Big changes are coming to the real estate market in the next 12 months, and property managers will feel many of the effects firsthand. From the impact of slowing apartment construction on rent growth to changing affordability conditions in the for-sale housing market, the 2026 real estate market trends we’ll cover in this post will shape how property managers attract clients and residents, maintain occupancy, and grow their portfolios.
#1: The Pace of Apartment Construction Will Slow Considerably
In 2026, apartment construction is expected to slow down to levels last seen in the late 2010s, with developers pulling back amid tighter financing conditions, rising costs, and economic uncertainty. With fewer apartments coming online and rental demand remaining strong, competition for existing units will increase, helping rent growth return to a range of 2 to 3%, according to Redfin. We expect this change will be particularly noticeable in heavily-built Sun Belt markets where the influx of new supply has caused rent prices to soften in recent years.
#2: Buying a Home Will Become a Little More Affordable in 2026
In the second half of 2025, the Federal Reserve began lowering interest rates in line with the weakening labor market as well as persistent inflation. Realtor.com predicts that mortgage rates will average 6.3% this year, with the Fed unlikely to lower them much farther unless conditions change significantly (or unless Fed chair Jerome Powell’s replacement implements a dramatic shift in policy heading into the second half of the year). But with existing-home prices expected to increase by 2.2%—slower than the growth Realtor.com anticipates for both wages and inflation—homebuying is expected to become slightly more attainable in 2026.
#3: But, Renting Remains More Affordable, Continuing to Drive Rental Demand
Rental affordability has seen some improvement in recent years as the increase in apartment supply has helped to meet the strong demand from renters. In addition, Zillow says, wage growth has outpaced rent growth over the past year. In the short term, this is good news for renters. However, in the long run, the current slowdown in multifamily permitting will contribute to the long-term shortage of affordable housing in the U.S., driving rent prices up.
#4: Single-Family Rent Growth Will Outpace Multifamily Rent Growth
Overall, the slowdown in apartment construction will help to stabilize rent growth in 2026. But Zillow projects that we’ll see different conditions in the multifamily and single-family sectors. Single-family rent growth is expected to reach 2.3%, as many renters’ inability to purchase a home keeps demand for rental homes strong. Meanwhile, multifamily rent growth is projected to remain nearly flat at 0.3% as the wave of new supply from the past few years continues to be absorbed by the market.
#5: Accidental Landlords Will Increase, Driving Demand for Property Managers
The cool sales market we saw throughout 2025 was the result of an excess of listings in relation to the number of interested buyers, largely driven by high home prices and mortgage rates. These conditions caused the population of Accidental Landlords to grow—property owners who take their homes off the market and rent them out as they wait for sales conditions to improve. Accidental Landlords’ lack of expertise on operating rental properties in compliance with local laws and industry best practices has driven demand for property management services, and this trend is expected to continue. Realtor.com projects that in 2026, though existing-home sales will increase by 1.7%, the supply of homes on the market will continue to outweigh the demand as affordability challenges continue.
The 2026 State of the Property Management Industry Report
The landscape of challenges and opportunities that property management companies face in 2026 is unlike what we’ve seen in past years. Buildium’s 11th annual Property Management Industry Report combines our surveys of thousands of property management professionals, renters, and rental owners with in-depth interviews of industry experts to bring you an unparalleled view into what’s going on in the rental market today. Download your free copy to learn how:
- AI and automation are unlocking efficiency
- Preventative maintenance proves value
- Tenant quality is the top challenge
- Growth is increasingly about balance
- And more
Frequently Asked Questions About 2026 Real Estate Market Trends
Will the Increase in Accidental Landlords Make It Easier to Add Doors?
Yes, homeowners who are unable to sell their properties often turn to professional management. These owners typically need comprehensive services, making them ideal clients for full-service property management companies.
Where Will New Rental Supply Put the Most Pressure on Pricing and Occupancy?
Sun Belt metros with significant multifamily construction pipelines will likely face the most pressure, though this will decrease throughout 2026 as apartment deliveries slow. Markets adding a high percentage of new inventory often see increased concessions and longer leasing timelines.
How Should Property Managers Prepare for Slowing Apartment Construction?
With fewer new units competing for renters, well-maintained properties with strong service offerings will stand out. Focus on resident retention, invest in property updates, and leverage technology for better operational efficiency.
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