{"id":185980,"date":"2026-01-08T07:24:02","date_gmt":"2026-01-08T14:24:02","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=185980"},"modified":"2026-01-08T07:29:16","modified_gmt":"2026-01-08T14:29:16","slug":"pulse-2026","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/pulse-2026","title":{"rendered":"We Surveyed Over 600 BiggerPockets Members\u2014Here&#8217;s What They Said About Investing in 2026"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Retail real estate investors are optimistic about investing<\/span> <span data-preserver-spaces=\"true\">conditions<\/span> <span data-preserver-spaces=\"true\">and are looking to grow,\u00a0 heading into 2026, according to our <a href=\"https:\/\/get.biggerpockets.com\/pulse\/\" target=\"_blank\" rel=\"noreferrer noopener\">BiggerPockets Pulse survey<\/a>, taken in late 2025.\u00a0\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Despite a slow and uncertain market in 2025, investor sentiment has improved over the last 12 months, and expectations are high for 2026. Across experience levels and geographic regions, investors see opportunity in the year to come, citing diverse benefits in the current market, such as:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Lower mortgage rates<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Increased negotiating leverage<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Falling prices<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Better inventory<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">As such, the vast majority of retail real estate investors are planning for an active year in 2026, prioritizing growth and optimization.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, with lower affordability, rising expenses, and oversaturation in certain markets, tactics have to change to make the most of these new opportunities. As an investor, you can learn a lot from what other players in our industry are planning, so read on to find actionable insights about how investors are approaching the coming year from <a href=\"https:\/\/get.biggerpockets.com\/pulse\/\" target=\"_blank\" rel=\"noreferrer noopener\">BiggerPockets Pulse<\/a><\/span>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investing Conditions<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Investor sentiment increased modestly in 2025, with our Pulse Index for the last 12 months measuring 108 (100 is neutral, and anything over 100 is positive).<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1748\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_12-scaled.jpg\" alt=\"pulse index\" class=\"wp-image-185996\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_12-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_12-300x205.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_12-1024x699.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_12-768x525.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_12-1536x1049.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_12-2048x1399.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">A modest change in sentiment is the most that anyone could reasonably expect, as the housing market has remained stubbornly unchanged for most of the year. Home sales have ticked up, but by an almost imperceptible amount. Mortgage rates have fallen year over year, but not to a level where it\u2019s materially changing demand. The median sales price is up just 1% to 2% year over year, depending on who you ask\u2014so it\u2019s essentially flat.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1784\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_08-scaled.jpg\" alt=\"graph of current conditions for real estate\" class=\"wp-image-186000\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_08-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_08-300x209.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_08-1024x713.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_08-768x535.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_08-1536x1070.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_08-2048x1427.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">That said, bright spots have started to emerge. Inventory is up, leading to better deal flow and negotiating leverage. With stagnant real price growth and declining interest rates, affordability is <\/span><span data-preserver-spaces=\"true\">starting<\/span><span data-preserver-spaces=\"true\"> to improve<\/span><span data-preserver-spaces=\"true\">. Buying conditions are slowly getting better.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The combined impact of these modest shifts has lifted sentiment, but investors see the bigger changes to fundamentals coming in the near future. Building on the shifting trends of 2025, investor expectations for the next 12 months are optimistic. Our Pulse Index for the next 12 months measures 150, with 50% of investors expecting conditions to either \u201cimprove somewhat\u201d or \u201cimprove significantly.\u201d&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1748\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_13-scaled.jpg\" alt=\"pulse index over next 12 months\" class=\"wp-image-185995\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_13-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_13-300x205.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_13-1024x699.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_13-768x525.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_13-1536x1049.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_13-2048x1399.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Only 15% of investors expect conditions to worsen. Of these investors, most <\/span><span data-preserver-spaces=\"true\">are concentrated<\/span><span data-preserver-spaces=\"true\"> in the more expensive Northeast and Western regions.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1440\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_07-scaled.jpg\" alt=\"graph of expectations for next 12 months by region\n\" class=\"wp-image-186001\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_07-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_07-300x169.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_07-1024x576.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_07-768x432.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_07-1536x864.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_07-2048x1152.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">The causes for optimism are rather broad, as investors cite a variety of expected improvements in investing conditions:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Increasing inventory<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Falling prices<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Lower mortgage rates<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Better negotiating leverage&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1784\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_10-scaled.jpg\" alt=\"graph of biggest opportunities in real estate\" class=\"wp-image-185998\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_10-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_10-300x209.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_10-1024x713.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_10-768x535.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_10-1536x1070.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_10-2048x1427.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">These expectations are reasonable, in my view, given that positive shifts are already starting to take shape. Prices are falling in over 50% of metros as of this writing, rates have come down by almost 1% since January 2025, inventory is up about 8% YoY, and days on market are up by double digits.\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s no wonder that investors with a long-term outlook think fundamentals are shifting for the better. After all, it would be hard for them to get much worse than where we\u2019ve been the last few years.\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Despite cautious optimism about the market, challenges remain. Investors equally cite the three biggest challenges facing retail real estate investors:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Lack of capital for new deals<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Difficulty finding new deals<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Rising expenses<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">When you look at the data by experience level, you see that newer investors are unsurprisingly worried about capital-constrained slowing growth. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is often the reality of starting an investing career, regardless of external market conditions.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Meanwhile, experienced investors are increasingly concerned about rising expenses, including insurance and taxes. Interestingly, no group seems particularly worried about falling home prices or stagnant rents.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1440\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_09-scaled.jpg\" alt=\"graph of biggest challenges by number of properties\" class=\"wp-image-185999\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_09-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_09-300x169.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_09-1024x576.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_09-768x432.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_09-1536x864.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_09-2048x1152.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Even though sentiment is improving, the reality is that short-term market conditions remain uncertain, and investors are increasingly focused on tried-and-true strategies that emphasize long-term returns. More than 50% of investors believe long-term rentals are the best option going forward, while 1 in 5 investors believe owner-occupied tactics like house hacking and live-in-flips will work best.\u00a0<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1440\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_01-scaled.jpg\" alt=\"graph of Best Strategy by number of properties\" class=\"wp-image-186007\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_01-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_01-300x169.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_01-1024x576.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_01-768x432.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_01-1536x864.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_01-2048x1152.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Investor enthusiasm for tactics that have shown success in recent years, such as short-term rentals (STRs) and mid-term rentals (MTRs), has waned significantly, though newer investors still show some interest\u2014likely due to their increased cash flow potential.\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With many metros seeing price corrections, trust in house flipping is low, <\/span><span data-preserver-spaces=\"true\">with<\/span><span data-preserver-spaces=\"true\"> only 9% of investors with <\/span><span data-preserver-spaces=\"true\">two<\/span><span data-preserver-spaces=\"true\"> to <\/span><span data-preserver-spaces=\"true\">five<\/span><span data-preserver-spaces=\"true\"> properties <\/span><span data-preserver-spaces=\"true\">preferring<\/span><span data-preserver-spaces=\"true\"> this strategy.<\/span><span data-preserver-spaces=\"true\"> However, flipping interest does increase as investors gain experience.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Given the expected improvement in investing conditions, the majority of investors (57%) intend to focus on portfolio growth in the coming year. A quarter of investors plan to focus on optimizing their existing portfolio, while less than 3% intend to downsize\u2014all signals that retail real estate investors are focused on the long-term benefits of real estate investing far more than short-term returns.\u00a0<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1784\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_02-scaled.jpg\" alt=\"graph of main priorities over next 12 months\" class=\"wp-image-186006\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_02-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_02-300x209.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_02-1024x713.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_02-768x535.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_02-1536x1070.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_02-2048x1427.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2026 Forecasts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Heading into 2026, retail real estate investors <\/span><span data-preserver-spaces=\"true\">are almost perfectly split<\/span><span data-preserver-spaces=\"true\"> over the direction of the housing market. The only clear consensus is that prices won\u2019t move significantly in either direction. <\/span><span data-preserver-spaces=\"true\">Only 3% of investors expect above-average appreciation of more than 5%, and <\/span><span data-preserver-spaces=\"true\">similarly,<\/span><span data-preserver-spaces=\"true\"> only 5% <\/span><span data-preserver-spaces=\"true\">of investors<\/span><span data-preserver-spaces=\"true\"> expect declines to surpass 5%.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1784\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_05-scaled.jpg\" alt=\"graph of home price expectations over next 12 months\" class=\"wp-image-186003\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_05-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_05-300x209.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_05-1024x713.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_05-768x535.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_05-1536x1070.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_05-2048x1427.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Investor opinions about national home prices do seem to be influenced by the investor\u2019s home market, however. Regions that have shown resilient appreciation rates in recent years, the Midwest and Northeast, are more likely to expect the national market to move up. Meanwhile, the South and West, which hold the majority of the markets seeing corrections, are more likely to see declines continuing.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1784\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_06-scaled.jpg\" alt=\"map of home price expectations by state\" class=\"wp-image-186002\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_06-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_06-300x209.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_06-1024x713.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_06-768x535.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_06-1536x1070.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_06-2048x1427.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Investors are <\/span><span data-preserver-spaces=\"true\">somewhat<\/span><span data-preserver-spaces=\"true\"> more optimistic <\/span><span data-preserver-spaces=\"true\">in their expectations for<\/span><span data-preserver-spaces=\"true\"> mortgage rates <\/span><span data-preserver-spaces=\"true\">to fall<\/span><span data-preserver-spaces=\"true\"> in the coming years.<\/span><span data-preserver-spaces=\"true\"> Indeed, 48% of respondents expect rates to drop below 6% from their current range of 6% to 6.49%, while 35% expect rates to stay flat, and 21% think rates will increase.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1784\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_03-scaled.jpg\" alt=\"graph of mortgage rate expectations\" class=\"wp-image-186005\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_03-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_03-300x209.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_03-1024x713.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_03-768x535.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_03-1536x1070.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_03-2048x1427.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Despite tepid rent growth over the last year, investors are expecting rent growth to remain positive in 2026. <\/span><span data-preserver-spaces=\"true\">Investors in the Midwest, having seen strong rent growth for several straight years, are the most optimistic about continued rent increases, but very few expect the outsized rent growth of more than 5% <\/span><span data-preserver-spaces=\"true\">year over year<\/span><span data-preserver-spaces=\"true\"> to continue into 2026.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1440\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_11-scaled.jpg\" alt=\"graph of rent growth expectation by region\" class=\"wp-image-185997\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_11-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_11-300x169.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_11-1024x576.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_11-768x432.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_11-1536x864.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_11-2048x1152.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Current Events&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Beyond the housing market, investors are watching what\u2019s happening with national macroeconomic trends<\/span> <span data-preserver-spaces=\"true\">and expect to factor these trends into their investing decisions in the coming year.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Generally speaking, investors have a negative view of macroeconomic conditions right now. Nearly 50% are concerned about the labor market, while only 16% have a <\/span><span data-preserver-spaces=\"true\">positive<\/span><span data-preserver-spaces=\"true\"> view of employment conditions. <\/span><span data-preserver-spaces=\"true\">And 42% of respondents <\/span><span data-preserver-spaces=\"true\">feel<\/span><span data-preserver-spaces=\"true\"> tariffs <\/span><span data-preserver-spaces=\"true\">will<\/span><span data-preserver-spaces=\"true\"> negatively impact their portfolios <\/span><span data-preserver-spaces=\"true\">in<\/span><span data-preserver-spaces=\"true\"> the next 12 months, while only 4% expect a positive impact.<\/span><span data-preserver-spaces=\"true\"> In the meantime, 95% of investors think inflation is a concern going into the <\/span><span data-preserver-spaces=\"true\">next<\/span><span data-preserver-spaces=\"true\"> year.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But despite these concerns, macro conditions are not the main factor guiding <\/span><span data-preserver-spaces=\"true\">investing decisions for<\/span><span data-preserver-spaces=\"true\"> real estate investors.<\/span><span data-preserver-spaces=\"true\"> Less than 30% of investors say macro conditions will play a <\/span><span data-preserver-spaces=\"true\">big<\/span><span data-preserver-spaces=\"true\"> role in their decision-making in the coming year.&nbsp; Experienced investors are even less concerned about the national economy (22% of those surveyed), and seem more inclined to focus on the details of their portfolios<\/span><span data-preserver-spaces=\"true\">, while<\/span><span data-preserver-spaces=\"true\"> new investors are more inclined to change tactics based on macro trends.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1441\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/12-scaled.png\" alt=\"graph of economics and its impact\" class=\"wp-image-186084\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/12-scaled.png 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/12-300x169.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/12-1024x576.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/12-768x432.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/12-1536x864.png 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/12-2048x1153.png 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Of all the questions asked in the survey, one stood out as having the broadest consensus: Investors do not like <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/do-50-year-mortgages-make-sense-for-real-estate-investors\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the idea of a 50-year mortgage<\/span><\/a><span data-preserver-spaces=\"true\">. More than 60% have a negative view of the idea, with only 13% supporting a potential 50-year mortgage.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1784\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_04-scaled.jpg\" alt=\"graph showing investor attitudes towards a 50-year mortgage\" class=\"wp-image-186004\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_04-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_04-300x209.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_04-1024x713.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_04-768x535.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_04-1536x1070.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/12\/BP_Pulse-Survey_Blog-Images_Page_04-2048x1427.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">We\u2019ve yet to hear any updates on whether a 50-year mortgage is coming our way, but it seems safe to say most investors will pass on it, even if it does become available. <\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Conclusion<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">As investors turn the page on a stagnant and transitional 2025, most are looking forward to better investing conditions in the year to come.<\/span> <span data-preserver-spaces=\"true\">Falling prices, improved inventory, and better deal flow can all be a boon to the many long-term-focused investors who are seeking to grow their portfolio in 2026.\u00a0<\/span><\/p>\n\n\n\n<p>If you&#8217;re interested in reading the full report, <a href=\"https:\/\/get.biggerpockets.com\/pulse\/\" target=\"_blank\" rel=\"noreferrer noopener\">click here<\/a>!<\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">How does the general sentiment of the BiggerPockets community stack up to your own feelings? Let us know in the comments section.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">About the survey<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">BiggerPockets is a community of retail real estate investors<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">with over 3 million members<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">who in aggregate make up the largest bloc of residential property investors in the United States.<\/span><span data-preserver-spaces=\"true\"> The BiggerPockets Pulse is a quarterly survey that measures and shares the sentiment and intended behavior of this <\/span><span data-preserver-spaces=\"true\">important<\/span><span data-preserver-spaces=\"true\"> economic force.&nbsp;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retail real estate investors are optimistic about investing conditions and are looking to grow,\u00a0 heading into 2026, according to our BiggerPockets Pulse survey, taken in late 2025.\u00a0\u00a0 Despite a slow [&hellip;]<\/p>\n","protected":false},"author":108611,"featured_media":186429,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[7419],"class_list":["post-185980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","tag-biggerpockets-pulse"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/108611"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=185980"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185980\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/186429"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=185980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=185980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=185980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}