
Housing-investor sentiment hits a three-year low as rates and costs surge
Investor sentiment in the single-family housing market has dropped to an all-time low, with 45% saying conditions have worsened and only 26% saying they’re better. Financial headwinds—higher mortgage rates, rising insurance and renovation costs—and Iran-related geopolitical tensions are driving pessimism, while housing purchases fell in Q1 2026 and about one-third of investors plan no acquisitions this year. More than half expect prices to rise in the next six months, which could raise acquisition costs even as property values may increase. The shift is most pronounced among small- to mid-sized investors, with large institutions facing different constraints under new housing legislation.

