What to Expect in the Commercial and Residential Real Estate Market in 2026 – D. Sidney Potter
D. Sidney Potter Explains What to Expect The general consensus amongst many market makers in 2026 is a carbon copy of 2025, but slightly more tempered. Nothing wrong with a more somber and palliated forecast, given the heretical nature of 2025, which saw many unforeseeable events. Even jaded fellows such as myself were impressed. To name a few surprises in 2025 – that likely won’t make a reappearance in 2026, include the following: Given the excessive near hypnotic hoopla over Artificial Intelligence, the acceleration of this tech science was unprecedented this past year and was particularly vulnerable to cyber threats. Other outliers included a late surge in buyer activity in Fall 2025 (no one saw that coming, despite high interest rates), the increasing cost of homeowner overhead as a result of climate change (think insurance rates), and the rise of geopolitical events affecting buyer behavior. Real Estate Outlook in Commercial Here’s a bullet list of top highlights to expect in year 2026 of the year of our good Lord over the next 12 months – God willing. And in the light of divine positivity, commercial is discussed first given the sedate nature of residential in 2026, as notated above. Here goes for commercial: Market Outlook in Residential Fortunately, and to lighten the mode a bit, it’s not as if residential real estate is expected to go to Hell in a Handbasket, per se. As a disclaimer, not certain why the religious overtone for this year’s predictions, since real estate is a fairly agnostic science. Could be because the time of year – since forecasts are written during a religious themed month that includes the likes of Christmas, Kwanzaa and Hanukkah. But here goes, and in the interest of brevity, more bullet points: Summary Despite a tranquil and placid forecast for residential in 2026, there will be more movement in some areas; given sales are expected to rise, interest rates are expected to lower, and the pricing on residential product will slow down. Commercial on the other hand is a whole different ball of wax, where one can expect a whole lotta hollering from the back pews as buyers will raise prices and more trades will be at record highs. Until then, rest easy and say a pray to the real estate Gods, in that there are more winners then losers over the next year. Amen. Author Bio Real estate writer D. Sidney Potter is based in Southern California. He has a PhD (ABD) from the University of Arizona, a law degree (Juris Master) from Florida State University College of Law and a bachelor’s degree (BA) from Cal Poly Pomona in political science.
