{"id":186513,"date":"2026-01-15T11:56:47","date_gmt":"2026-01-15T18:56:47","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=186513"},"modified":"2026-01-15T11:57:07","modified_gmt":"2026-01-15T18:57:07","slug":"how-to-make-money-in-a-boring-housing-market","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/how-to-make-money-in-a-boring-housing-market","title":{"rendered":"No Crash, No Boom: How to Make Money in a “Boring,” Normalized Housing Market"},"content":{"rendered":"\n

Slow doesn\u2019t have to mean no <\/span>cash flow<\/span><\/a>. Just because most experts have predicted a monotonous real estate market for 2026, with no crash or boom, doesn\u2019t mean there aren\u2019t still opportunities for disciplined investors.<\/span><\/p>\n\n\n\n

\u201cHousing demand <\/span>is constrained<\/span> by a lack of affordability\u2014high prices, elevated mortgage rates\u2014while rising fears of joblessness are further depressing homebuyer appetite,” James Knightley, chief international economist at ING, told<\/span> Reuters<\/span><\/a>. “At the same time, supply is on the rise, with insurance and <\/span>property taxes<\/span><\/a> putting financial pressure on stretched homeowners.\u201d<\/span><\/p>\n\n\n\n

If all that sounds a bit morose, even in the light of three interest rate cuts from the Federal Reserve so far, the good news is that history has shown us that malaise in the market doesn\u2019t last forever. <\/span>Rather<\/span>, they offer long-term investors a chance to strategize and align their finances for when the market picks up again.<\/span><\/p>\n\n\n\n

An Equity Hiatus<\/span><\/h2>\n\n\n\n

Real estate analytics site<\/span> Cotality<\/span><\/a> offered some specificity on the current <\/span>state of the<\/span> market, reporting that home price growth slowed from 3.4% in January 2025 to 1.1% in October, the lowest rate since 2012. Meanwhile, a Reuters poll of property experts predicted that home prices will rise just 1.4% in 2026, while rates will remain above 6%.<\/span><\/p>\n\n\n\n

The truly sobering news for investors is that amid a stultified market, Cotality reported that single-family rent growth slowed to a 15-year low by late 2025, with many large metros seeing flat or even slightly declining rents as large numbers of <\/span>multifamily<\/span><\/a> construction hit the market. <\/span>This<\/span> was echoed by<\/span> CNN<\/span><\/a>, citing Bank of America data. <\/span><\/p>\n\n\n\n

While this gives respite to cash-strapped tenants, it does little to assuage the concerns of investors worried about higher expenses, such as taxes, insurance, and maintenance.<\/span><\/p>\n\n\n\n

\u201cNo Cash Flow Mention \u2019Til \u201927\u201d<\/span><\/h2>\n\n\n\n

A couple of years ago, during the dying days of the Biden administration, investors were being advised to \u201cstay alive until \u201925.\u201d Now it appears that the cogent advice is \u201cNo cash flow mention \u2019til 27.\u201d <\/span><\/p>\n\n\n\n

Redfin, as quoted by CNN, has labeled 2026 \u201cThe Great Housing Reset\u201d and projects that rents could increase by roughly 2% to 3% year over year by the end of 2026<\/span>, <\/span>as <\/span>the delivery of<\/span> new <\/span>apartments slows<\/span>.<\/span><\/p>\n\n\n\n

For smaller landlords who wish to remain active in the market, this means underwriting deals with conservative rent assumptions and focusing on submarkets where local growth supports steady occupancy.<\/span><\/p>\n\n\n\n

Finding Opportunities in a \u201cBoring\u201d Market<\/span><\/h2>\n\n\n\n

Warren Buffett\u2019s<\/span> sage advice<\/span><\/a> on investing is worth remembering in today\u2019s market: “Be fearful when others are greedy, and greedy when others are fearful.\u201d Because rents and home prices are not soaring amid relatively high interest rates and affordability concerns, many buyers are sitting out a stagnant market. <\/span>This means <\/span>with<\/span> less competition, this is an ideal time to buy.<\/span><\/p>\n\n\n\n

Many investors have taken this advice to heart, choosing the lack of homeowner activity to scoop up deals.<\/span> Cotality\u2019s investor data<\/span><\/a> shows that investors accounted for just under one-third of single-family home purchases through October 2025, spending about $483 billion. <\/span>That spending was primarily focused<\/span> on long-term rentals rather than short-term <\/span>flips<\/span><\/a>.<\/span><\/p>\n\n\n\n

A Nuanced Picture<\/span><\/h2>\n\n\n\n

The U.S. real estate market is never a one-size-fits-all for investors, as regional differences <\/span>are pronounced<\/span>. <\/span>This<\/span> is where prospective landlords can take advantage. Looking for increased inventory and increased days on market can offer insights as to where to find deals.<\/span><\/p>\n\n\n\n

Cotality\u2019s December 2025 report noted that the Washington, D.C., area had a record 60% year-over-year jump in inventory in November, following federal layoffs and a government shutdown. <\/span>The nearby Frederick-Gaithersburg-Bethesda, Maryland, area saw a 68% increase in inventory <\/span>year over year<\/span>, with days on market rising rapidly as well.<\/span><\/p>\n\n\n\n

There was a similar story in several Western and Sunbelt states, according to<\/span> Realtor.com<\/span><\/a>, where price cuts escalated as inventory climbed back above 2019 levels, as buyers balked at 6%+ interest rates. Although <\/span>national prices were still up by 2.3% year over year<\/span><\/a> through August, softer conditions in several states create more favorable buying conditions.<\/span><\/p>\n\n\n\n

Practical Moves for Investors for 2026 and Beyond<\/span><\/h2>\n\n\n\n

Focus on the things you can control<\/span><\/h3>\n\n\n\n

\u201cSmall wins rather than slam dunks\u201d should be the general real estate investment motto for 2026. Of course, no one would turn down a big payday if they come across it, but they might be a bit thin on the ground.<\/span><\/p>\n\n\n\n

Instead of a <\/span>big<\/span> flip, soaring equity, or expansive rent growth, focusing on the things you can control, such as intelligent financing, clever property choices, skilled price negotiation, and <\/span>smart<\/span> management choices, is the prudent way to address investing this year.  <\/span><\/p>\n\n\n\n

Eliminate debt<\/span><\/h3>\n\n\n\n

Starting from a clean slate helps when planning for the future. Simply saving W-2 or rental income and paying off debt, including consumer debt, helps increase cash flow without raising rents or taking out new loans. Stacking reserves also means you will <\/span>be better placed<\/span> to secure financing when you are ready to pursue a deal, instead of going to a lender seeking maximum leverage.<\/span><\/p>\n\n\n\n

Curate a \u201cbuy <\/span>box\u201d<\/span><\/h3>\n\n\n\n

Start analyzing regions and neighborhoods that fit your investment criteria. Rising rent growth, job availability, and low insurance and tax rates should all play a part in your decision-making. <\/span><\/p>\n\n\n\n

If you find your ideal investment choice is in an area you do not live in but would consider, your first investment could be an owner-occupied small multifamily, which you could secure with an FHA loan and <\/span>house hack<\/span><\/a>, thereby lowering your expenses while you look for more opportunities.<\/span><\/p>\n\n\n\n

Use your existing equity <\/span>wisely<\/span><\/h3>\n\n\n\n

This reset period could be a good opportunity to access your accumulated home <\/span>equity<\/span><\/a> to purchase a new property, complete repairs on existing properties, or reposition financing, all <\/span>with the goal of increasing cash flow and paying<\/span> down additional debt before investing again.<\/span><\/p>\n\n\n\n

Final Thoughts<\/span><\/h2>\n\n\n\n

One of the best cash flow strategies for 2026 amid a stalled market is investing in small multifamily rentals, which are likely to <\/span>give an investor<\/span> more bang for <\/span>their<\/span> buck than single-family homes.<\/span> These days, that does not refer solely to <\/span>two-to-four-unit<\/span> buildings<\/span>, <\/span>but can also include a single-family rental with an additional <\/span>ADU<\/span><\/a>.<\/span> Even adding a finished basement to an existing rental property to increase cash flow could be a win-win. <\/span><\/p>\n\n\n\n

The bottom line:<\/span> Work with what you\u2019ve got. Taking out extra loans and leveraging when you can increase cash flow with your current portfolio, or purchasing more than one unit at once\u2014thus mitigating risk across units\u2014is a savvy move in a stagnant market when money is tight.<\/span><\/p>\n\n\n\n

The Midwest seems to be the best place to invest in 2026 based on <\/span>its<\/span> affordability metrics.<\/span> LandlordStudio<\/span><\/a>\u2019s 2026 guide identifies Cleveland, Indianapolis, Columbus, and Kansas City as top cash flow markets <\/span>due to<\/span> entry prices of $150,000 to $300,000 and targeted 8%-12% <\/span>cash-on-cash returns<\/span><\/a> for well-run rentals.<\/span><\/p>\n\n\n\n

PropStream\u2019s<\/span> Top Affordable Real Estate Markets For New Investors 2026<\/span><\/a> is of a similar mind, emphasizing that positive cash flow <\/span>is to<\/span> be found<\/span> in metros with below-median house prices and <\/span>solid<\/span> rental demand.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Slow doesn\u2019t have to mean no cash flow. Just because most experts have predicted a monotonous real estate market for 2026, with no crash or boom, doesn\u2019t mean there aren\u2019t […]<\/p>\n","protected":false},"author":613725,"featured_media":184474,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-186513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186513","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\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=186513"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186513\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/184474"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=186513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=186513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=186513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}