Lima One Capital Releases Its 2026 Housing Market Overview

Lima One Capital has released its 2026 Housing Market Overview, a whitepaper that compiles projections and analysis from leading housing and economic sources to assess what real estate investors may encounter in the coming year.

The report covers mortgage rates, home prices, housing inventory, rental trends, fix-and-flip performance, and construction outlook, offering a broad macro snapshot for investors operating in today’s higher-rate environment.

Mortgage rates remained above 6% throughout 2025, contributing to slower refinance activity and continued affordability constraints.

Looking ahead, projections referenced in the report place unemployment near 4.2% and inflation around 2.4% in 2026. In that context, substantial rate cuts may be limited in the near term, potentially keeping mortgage rates close to current levels unless broader economic conditions change.

Home prices appreciated at a modest 2–3% pace in 2025. For 2026, forecasts cited in the whitepaper range between approximately 1.2% and 4%, depending on the source.

This range suggests continued appreciation, though at a more moderate and sustainable pace compared to the accelerated growth seen in previous cycles.