Residential Property Trends for 2026: What Buyers and Sellers Can Expect

The residential property market in 2026 is expected to be a mixed bag for buyers and sellers. On the one hand, rising interest rates are making it more expensive to borrow money, which is putting downward pressure on prices. On the other hand, a persistent housing shortage is keeping prices from falling too far. As a result, we can expect to see a more balanced market in 2026, with less of the frenzied bidding wars that we saw in recent years. One of the biggest trends in the residential property market is the growing demand for smaller, more affordable homes. This is being driven by a number of factors, including the rising cost of living, the growing number of single-person households, and the desire for a more minimalist lifestyle. As a result, we are seeing a boom in the construction of townhouses, condos, and other forms of high-density housing. Another key trend is the increasing popularity of multigenerational living. With the cost of housing and childcare on the rise, more and more families are choosing to live together under one roof. This is leading to a growing demand for homes with in-law suites, accessory dwelling units (ADUs), and other features that can accommodate multiple generations. Finally, the residential property market is being shaped by the growing demand for sustainable and energy-efficient homes. Buyers are increasingly looking for homes with features like solar panels, rainwater harvesting systems, and high-efficiency appliances. This is not only good for the environment, but it can also lead to lower utility bills and a more comfortable living experience.