Looking ahead in 2026, there are quite a few interesting components that will shape our market.
These trends are more serious than a widespread trend that means nothing, like ‘6 7’, but many of these trends have real meaning and will present profit to those that pay attention.
Trend:
1. Spending Driving GDP Growth
Retroactive tax cuts put in place by the passage of the OBBB summer 2025 are effective for 2025, meaning as tax returns are filed in early 2026, the reduction in taxes and refunds will pour back into the economy.
The Personal Credits:
- No tax on tips & Overtime
- Increase in SALT deduction to $40K
- Senior Citizen deduction
- Expanded Child Tax Credit
These credits will lift early year 2025 spending.
For businesses & Investors
- R&D Immediate expensing
- Bonus Depreciation at 100%
- Interest Deduction limitation moved back to more favorable EBITDA standards, -Increased section 179 deductions
How to profit:
As both businesses and consumers spend more in the first half of 2026, we expect healthy economic activity.
For Landlords- higher lease rates and faster lease up.
For Owners looking to sell – higher CAP rates and more buyers.
Tariffs
While the effects of tariffs are still being worked through, as businesses have time to adapt, we believe more US based Manufacturing will boost jobs and create more domestic spending.
The short term effects will increase price inflation, but the long term goal, if played out as planned will create more US jobs and spending and keep pricing in check.
How to Profit:
Look for investments near industries that are growing their base in US, like manufacturing. Hanover, PA is a great local example of a solid manufacturing base that is growing. Solid jobs mean great rentla income for the Investor.
Real Estate Pricing
While some markets in the US are seeing continued soft pricing in a buyer’s market, the overall real estate market has held steady.
For markets where rents have remained steady, it presents opportunity for investors to benefit from slower competition and reasonable pricing.
How to Profit:
For the well capitalized investor, now is a great time to locate markets where distress has been evident, but fundamentals are strong, and invest heavily in distresses assets. Hang on until the market rises.
Some of the best markets will be where pricing is currently soft, but are experiencing increased spending in US based Manufacturing. With policies to continue to favor the US manufacture, the locations with a total increase of Manufacturing or Tech will see the best pricing rebounds.
Interest Rates
A new Fed Chair next May will likely reflect a Trump friendly policy, which has aggressively stated that interest rates should come down.
Provided the Federal Government makes wise choices in its debt obligations, and Federal spending is checked, a lower Fed Interest Rate and strong investor confidence should bring down the interest rate for the consumer.
Meanwhile, Quantitative easement has begun again, quietly. But no, we aren’t calling it QE, just an ‘Expansion of the Balance Sheet’.
Because of the debt levels the government carries, they must ensure the Fed Funds Rate is low to make sure their interest payments remain in control. And, they must also ensure the market is liquid to promote borrowing and spending by the consumer, to keep the taxes coming in.
How to Profit:
The signals from the Fed indicate a high likelihood that inflation will increase. As interest rates decrease, locking in long term fixed debt on solid properties will be the investor’s best hedge.
Construction Pricing
Because of limited new construction, rents have begun to recover in high supply markets. Tariffs have affected the pricing of commercial buildings requiring steel, more than wood frame buildings, as wood is a product that the US can source internally.
The administration has also been pushing for raw materials needed in manufacturing and building that are mainly sourced from countries like China, to be replaced with sourcing from countries we have friendly relationships with. Recently, deals made in South Korea, Ukraine, Australia, Southeast Asia and more.
How to Profit:
As these supplies come into the economy and our manufacturing ramps up, the overall pricing for building components should experience softening. Once they do, construction projects will look favorable again.
Power
While data centers will boost spending in the local economy in the short term, the long-term effect on the local job market will not be significant. The effects on the market that will stick around will be for fuel to those centers: mainly power.
The markets with significant power resources will continue to see these huge investments to bring these online.
How to Profit:
Pennsylvania is a net Exporter of energy, which has made them attractive for data centers. This is great for the investor in these markets with strong job growth and secondary spending that keeps money flowing.
Healthcare
Increased government focus on the healthcare of Americans, and the spending directly toward it will continue to push dollars into this sector. Another government shutdown seems likely in Jan 2026 as the budget negotiations come up yet again before the legislature.
How to Profit:
For the real estate investor, this continues to make any location near medical facilities a great long term growth plan as spending and investment in health care does not appear to be decreasing anytime soon. Some sort of increased government subsidy seems likely, which will push this demand along the spectrum.
Mental Health
Many Americans have been putting an increased focus on mental health since COVID 19. This is also an long term trend that investors can watch and integrate with.
How to Profit:
Apartment buildings that hold amenities to support mental and physical wellbeing, like saunas, soundbath, and outdoor amenities like walking/bike trails, parks and recreation; will attract tenants that value these amenities and pay more for them.
Environmental Friendly
While some of the green incentives under the Biden administration have been removed with the Trump Admin, there is a window of opportunity for commercial solar installation to still benefit from solar tax credits, only affective for commercial buildings until end of 2027.
How to Profit:
For owners with apartment buildings, installing panels that would be net metered back to the grid when not used for common electric would be a nice add with extra tax sweetness.
Conclusion:
Man, it looks like 2026 is going to be quite the year!
Remember, your success is someone else’s miracle.
Go prosper and share the goodness with others.
Many of our clients are making strategic moves in 2026, knowing now is the time to not follow the herd. If you are looking to sell units in 2026, CONTACT US early in the year to start planning ahead for the best pricing.
We currently have space to onboard 4 new properties in January, so contact us today to get started.
