | NOI: $3,685
📅 Year Built: 2025
📐 Price/Sq Ft: $212
🏙️ Neighborhood: B+

Florida’s A+ affordable rental vs Punta Gorda’s larger high‑yield property. Which fits YOUR investment strategy?

We have much more inventory available than what you see on our website – Let us know about your requirement.

📈 Choose Your Winner & Contact Us Today!

Talk to a Norada investment counselor (No Obligation):

(800) 611-3060

View All Properties

Also Read:

  • Top 10 Housing Markets Set to Deliver High ROI in 2026
  • 10 Hottest Housing Markets of 2026: From Hartford to Milwaukee
  • Top 10 Most Popular Housing Markets of 2025 for Homebuyers
  • Will Real Estate Rebound in 2026: Top Predictions by Experts
  • Housing Market Predictions for the Next 4 Years: 2026, 2027, 2028, 2029
  • Housing Market Predictions for 2026 Show a Modest Price Rise of 1.2%
  • Housing Market Predictions 2026 for Buyers, Sellers, and Renters
  • 12 Housing Markets Set for Double-Digit Price Decline by Early 2026
  • Real Estate Forecast: Will Home Prices Bottom Out in 2025?
  • Housing Markets With the Biggest Decline in Home Prices Since 2024
  • Why Real Estate Can Thrive During Tariffs Led Economic Uncertainty
  • Rise of AI-Powered Hyperlocal Real Estate Marketing in 2025
  • Real Estate Forecast Next 5 Years: Top 5 Predictions for Future
  • 5 Hottest Real Estate Markets for Buyers & Investors in 2025

Filed Under: Housing Market, Real Estate Market Tagged With: Federal Reserve, Housing Market, real estate

Why Mortgage Rates Near 6% in 2026 Matter for Real Estate Investors

January 12, 2026 by Marco Santarelli

Why Mortgage Rates Near 6% in 2026 Matter for Real Estate Investors

Let's talk about something that's on a lot of real estate investors' minds: mortgage rates. Specifically, what happens when they settle around 6% by 2026. It matters, a lot. Essentially, mortgage rates hovering near 6% in 2026 signal a significant shift from the ultra-low rates we’ve seen, fundamentally altering affordability, investment strategies, and the very dynamics of the real estate market for anyone looking to make a profit through property. This isn't just a number; it's a new economic reality that demands our attention.

For years, we’ve been riding a wave of incredibly low borrowing costs. It felt like a golden ticket, making it easier to acquire properties and see quick appreciation. But that tide is turning. As rates climb closer to that 6% mark, it’s like the music is starting to slow down, and we all need to be prepared to change our dance steps.

Why Mortgage Rates Near 6% in 2026 Matter for Real Estate Investors

The Affordability Squeeze: A Smaller Pool of Buyers

Here’s the biggest, most immediate impact: affordability. Imagine you’re a first-time homebuyer, just starting out. You’ve been saving, dreaming of owning your own place. Now, combine that 6% mortgage rate with home prices that are still pretty high from the recent boom. Suddenly, that dream becomes a lot more expensive. That higher monthly payment can push homeownership out of reach for a lot of people.

As an investor, this directly affects you. If fewer people can afford to buy, it means there's a smaller pool of potential buyers when you decide it's time to sell. This can lead to longer selling times or, worse, having to accept lower offers than you anticipated. I've seen it happen – when the affordability window closes, the frenzy cools off, and the market becomes a lot more discerning.

The Sticky “Lock-in” Effect: Supply Woes Continue

Now, let’s talk about the “lock-in” effect. This is a major player in the housing market right now, and it’s not going away anytime soon. What it means is that a huge chunk of existing homeowners – over 80% – have mortgage rates far, far below that 6% we’re projecting. They’re sitting on incredibly low payments.

Why does this matter to us investors? Simple: Supply. These homeowners are essentially stapled to their current homes. They’re not going to sell and then buy a new place with a mortgage rate that’s double or triple what they're paying now. This reluctance to move dramatically shrinks the number of homes available on the market. For us, that means fewer properties to choose from, and increased competition when a good deal does pop up. It’s like trying to find a needle in a haystack, but the haystack is also getting smaller.

The Rental Boom: A Silver Lining for Some

But it’s not all gloom and doom. For those of us who focus on rental properties, this affordability challenge can actually be a good thing. When buying a home becomes too expensive, more people will choose to rent. They might also opt for renting because they need flexibility, especially with the uncertainty in the market.

This sustained or even increased demand for rentals can be a huge benefit. It can lead to more stable rental income streams for investors. I’ve always believed that a strong rental market is the bedrock of a smart real estate investment strategy, and this trend certainly reinforces that. As long as people need a roof over their heads, there's an opportunity.

Shifting Buyer Mentality: A New “Normal”

Here’s something we need to adjust our thinking around: buyer psychology. Forecasters are saying that a 6% rate is becoming the “new normal.” We can't keep waiting for rates to magically drop back to 3%. Eventually, buyers will accept that this is the going rate and adapt.

When this happens, we might actually see more buyers re-enter the market. They'll get past the sticker shock and realize they need to act. This could, in turn, lead to more competition for properties. National forecasts suggest modest price growth between 0.5% and 4% in 2026, which is a far cry from the double-digit jumps we’ve seen, but it’s still growth. It means the market won't necessarily crash, but it will demand a more strategic approach.

Refinancing: A Lifeline for Some Investors

For those of us who might have bought properties when rates were at their peak, say above 7% in late 2023, a move towards 6% in 2026 could be a welcome opportunity. This is where refinancing becomes a powerful tool. Locking in a lower rate can significantly reduce monthly principal and interest payments.

Think about the impact on your cash flow. Lowering those payments instantly boosts your profitability. It’s like getting a discount on your biggest expense. This is a key strategy for improving returns on existing investments and freeing up capital for future deals.

Key Takeaways for Savvy Investors

So, what does this all boil down to for us on the ground?

  • Cash Flow is King (More Than Ever): With borrowing costs higher, every dollar of expense matters. You have to do your homework. We need to meticulously analyze potential rental yields and operating costs to ensure our properties are generating positive cash flow from day one. There’s less room for error, and relying on rapid appreciation alone is a risky game.
  • Leverage Strategies Need Reinvention: Leverage is using borrowed money to make money, and it's a core part of real estate investing. But at 6% rates, we need to be smarter about how we use it. This is where specialized loans like DSCR (Debt Service Coverage Ratio) loans become incredibly important. These loans are based on the property's ability to generate enough income to cover its debt, which is perfect for investors.
  • Market Dynamics are Shifting: The wild west days of bidding wars and frantic offers are likely behind us. The market in 2026 is expected to be more balanced. This means sellers will need to be more realistic with their pricing. For us, this could mean more negotiating power and fewer situations where we’re forced to overpay. It’s a return to more traditional real estate deal-making.

In conclusion, mortgage rates near 6% in 2026 are not just a statistic; they’re a call to action for us as real estate investors. They demand careful financial planning, a deep understanding of how affordability and supply interact, and a willingness to explore innovative financing. The era of easy money and sky-high appreciation is giving way to a more deliberate, data-driven approach. By adapting our strategies now, we can continue to find success and build wealth in this evolving market.

🏡 Two Amazing Properties Available for Investors

Port Charlotte, FL
🏠 Property: Aldridge Ave
🛏️ Beds/Baths: 3 Bed • 2 Bath • 1548 sqft
💰 Price: $339,900 | Rent: $2,195
📊 Cap Rate: 5.8% | NOI: $1,643
📅 Year Built: 2025
📐 Price/Sq Ft: $220
🏙️ Neighborhood: A+

VS

Punta Gorda, FL
🏠 Property: Oceanic Rd
🛏️ Beds/Baths: 6 Bed • 4 Bath • 3032 sqft
💰 Price: $639,900 | Rent: $4,895
📊 Cap Rate: 6.9% | NOI: $3,685
📅 Year Built: 2025
📐 Price/Sq Ft: $212
🏙️ Neighborhood: B+

Florida’s A+ affordable rental vs Punta Gorda’s larger high‑yield property. Which fits YOUR investment strategy?

We have much more inventory available than what you see on our website – Let us know about your requirement.

📈 Choose Your Winner & Contact Us Today!

Talk to a Norada investment counselor (No Obligation):

(800) 611-3060


View All Properties

Also Read:

  • Mortgage Rates Forecast for the Next 90 Days: January-April 2026
  • Mortgage Rates Predictions for 2026 Backed by Top Housing Experts
  • Mortgage Rate Predictions for the Next 3 Years: 2026, 2027, 2028
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage, Real Estate, Real Estate Investing Tagged With: mortgage, mortgage rates, real estate, Real Estate Investing

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  • Mortgage Rates Today, February 20: 30-Year Refinance Rate Drops by 10 Basis Points
    February 20, 2026Marco Santarelli
  • 3 California Counties Skyrocket with Triple-Digit Sales Growth Amidst Market Slowdown
    February 20, 2026Marco Santarelli
  • Buyers Pull Back in the California Housing Market in January 2026
    February 20, 2026Marco Santarelli

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