BiggerPockets members have spoken. Their verdict: cautious optimism.
In the brand new Larger pockets Pulse survey, BP members were asked Unpleasant to fill in their expectations for 2026. Despite a year of slow frustration in In many markets, respondents generally feel good about closing deals in 2026, with hopes of lower interest rates and affordability when stabilizing markets, indicating a soft one change from the wind is in favor of investors looking to build their portfolios.
The only way is up
Make no mistake, this isn’t the frenzied euphoria of 2020-2022, but more of a “the only way is up” sentiment following recent interest rate drops and news of increased inventory in the face of the affordability crisis.
The sentiments of BiggerPockets members are consistent with national predictions of an overall more stable market. Realtor.com expects interest rates to average around 6.3% in 2026, a slight decrease compared to 2025, while house prices rise is expected be modest. Practically speaking, that could be possible result in an increase buying opportunities for sensible buyers, but no dramatic correction.
BiggerPockets members have read the market correctly and that’s why most plan to build their portfolios instead of sitting on the sidelines.
The house price growth map: What about Atlanta and Indianapolis?
BiggerPockets’ 2026 home price growth map shows a noticeable difference between the markets expected to grow and those where momentum has stalled or reversed. Georgia and Indianapolis, the real estate stars of recent years, fall into the latter category and are down more than 5%. It has had a clear effect on how both residents and buyers think about their local markets.
‘Hotlanta’ no longer exists is called
Atlanta was once an investment rock star with a buoyant post-pandemic market. The prediction decline in turnover is due to softening rental prices, higher insurance and property taxes costs, and a smaller group of buyers who can afford peak-era prices. Investors in the Atlanta area would do well to wait until the market bottoms before making a move cash flow could be at current prices difficult come by.
Indianapolis: a confusing picture
BiggerPockets data estimates a more than 5% drop in home prices in Indiana. However, Certainly markets will experience bigger declines than others. HousingWire reported in late 2025 that sellers in Indianapolis saw prices cut on 56% of homes amid rising inventory and low absorption rates.
Despite the seemingly alarming numbers for both Atlanta and Indianapolis, the metros are still a long way from the crash zone. Instead, they are shifting from the crazy price increases of 2020 to 2022 heading a more everyday market with slower valuation.
In either case, it seems wise for investors to wait until the market cycle has run its course before jumping in.
Growth markets: slow, stable and still affordable
If you’re trying to formulate an investment strategy, the Northeast, the Midwest and parts of the Inland South could prove to be a happy hunting ground, according to BiggerPockets’ home price growth map. States expected to increase by more than 5% include:
- Arkansas
- Connecticut
- Kansas
- Massachusetts
- Minnesota
- Mississippi
- Missouri
- Montana
- Virginia
- West Virginia
- Wisconsin
Cold markets in the Northeast offer long-term opportunities
Realtor.com shares a similar view with New York markets such as Rochester and Syracuse, which are close to Rhode Island and Connecticut, home to Hartford, Connecticut, another rapidly appreciating metropolis, where appreciation is expected are in double figures. These markets are marked due to their relatively low house prices, population growth and limited housing supply.
Many of these cities benefit from this big investments from the technical sector. For careful buyers, these markets can offer the holy trinity of affordability, steady growth and cash flow, as long as you buy right.
Certainlycompared to many metros, these cities offer a safer option. However, many parts of these cities have not yet ‘turned the corner’, while high crime is still a problem. like in Syracusemeaning buyers must be careful not to step into a landmine of renters.
Why Ownership Rates Affect Rental Inventory
National data shows that as of the second quarter of 2025, 65% of U.S. homeowners own their homes, while 35% rent, with variations by state. States in the Midwest and South tend to have higher homeownership rates, and thus tighter sales inventories – factors that support price stability and moderate appreciation.
Lower prices here equate to greater affordability for homeowners and renters alike. This contrasts with some of the South and West markets, where rapid construction and price escalation have occurred resulted in flat or falling rental prices, stagnant or negative price growth and affordability problems for many potential buyers.
In short, it’s difficult to invest in many Sunbelt markets compared to more stable markets elsewhere, where the numbers still work, demand is diversified and forecasts point to slower, sustainable appreciation.
Tenants, owners and costs
Deciding where to invest must be weighed against rental demand statistics. Just because a city is affordable and appreciated does not mean there will be a high demand for rental properties.
While the average homeownership rate across the country is 65%, ownership in states like West Virginia, Maine and Minnesota rises to over 70%, according to DoorLoop, while expensive states like California, New York and Nevada Real percentages approach 40%, well above the national average of 35%. In the more expensive states, it is much more difficult to make cash flow figures meaningful.
Stable rental markets for single-family homes
High-property, lower-cost states and metro areas such as West Virginia, Delaware, Michigan, Maine and Vermont tend to support stable economies. single-family homes because residents value home ownership, according to visualcapitalist.combut not everyone can buy initially.
These tenants have a greater chance of eventually becoming buyers, but start out by renting a single-family home – the next best thing. As prices rise in single-family home markets, the probability Longer rentals are increasing, but the risks of investing also increase as a result of greater leverage.
Final thoughts
Placing BiggerPockets Pulse responses alongside national forecasts creates a coherent investment strategy for 2026. Faced with a spectacularly unspectacular housing market, BiggerPockets members are focusing on long-term rentals and portfolio building, rather than speculative valuation or short term rental.
For depreciating markets like Atlanta and Indianapolis, adjust the underwriting conditions accordingly and buy right away, below recent prices, in anticipation of the markets bottoming, or wait for it to happen. In falling home prices, sellers are desperate, creating opportunities for smart buyers.
In emerging housing price markets, investors cannot afford to abandon the same disciplined protocols. Identifying solid, gradually increasing – mid-single digits – rather than exuberant increasing markets are the key to long-term growth. Linked to this is the need for healthy sales activity, affordability and income and employment ratios of less than 30% for both renters and homeowners.
Layered smart investment strategies, such as forcing equity through rehabilitation and holding long enough to benefit from gradual appreciation, on top of other metrics, will guarantee what BiggerPockets investors desire most: a reliable, cash-flowing long-term rental.
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