5 Things the 1% Are Doing With Their Real Estate Investments in 2026

Core Insights - The 2026 Housing Forecast predicts a 2.2% increase in home prices and an 8.9% rise in existing home inventory, with improved buyer conditions due to lower mortgage rates and rising incomes [1] - The average 30-year mortgage rate is expected to decrease to around 6.3%, leading to a projected 1.7% growth in home sales, equating to approximately 4.13 million homes [1] - Monthly payments for a typical home are anticipated to drop to 29.3% of median income, falling below 30% for the first time since 2022, indicating improved affordability [2] Real Estate Investment Strategies - Top 1% investors are diversifying their portfolios by focusing on smaller, faster-growing cities in the Southeast and Midwest, where price-to-rent ratios are more favorable [4] - Regular investors can adopt similar strategies by exploring various options for building a real estate portfolio, such as creating accessory dwelling units (ADUs) for short-term rentals [5] - Identifying profitable markets involves using advanced modeling techniques, and everyday investors can utilize tools like Roofstock, Google Trends, and PropStream to find areas with growing demand [6] Research and Market Analysis - To succeed in real estate investment in 2026, more time must be dedicated to researching different markets to identify those with potential for value appreciation [7]