US housing investors are becoming increasingly cautious about adding properties to their portfolios, with nearly one-third saying they do not plan to make any purchases this year.
As financing costs remain elevated and expenses across the housing market continue to rise, 32% of surveyed US real estate investors said they do not intend to buy any properties in 2026, according to the latest RCN Capital/CJ Patrick Company Investor Sentiment Index.
The finding comes as sentiment among investors in the single-family housing market has deteriorated sharply. The quarterly index, which surveys more than 300 investors involved in fix-and-flip and rental businesses, fell to an all-time low at the end of June.
Only 26% of respondents said market conditions were better than a year earlier, down from 35% in the first quarter, as per CNBC. Meanwhile, 45% said conditions had worsened, the highest proportion recorded since the survey began in 2023.
The weakness is also showing up in actual buying activity. Real estate investors purchased 23% fewer homes in the first quarter of 2026 compared with both the previous quarter and the first quarter of 2025. Just 9% of respondents said they expect to buy more properties this year than they did last year.
Also Read: Gulf Projects Drive Trump's Foreign Real Estate Income Up 71% to $59.5 Million
Financing costs remain a major hurdle
More than half of investors identified the high cost of financing as one of the biggest problems facing the market. Around three-quarters do not expect meaningful relief in borrowing costs anytime soon, while some anticipate rates could move higher.
Mortgage rates, which had reached a recent low in late February, climbed sharply after the outbreak of the Iran war and are now at their highest level in more than a year.
Investors are also contending with limited housing inventory, higher acquisition and renovation costs, rising insurance expenses, and pressure on rental rates.
Yet the outlook for property prices remains firm. More than 60% of respondents expect home prices to rise over the next six months, up from just under 52% previously.
Also Read: No More 12-Min Limit: Govt Scraps TV Ad Duration Cap To Level Playing Field With Digital Media
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
